Your search for the perfect house has finally ended after months of searching. Congratulations on reaching such an exciting milestone in your life! Even though you are undoubtedly excited about this opportunity, it is a good idea to take some precautions during this time to avoid jeopardizing the approval of your application.

There is probably no doubt that applying for a mortgage is on your "to-do" list if you are trying to buy a house shortly. Considering that you were living in apartments for rent in Amarillo before you were approved, don't assume you're all set once you're approved. Several things can derail your loan and cause you to lose your home if you don't deal with them correctly. Here is a list of five things you should avoid after applying for a mortgage.

1. Investing in large purchases

Your mortgage application could be disqualified for several reasons, and not just because of purchases related to your home. Lenders may be wary of large purchases that can raise red flags. The debt-to-income ratio is higher among people with new debt. A higher ratio makes for a riskier loan, so borrowers may not be able to qualify for their mortgages anymore due to this. It is important not to give in to the temptation of making large purchases, such as furniture or appliances.

A new car or a large amount of furniture is probably not the best time to buy a home. A credit purchase can affect your credit score and debt-to-income ratio if you purchase it on credit. The lender's initial investigation into your finances may be thrown off if you pay cash for it. Make sure you refrain from making any waves between the time you apply for your mortgage and the day you close your loan.

2. Account Changes

Remember that your assets will always need to be sourced and tracked by your lenders. 

The consistency of your bank account will make it easier for lenders to identify and track your funds if you have one. Before transferring any money to a new account, speaking with your loan officer is a good idea.

3. Paying Your Bills Late

A borrower's credit score significantly impacts the decision to lend them money for a home purchase. You guessed it, paying your bills on time is the most important factor determining whether you maintain a high credit score. Late payments have a detrimental effect on your credit score, especially if you have made them recently. From applying for a loan to closing, keeping everything the same throughout the process is essential. Before closing, the lender reviews a fresh credit report a few days before closing. Your loan may be at risk if you make new late payments on your loan.

4. Cosign Loans for Anyone

Acknowledge that when you cosign for a loan, you are making yourself accountable for the success of the loan and its repayment. Having that obligation also means having a higher debt-to-income ratio. Even though you promise you will not make the payments, your lender will still have to count the payments against you, regardless of what you promise.

5. Start Applying for New Credit

There is no doubt that when an organization checks your credit history across several channels, whether for a new credit card or for a vehicle loan, it will impact your credit score. A good credit score is a significant factor in defining how much interest you will pay on your mortgage and how much you can borrow.

6. Closing Any existing Accounts

Some buyers believe that having less available credit makes them less risky. It's not true. You score heavily based on the length and depth of your credit history, rather than just your payment history, as well as the percentage of your available credit that you've used. Both aspects of your credit score are negatively affected when you close accounts.

7. Changing or quitting jobs or receiving payments method

You must let your loan officer know how much money you earn each week and your income source. If you are self-employed or making a commission-based income during this time, you should avoid switching to self-employment.

Some people quit their jobs when they buy a home, though this may seem obvious. There is nothing like a happy ending! Continue to work. Keep your full-time job. Don't consider changing companies if you want a better salary or the same rate. Changing employers or income can stall your mortgage timeline if the lender must verify the changes. Only change careers once you've moved in.

8. Deposit Large Sums of Cash

Your lender must source your money, and cash cannot be easily traced. Discuss with your loan officer how to document your transactions before depositing cash into your accounts.


Your home purchase must go smoothly. Be sure to consult your lender before making any major purchases, moving your money around, or making major life changes - someone qualified to explain how your financial decisions may affect your loan. We aim to help you achieve your dream of owning a home by providing you with a mortgage. Whether you are buying a home or applying for a mortgage, our team can help simplify the process and educate you on how to avoid making mistakes that could cause your application to be rejected.