Pre-Approval
Things to avoid before closing (credit, cash & job changes)
Once you’re under contract, underwriters re-check your credit, income, and assets. Keep your file clean by avoiding these common approval killers—and use the safer alternatives below.
On this page
Top 5 don’ts
Cash, transfers & deposits
Employment & income changes
Big purchases & BNPL
Do this instead
Next steps
Top 5 don’ts
- Don’t open new credit (cards, auto, BNPL) or co-sign for anyone.
- Don’t make large cash deposits without a paper trail.
- Don’t move money around between accounts right before closing.
- Don’t change jobs or pay structure (salary → commission) without talking to your LO.
- Don’t buy big-ticket items (furniture/appliances) on credit before you close.
Lenders often run a credit refresh and a final VOE (verification of employment) right before closing.
Cash, transfers & deposits
What to avoid
- Unexplained cash deposits or peer-to-peer transfers (no trail).
- Frequent shuffling between checking/savings/brokerage.
- Withdrawing down-payment funds from retirement without plan docs.
What to do
- Consolidate funds into one account before underwriting.
- Document gifts: lender gift letter + donor ability + transfer proof.
- Upload full PDF statements (all pages), not screenshots.
Deep dive: Assets & reserves and paper trails that work.
Employment & income changes
- Switching employers or pay type (to commission/1099) can delay or derail approval.
- Second jobs/OT/bonus usually need a history to count as income.
- Tell your LO before accepting any offer or changing hours.
Big purchases & BNPL
- New balances raise utilization and minimum payments → higher DTI.
- “Zero interest” promos still show as debt; BNPL often reports too.
- Wait to buy furniture, appliances, or a car until after you close.
Model payment impact in the Mortgage Payment Calculator before taking any new debt.
Do this instead
| Skip this | Do this instead | Why |
|---|---|---|
| Open a new card for points | Use existing cards; pay to <10–30% util before statement | Keeps score stable and DTI lower |
| Deposit cash from side gigs | Use traceable transfers; keep invoices/contracts | Underwriters must source large deposits |
| Switch jobs/pay structure | Delay until after closing; or get LO sign-off first | Stability is a key approval pillar |
| Buy furniture on 0% APR | Price items but purchase after closing | Avoid new debt & score dips |
Next steps
- Run payment scenarios in the Payment Calculator.
- Track cash to close with the closing-cost tracker (Sheet).
- Ask for seller credits if you need closing-cost help.
Disclaimer: Educational info; not financial or legal advice. Lender policies vary by program and state.