WHAT NOT TO DO AFTER SIGNING A NEW HOME CONTRACT
Once you’ve signed a contract to buy or build a new home, avoid actions that could jeopardize your mortgage approval or delay closing.
FINANCIAL MOVES TO AVOID:
- Don’t open new credit accounts – This can affect your credit score and debt-to-income ratio.
- Don’t make large purchases – Avoid buying cars, furniture, or appliances until after closing.
- Don’t co-sign loans – Even if you’re helping someone else, it still impacts your financial profile.
- Don’t miss payments – Stay current on all of your bills to protect your credit.
BANKING & EMPLOYMENT CHANGES:
- Don’t change jobs or income sources – Stability is key during underwriting.
- Don’t deposit large sums without documentation – Unexplained deposits can raise red flags.
COMMUNICATION & DOCUMENTATION:
- Don’t ignore lender requests – Respond promptly to avoid delays.
- Don’t assume anything is final until closing – Loan terms can change based on new information.
Staying financially and professionally stable during this period helps ensure a smooth path to closing. Always consult your
loan officer before making any major decisions.