# What not to do before closing on a house (and what to do instead)

Source: https://nobullshitloans.com/buy/what-not-to-do-before-closing/
By Tyler Rood, Loan Officer, NMLS ID # 2064776, Edge Home Finance, LLC (NMLS ID # 891464). Updated 2026-11-09.

## The short answer

From application to keys, don't change anything the lender already checked: no new credit or loans (a car or financed furniture included), no job or pay changes without calling your loan officer first, no deposits you can't document, no spending cash the lender counted, no missed payments and no closing credit cards. The lender can check it all again before closing. Never wire money based on an email alone: confirm by phone at a number you already know.

Your pre-approval, and later your conditional approval, were built on a snapshot: your credit, your income, your debts and your bank balances on the day they were checked. Change any one of them before closing and the snapshot is wrong. Here is what not to do before closing on a house, why each rule matters, and the short list of what to do instead.

## What not to do before closing on a house: the 10 rules


**The 10 rules, from application to keys**

1. Don't open new credit: no new cards, store accounts or loans.
2. Don't buy or lease a car, even for a lower payment.
3. Don't finance furniture or appliances, and don't co-sign for anyone.
4. Don't change jobs, pay type or hours without calling me first.
5. Don't make deposits you can't document.
6. Don't spend or move the money the lender already counted.
7. Don't miss or pay late on anything.
8. Don't close credit cards, even paid-off ones.
9. Don't pay off, settle or consolidate debts without a plan.
10. Don't wire money based on an email.


The rule behind all ten: call me before you change anything. I hate surprises, even on my birthday, and underwriters hate them more.

## Can I open a credit card before closing?

No. A new card means a new inquiry and a new account, both of which can dip your score, and anything you charge on it becomes a payment that counts against you. Store financing is the same thing with a nicer sign: "no interest for 12 months" is still a debt with a payment.

Timing works against you, too. In my experience, once your file is submitted to underwriting, your credit score is your credit score. A score that goes up after that point does not help you, but a new debt can still hurt you.

Co-signing for someone counts as well. If you sign on a friend's or relative's loan, it is your debt in the lender's eyes, and in my files it only comes off your ratios after the other person has made 12 straight payments from their own account.

## Can I buy a car before closing?

Please don't. The full monthly payment counts against you, and on a tight file it can push your debt-to-income ratio over the line.

**Worked example: What a $500 car payment does to a tight file**
- Housing payment (principal, interest, taxes, insurance, PMI): $2,633
- plus Other monthly debts (student loan, card minimums): $350
- equals: Monthly debts before the car: $2,983
Note: On $6,800 of gross monthly income, that is a 43.9% debt-to-income ratio.
- plus New car payment: $500
- equals: Monthly debts after the car: $3,483
Note: Now it is 51.2%. In my files, 50% is the ceiling I work to on a conventional loan.
_Hypothetical: $350,000 home with 5% down at an example rate of 6.5%, Chesterfield's 2026 tax rate, $1,500 a year of insurance and PMI at a 740 score._



**Chart: Debt-to-income before and after a $500 car payment.** One new car payment takes this file from 43.9% to 51.2%, over the 50% ceiling I work to on a conventional loan.

|  | Debt-to-income ratio |
|---|---|
| Before the car | 43.9% |
| After the car | 51.2% |

Reference line: Conventional ceiling 50%.

_On $6,800 of gross monthly income. $350,000 home with 5% down at an example rate of 6.5%, Chesterfield's 2026 tax rate, $1,500 a year of insurance and PMI at a 740 score. Hypothetical, not a quote._


Put another way, at an example rate of 6.5% on a 30-year fixed loan, $500 a month is the principal and interest on about $79,000 of mortgage. That is buying power you just spent on a car, and how payments turn into buying power is on my page about [how much house you can afford](https://nobullshitloans.com/buy/how-much-house-can-i-afford/).

Even a swap that cuts your car payment in half opens a new inquiry and a new account. Leave it alone until you have keys. If a car truly can't wait, call me before you sign anything, and we'll plan the timing and the paperwork together.

**My take**
If it comes down to a bigger car payment or a bigger house payment, I'd rather see the money go to the house. A mortgage is attached to an asset that has tended to rise in value over time, and a car loses value every month you own it. Buy the house first, then decide what you want to drive.


## Can I change jobs while buying a house?

Call me before you accept. A job change is not automatically a problem. In my experience you will not be penalized for taking a higher-paying job, as long as the move has a real benefit, and more money is the clearest one. Take your promotion, take your raise and run with it, but let me line up the offer letter and pay stubs before underwriting asks for them.

What does cause trouble:

- **Switching to commission, bonus-heavy or 1099 pay.** Variable income usually needs a track record before it counts, often two years, so pay that qualified you can stop counting.
- **Losing overtime or a bonus** that was part of your qualifying income.
- **A gap between jobs,** even a short one, in the middle of the loan.
- **Going self-employed.** Your new business income does not count until it shows up on filed tax returns.

The lender verifies your job again shortly before closing, so a change will come out. If it does knock your income down, there can be fixes, such as a small rate buydown that brings the payment back inside the ratios, but they work far better when I hear about the change first.

## Large deposits and mortgage underwriting: what gets flagged

Expect to explain any deposit that is not your regular paycheck. The big ones have to be documented, and each program sets its own line:

| Program | Deposits that need documenting |
|---|---|
| Fannie Mae conventional purchase | A single deposit over 50% of your total monthly qualifying income |
| FHA | A single deposit over 50% of your total monthly income, plus an earnest money deposit over 1% of the price or one that looks excessive |
| USDA | Any one-time deposit over $1,000 that is not wages, plus every recurring deposit that is not wages |

On $6,800 a month of income, the 50% line is $3,400. A $4,000 transfer from your brother needs a paper trail, and a gift letter if it is a gift. Your regular paycheck does not. You may have read that FHA questions any deposit over 1% of the price. That 1% line is for your earnest money deposit, not for your bank statements. Lenders can also be stricter than the program, so assume any odd deposit will draw a question.

How to document one:

- Match both ends: the statement from the account the money came from, showing it leave, and your statement showing it arrive.
- If it landed after your last statement, pull a transaction history from the day after that statement ended through today. Print it to PDF with the web address showing and every page included. Never a screenshot.
- Sold something, like a vehicle or equipment? Keep the bill of sale and a copy of the buyer's payment.
- Keep cash out of it. Cash deposits and back-and-forth payment app transfers are hard to trace and draw more questions, not fewer.

You can't over-document assets. Gift money has its own rules and letter, covered on my page about [gift funds](https://nobullshitloans.com/buy/gift-funds/).

## Don't spend or move the money the lender already counted

The cash in your accounts was counted for your cash to close, and on many loans for reserves too. Spend it on furniture, a vacation or anything else, and the numbers your file was built on may not be there at closing. My page on [cash to close](https://nobullshitloans.com/buy/cash-to-close/) shows how much of it the closing table needs.

Don't pull retirement or brokerage money early, either. If part of your down payment comes from a 401(k) or a stock sale, I'll tell you when to move it, usually around conditional approval, and you may need some of those balances left untouched as reserves. Furniture can wait: build your cushion first and furnish over time, which is the order I lay out in my [Wheel of Wealth](https://nobullshitloans.com/wealth/wheel-of-wealth/).

## Keep paying everything, and don't close your cards

A late is a late is a late. A payment 30 days late gets reported whether the bill was $16 or $16,000, and a fresh late in the middle of a loan can sink it. Put every account on autopay for at least the minimum, scheduled a few days before the due date, so a problem can be fixed before it turns into a late. You can always pay more. Keep paying your rent on time as well, because some loans require a landlord's verification of your rent history.

If I could bold, underline and box one rule on this list, it would be this one: do not close your credit cards, even the ones you have paid off. Closing a card shrinks your total available credit, so the same balances suddenly look like higher utilization. Pay it down, leave it open, and put it in a drawer if you need to. The way balances and limits drive your score is on my page about [credit scores for a mortgage](https://nobullshitloans.com/buy/credit-score/).

## Don't pay off, settle or consolidate debts without a plan

Paying down debt sounds like it can only help. Mid-loan, it can backfire:

- After your file is in underwriting, a higher score does not change anything, so there is no prize for a last-minute payoff.
- Paying off an installment loan early can dip your score. And on a Fannie Mae loan, an installment debt with ten or fewer payments left is generally left out of your ratio already.
- Paying an old collection can cause new problems. Talk to me first, and get any agreement to delete it in writing before you pay.
- A consolidation loan adds a new account and a new payment that counts against you.
- Draining savings to pay debt can leave you short for closing or reserves.

If paying something off would help your file, I'll tell you which account, how much, and what proof to get, usually a zero-balance statement or letter from the creditor.

## Closing week: confirm the wire by phone

**Watch out**
Before you wire your cash to close, look up the closing attorney's or title company's phone number yourself: search for the company and use the number on its own website. Call that number, never the one in the email, and confirm the wiring instructions, account name and number included.


I will never send you wiring instructions, on any deal. They come only from your settlement agent. If an email about wiring money looks like it came from me, it's a scam, so call me before you do anything.

If you think you've already sent money to the wrong place, call your bank right away and ask it to recall the wire, then call me and your settlement agent. The faster you report it, the better your chance of getting it back. The CFPB also says to report it to the FBI at [ic3.gov](https://www.ic3.gov/).

## What to do before closing instead

- Answer document requests fast, complete and as PDFs.
- Send new bank statements and pay stubs as they come out, so nothing in the file goes stale.
- Line up your homeowners insurance quote once you are under contract.
- Read your Closing Disclosure the day it arrives, and send me anything that looks wrong. What happens between conditions and clear to close is on my page about [underwriting](https://nobullshitloans.com/buy/underwriting/).
- Keep your job, your accounts and your spending boring until you have keys.

None of this lasts long. From application to keys is usually a matter of weeks, not months. Until then, the cheapest insurance on your loan is a two-minute call to me before you change anything.

## Frequently asked questions

### Does the lender check my credit again before closing?

Assume it does. In my files, if your credit report would expire within about 15 days of closing, it gets pulled again, and any debt you take on counts in your ratios whether or not it shows on the report yet. Your job is verified again close to closing too. Act as if the lender will see everything, because it usually does.

### What should I not do after pre-approval?

Don't change anything the lender checked (your credit, income, debts or bank balances), starting the day you apply, not the day you go under contract. We only pre-approve, we don't pre-qualify, so your letter is issued on income, assets and credit that were already documented. That makes the letter a snapshot of your file, and if the file changes, the letter can change with it. More on that on my [pre-approval](/buy/pre-approval/) page.

### Can I buy furniture before closing on a house?

Wait. Financed furniture is new debt with a payment that counts against you, and paying cash for it drains money the lender may be counting for closing or reserves. Even after closing, I would furnish over time and build your savings cushion first.

### Can I pay off a credit card before closing?

Often yes, and it can lower your debt-to-income ratio, but talk to me first. The cash still has to cover your closing, and in my experience, once your file is in underwriting a higher score will not change your pricing. Never close the card after you pay it off. If we need the payoff counted, I will ask for a zero-balance statement or letter.

## Sources

- [Fannie Mae Selling Guide B3-4.2-02, depository accounts (large deposits)](https://selling-guide.fanniemae.com/sel/b3-4.2-02/depository-accounts)
- [HUD Handbook 4000.1 (Update 18), large deposits and earnest money](https://www.hud.gov/sites/default/files/Housing/documents/40001-hsgh-Update-18.pdf)
- [USDA HB-1-3555 Chapter 9, Attachment 9-A, depository accounts](https://www.rd.usda.gov/files/3555-1chapter09.pdf)
- [Fannie Mae Selling Guide B3-6-05, monthly debt obligations](https://selling-guide.fanniemae.com/sel/b3-6-05/monthly-debt-obligations)
- [CFPB, mortgage closing scams: how to protect yourself and your closing funds](https://www.consumerfinance.gov/about-us/blog/mortgage-closing-scams-how-protect-yourself-and-your-closing-funds/)

## Disclosures

Individual Originator: Tyler Rood, Loan Officer, NMLS ID # 2064776 (www.nmlsconsumeraccess.org). Licensed in NC, PA, TX and VA.
Edge Home Finance, LLC | NMLS ID # 891464 | www.nmlsconsumeraccess.org. Licensed in all U.S. states & D.C., EXCEPT New York. Edge Home Finance, LLC is a mortgage broker, not a direct lender or creditor. Virginia Broker License MC-7006. North Carolina Mortgage Broker License B-201539. Pennsylvania Mortgage Broker License 81041. Texas: Mortgage Company License, Department of Savings and Mortgage Lending.
Numbers on this page are illustrations, not offers. Any rate shown on this site is an example. Rates may change or may not be available at the time of loan commitment or lock-in.
Edge Home Finance, LLC is a private mortgage broker and is not affiliated with, endorsed by, or acting on behalf of or at the direction of the U.S. Department of Veterans Affairs (VA), the Federal Housing Administration (FHA), the Department of Housing and Urban Development (HUD), or any other government agency.
We do business in accordance with the Fair Housing Act and the Equal Credit Opportunity Act.