I've seen more than one clean, approved loan nearly fall apart in the final week because a buyer did something that felt harmless. Here are the ones that come up most often — and, just as importantly, what you can do to recover if you've already made one of them.
Don't open new credit accounts
That store card at the checkout counter, the car loan for the new truck, the "interest free for 24 months" couch financing — all of it shows up on your credit report and changes your DTI. Lenders pull credit again right before closing. Anything new can force a re-underwrite, or in the worst case, a full reapproval.
If you've already opened new credit
Tell your loan officer immediately. Don't wait for the pre-closing credit pull to surface it. We can usually re-run the numbers with the new debt added — sometimes the file still works, sometimes it requires paying off the new account before closing, sometimes it requires a different loan structure. The earlier we know, the more options we have. The worst version of this is when underwriting catches it 48 hours before closing.
Don't close old accounts either
The opposite also hurts. Closing a long-standing credit card shortens your credit history and raises your utilization, which can drop your score. If a loan officer tells you to leave your credit completely alone until closing, they mean completely.
If you've already closed an account
The damage isn't always reversible. Some card issuers will reopen a recently closed account if you call within 30–60 days; many won't. Either way, tell your loan officer so we can pull a fresh credit report and see whether your score actually moved. In a lot of cases the impact is smaller than people fear — but we need to know.
Don't change jobs without talking to me first
A job change isn't automatically a deal-killer — but it often is if it happens at the wrong moment or involves a pay structure change. If you get a new job offer during your transaction, tell your loan officer before you accept. We can usually plan around it. We can't fix it after the fact.
If you've already accepted a new job
It depends on the type of change. Same field, similar pay, W-2 employee — usually fine, sometimes with a written offer letter and verification of start date. Switching from W-2 to 1099 (or vice versa), going from base salary to commission, or changing industries — much harder. Some scenarios require waiting until you have new pay stubs in hand before closing, which can mean delaying the closing date or restructuring the contract.
Don't make large unexplained deposits
Underwriting will source every deposit over a small threshold (typically $1,000 or 50% of your monthly income, depending on the loan type). Cash deposits, Venmo transfers, gifts not properly documented, sales of personal property without receipts — all of these can delay the file or get the funds excluded from your reserves.
If you've already made a large deposit
Document the source immediately. Cash deposits from undocumented sources are usually unrecoverable — those funds typically can't be used at closing. Gift funds need a signed gift letter from the donor plus their bank statement showing the funds came from their account. Sales of personal property need a bill of sale and ideally some evidence the property existed (photos, prior receipts). The earlier you start gathering documentation, the better.
Don't co-sign a loan for someone else
Co-signing means you're legally responsible for the debt — and underwriting treats it as your debt. A buddy's car loan, your kid's apartment lease, anything you've put your name on shows up on your credit report and counts against your DTI for mortgage qualification.
If you've already co-signed
Disclose it up front and bring documentation showing the primary borrower's payment history. Some loan types allow co-signed debt to be excluded from your DTI if you can document the primary borrower has been making payments on time for 12 months. The documentation requirement is real — bank statements showing the payments came from their account, not yours. Don't try to hide a co-signed obligation; it's on your credit report and underwriting will find it.
Don't pay off old collections without asking first
Counterintuitively, paying off an old collection can actually drop your credit score temporarily because it updates the account's last-activity date. If your collection is more than a few years old and you're 60 days from closing, the smart move is often to leave it alone, document it as paid through the closing process if needed, and address it after you have keys.
If you've already paid off a collection
Pull a fresh credit report and tell your loan officer. The score impact is usually short-lived — within a few months scores typically rebound. If the timing of your closing is tight, your loan officer may be able to do a rapid rescore (a paid service that gets credit bureaus to update faster than the normal monthly cycle), which can pull a slightly weakened score back into the lender's required range.
The complete don't-do-this list
- Don't apply for new credit (cards, auto loans, store financing).
- Don't close old credit accounts, especially long-standing ones.
- Don't change jobs without telling your loan officer first.
- Don't make large cash deposits or accept large undocumented gifts.
- Don't co-sign a loan for anyone, even temporarily.
- Don't pay off old collections in the 60 days before closing without checking first.
- Don't move money between accounts without keeping documentation.
- Don't miss any payments — even on debts you're planning to pay off through closing.
What to do next
If you're in the middle of a transaction and you've already done one of these, send me the details. Most credit slip-ups are recoverable when caught early — the worst-case scenarios are the ones underwriting catches at the last minute. Get pre-approved when you're ready, or send me a message first and I'll walk you through what to watch for in your specific situation.
