Don't Spend Extra Money

STOP! Now is NOT the Time to Make Big Purchases

This is one of the most critical financial rules to follow between now and your closing date—your mortgage approval depends on it.

When you were pre-approved, your lender evaluated your financial profile based on:

✔ The funds in your savings, checking, and retirement accounts
✔ Your existing debt (e.g., car loans, student loans, credit cards)
✔ Your credit score and financial stability at that time

However, your lender will pull your credit again before closing, and any significant changes—such as new debt or a reduced cash balance—could put your loan approval at risk.

What to Avoid Until Closing

❌ Do NOT make large purchases – No new cars, furniture, appliances, or expensive electronics.
❌ Do NOT open or close any credit accounts – Avoid applying for new credit cards or loans, and do not close existing accounts.
❌ Do NOT take on new debt – Even 0% financing on furniture or home décor can negatively impact your debt-to-income ratio (DTI).
❌ Do NOT make large cash withdrawals or transfers – Lenders carefully track your available funds, so moving large amounts of money could trigger additional verification requirements.
❌ Do NOT miss any bill payments – Late payments can lower your credit score and potentially delay or even derail your closing.

What You SHOULD Do

✔ Keep your spending to a minimum – Stick to essential purchases only.
✔ Continue paying all bills on time – Keep your credit profile stable and maintain consistent financial behavior.
✔ Check with your lender before making any financial changes – If you’re unsure whether a purchase or transaction will impact your approval, ask your lender first.

The Bottom Line

We know it’s tempting to start shopping for your new home, but hold off on major expenses until after closing. Once the deal is finalized and you have the keys in hand, then you can splurge on that new furniture, TV, or dream vacation!