Home  /  The 10 Don'ts
Keep your loan on track
10 Don'ts for
home buyers

Once you're under contract, doing any of these can put your closing at risk - so let's keep your loan on track. If you have any questions or you're not sure about something, just reach out. I'm happy to walk you through it.

The 10 Don'ts until you close
1

Don't change jobs or become self-employed.

We verify your income right up to closing. A new job, a switch to 1099, or a gap can reset the clock - or undo the approval entirely.

2

Don't max out your credit cards or fall behind on payments.

Rising balances and a single late payment can drop your score fast - and that can change your rate or your eligibility overnight.

3

Don't spend the money you've saved for your down payment.

Those funds need to stay put and traceable. Moving or spending them can hold up your approval while we re-document everything.

4

Don't buy furniture or other big-ticket items before you close.

Financing a couch or appliances adds debt and a fresh inquiry - both can shrink how much home you qualify for. The furniture can wait a few weeks.

5

Don't open new lines of credit or apply to raise the ones you have.

Every application is a hard inquiry and potential new debt - and underwriting often re-checks your credit right before closing.

6

Don't make any large or cash deposits into your bank account.

Underwriters need a clear paper trail. An unexplained deposit has to be sourced and documented - or it won't count toward your funds.

7

Don't switch bank accounts or open new ones.

Moving money mid-loan breaks the paper trail we've already documented and slows the whole file down. Keep your accounts as they are.

8

Don't co-sign for anyone.

Co-signing puts that entire debt under your name - even if someone else makes the payments - and it counts against what you qualify for.

9

Don't use cash for your earnest money.

Cash can't be traced, so it can't be counted toward your purchase. Use a check or a wire transfer instead so there's a clean record.

10

Don't buy a car, truck, van, motorcycle, boat, private island, etc.

A new monthly payment changes your debt-to-income and can disqualify you days before closing. You can buy an RV, though - as long as you plan on living in it instead of buying a home!

Life happens

I get it - life happens, and sometimes things come up that you can't plan for. If you think any of these might apply to you, reach out before you do anything and we'll map out a good game plan together.

Quick note: this page is general guidance to help your loan close smoothly. It isn't financial advice, and every loan is different - when in doubt, ask me first. Brian Marchand, New American Funding, NMLS #6606. The Marchand Team, NMLS #481563. Equal Housing Lender.