Buying a home is an exciting journey, but financial stability is key to ensuring a smooth closing process. Lenders closely monitor your financial activity from pre-approval to closing, and any sudden changes could delay or jeopardize your mortgage approval. Here’s how to keep your finances steady and avoid common pitfalls.

1. Avoid Major Purchases

Big-ticket purchases, such as a new car or expensive furniture, can impact your debt-to-income (DTI) ratio and credit score. Wait until after closing to make any significant financial commitments.

2. Keep Your Credit Stable

Lenders will check your credit multiple times during the homebuying process. To keep your credit profile strong:

• Avoid opening new credit accounts

• Continue making all payments on time

• Refrain from closing old credit accounts, as this may lower your score

3. Maintain Steady Employment and Income

Job changes or fluctuating income can raise red flags for lenders. If possible:

• Avoid changing jobs until after closing

• Keep all employment records and pay stubs readily available

• Notify your lender immediately if any changes occur

4. Don't Move Large Sums of Money

Unexplained large deposits or transfers can delay underwriting. If you must move funds, keep detailed documentation and inform your lender in advance.

5. Continue Saving and Budgeting

Closing costs, down payments, and unexpected expenses can add up. Ensure you have sufficient reserves by:

• Sticking to your budget

• Avoiding unnecessary spending

• Keeping emergency funds intact

Maintaining financial stability throughout the homebuying process can prevent delays and ensure a seamless closing. By following these guidelines, you’ll be well on your way to securing your new home without last-minute surprises.

Looking for expert advice? Connect with a trusted mortgage lender to keep your finances on track!

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