5 Things You Should Never Do Once Your Loan is Approved

5 Things You Should Never Do Once Your Loan is Approved

Applying for a home loan? If you've done all of the work to finally get approved you certainly don't want to sabotage your loan now. However, there are things that borrowers have done that have completely ruined their chances of getting the home loan and even buying a home. That's not something that you want to do. Once you are approved for a home loan and your rate is locked in, it's like you need to freeze your spending. But, no matter how much advice you can give someone, there's always those that make mistakes. As my father always said, you can't make all the mistakes in the world you have to learn by other peoples. Here are 5 major mistakes and things not to do once your home loan is approved.

#1. Buy anything major.

Like I just said, once your home loan is approved freeze any major spending. Yes, you still need to be paying your bills and you can buy groceries, gas, and normal everyday things, but this is not the time to buy a new car or make huge purchases like buying new furniture for the home you think you're going to get. Even if you take out a $1000 home loan or purchase something over $1000, that will trigger your lender to take a look at your finances. They expect you to have enough money in case of an emergency so by spending that money in your bank account, you now don't have enough liquid funds to support that and that may ruin your chances of getting the best interest rate and even the home loan at all.

#2. Canceling credit cards.

You might think that canceling credit cards or eliminating any available balances is a good thing but not in the middle of your loan application. Lenders take a look at all of your available credit, which means that if you have four credit cards and three of them have a zero balance but one of them is maxed out, canceling those three with a zero balance means that now you have zero available credit. That does not look good to lenders. Even if you have credit cards and loans out there with a very low balance or zero balance, keep them until you close on your home loan. This will show that you are responsible with available credit and not maxing out everything you have.

#3. Losing your job or changing jobs altogether.

"This is similar to freezing your spending. Unless you're getting a promotion within the same line of work or within the same company, try not to make any major changes to your employment status. Losing your job, quitting and reapplying for another job, or getting laid off all will affect your chances of getting a home loan. Try not to make any major employment status changes until your loan closes." - Seattle Real Estate Agent

#4. Cease making payments.

This should be a no-brainer, but try to stay up with all of your monthly payments this includes medical bills, insurance payments, car payments, student loan debts, credit card payments, utility payments, or pretty much anything that you know you have to pay on a regular basis. Make sure they are paid on time throughout the duration of your application process.

#5. Getting a windfall.

"You might think this is a great event but any unusual spending or even any unusual deposits into bank accounts can look suspicious. While you may not be able to help some of them, if you can, wait to deposit any major gifts or investments until after the loan closes. If you can't, be sure to have some verification or explanation to provide your underwriters and loan officers just in case." - Buyers Agent Eastern Suburbs

Getting a home loan can be a little bit tricky and anxiety-inducing but if you stick to these five things and try not to make any major moves during the process, you should be clear to close.

Similar Articles

personal loan

You can get a personal loan if you can boost your credit score. Several ways to increase your credit rating include checking your credit reports for mistakes and maintaining sound financial habits. This article will provide you with information on how to improve your credit score.

Secured Caravan Loan

It's that time of year when the family starts to plan their summer holidays. If you're like most people, you'll want to take your caravan with you to make the most of your trip. But before you start packing, you'll need to make sure you have a Caravan Loan in place.


You might have heard the term “payday loans” before, but never really knew what that meant. Payday loans have roots that date back more than a century.

Personal Loan Eligibility

Personal loans are one of the most flexible forms of raising funds as these loans do not come with any kind of restriction on their usage. Whether you have to pay for the medical bills or you wish to go on a world tour, the borrowers have complete freedom to use the personal loans for almost any purpose they wish to

All You Need to Know About Personal Loan Eligibility Criteria

A personal loan is the first thing that comes to mind when we are in need of funds. The loan serves all purposes and helps meet personal needs, whether it is for home renovation or to meet an emergency medical expense.

Everything You Need to Know About Finance For Two Wheeler

Buying a two-wheeler is a matter of pride and passion. Most of us dream about buying a two-wheeler right from the day we start to earn. Two-wheelers do not come cheap and with the latest features and technology, they have become pricier. Manufacturers introduce new models from time to time and it can become difficult to take a pick.


One of the main things you should be doing is zeroing out your budget before each month. That way, you can look at every dollar you spend. This is known as 'zero-based budgeting.' While it doesn't mean you are zeroing out your bank account, it does mean you are accurately tracking your budgeting throughout each month.

Make the Most of Low Business Loans Interest Rate

All businesses need funds to grow and getting access to funds is easier said than done. If you are a business owner with aspirations to take your business to new heights, you are at the right place

Eligibility and Documents for a Commercial Loan

A commercial loan is a common form of borrowing in the country. The loan is usually short term finance that is offered to businesses to meet their operation costs and capital expenditures. A business goes through various stages where it needs funds to grow and expand.