Once you’ve been approved for a mortgage but before the close of escrow, it is crucial to maintain your financial stability to ensure the loan approval remains valid. Here are several things you should avoid doing:

  1. Do Not Change Jobs: Lenders look for stable employment history. Changing jobs can make you look less stable, and it could lead to complications with your mortgage approval.
  2. Avoid Large Purchases: Refrain from making significant purchases, especially on credit, such as buying a car or expensive furniture. Large purchases can affect your debt-to-income ratio and alter your credit score.
  3. Do Not Apply for New Credit: Avoid opening new credit accounts, such as credit cards or personal loans. New credit inquiries can reduce your credit score and signal financial instability.
  4. Do Not Close Credit Accounts: Closing credit accounts can impact your credit utilization ratio and lower your credit score. It’s best to keep your credit profile unchanged until after closing.
  5. Do Not Co-Sign Loans: Co-signing a loan for someone else increases your liabilities and can affect your debt-to-income ratio.
  6. Avoid Missing Payments: Ensure all your existing credit payments are made on time. Late payments can significantly impact your credit score and might jeopardize your mortgage approval.
  7. Do Not Make Large Deposits Without Documentation: Any unusual large deposits in your bank accounts should be documented. Lenders need to ensure that you are not taking on additional debt and that you can prove the source of any significant deposits.
  8. Do Not Make Cash Transactions: Large cash transactions can be difficult to trace and verify. It’s better to keep transactions transparent and documented through your bank accounts.
  9. Do Not Change Bank Accounts: Stick with your current bank accounts to avoid any confusion or need for additional documentation.
  10. Avoid Moving Funds Around: Keep your financial transactions straightforward. Moving large amounts of money between accounts can be viewed suspiciously by lenders and might necessitate additional explanations.

By maintaining your current financial situation and avoiding these potential pitfalls, you can help ensure a smooth closing process for your mortgage.