The biggest mortgage mistake buyers make is changing their financial picture between pre-approval and closing — financing a car, opening a new credit card, switching jobs, or moving large sums of money without a paper trail can all cause a lender to pull your approval, even after you're under contract.
Do get pre-approved before you start looking
Get pre-approved before you tour homes, not after you find one you like. Without a pre-approval in hand, a competitive listing can be gone before you finish the paperwork — and in a market where good homes move fast, that's the difference between making an offer and missing out entirely.
Do shop more than one lender
Compare quotes from three to five different lenders — banks, credit unions, online lenders, and mortgage brokers all price loans differently, and a lender you didn't consider could save you real money over the life of the loan.
Don't finance a car or any large purchase
Lenders run a final credit check shortly before closing. If a car loan, furniture financing, or any other new debt shows up on that check, it can jeopardize your approval even if you were already cleared to close.
Don't max out your credit cards
Keep credit card balances well below 30% of your limit — on a $3,000 limit, that means staying under roughly $900. High utilization drags down your credit score right when it matters most.
Don't change jobs or careers mid-process
Lenders want to see consistent employment, generally two years or more in the same field. Switching jobs — and especially switching to a different line of work — can require a fresh two-year history before you qualify, which can derail a purchase that's already in motion.
Don't move large amounts of money without a paper trail
Any large, non-payroll deposit into your bank account during the mortgage process will get scrutinized. Document where it came from — a gift letter, a sale of an asset, whatever it is — before your lender asks.
Don't make any major financial moves during underwriting
Once you're under contract and in underwriting, treat your finances like they're frozen: no new credit cards, no car purchases, no new loans. Lenders can and do rescind approval for changes that happen even days before closing.
Frequently asked questions
Can a lender deny my mortgage after I'm already under contract?
Yes — lenders re-check credit and finances close to closing, and new debt, a job change, or an unexplained large deposit can cause them to withdraw an approval that was already issued.
How many lenders should I get quotes from before choosing a mortgage?
Most guidance suggests comparing three to five lenders — a mix of banks, credit unions, online lenders, and mortgage brokers — since pricing varies meaningfully between them.
Is it okay to buy a car right before closing on a house?
No — financing a car or any large purchase before closing adds new debt that shows up on your lender's final credit check and can jeopardize your mortgage approval.
Should I get pre-approved before I start touring homes?
Yes — get pre-approved first. Without it, you risk losing a home you like to another buyer while you're still finishing the pre-approval process.
Getting ready to start the pre-approval process? I can walk you through what to expect and connect you with lenders I trust. Let me know a good time to talk.
Jason Kraus, Broker/Owner, REMAX Advanced Realty — MOVE Group, Hamilton County's dedicated local team headquartered in Westfield.
Ready to start the search? See our Buyer's Agent in Westfield guide, our New Construction Homes guide, or the Hamilton County real estate hub.
Once your mortgage is lined up, see our companion post on what closing costs Indiana home buyers should expect for the fees that come due at the closing table.
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