Quick answer
Before you apply, and until you close, don’t make a big financial move without asking your loan officer first. That means financing a car or furniture, co-signing someone else’s loan, closing the wrong accounts, or changing jobs. Any of these can change your credit scores, your debt-to-income ratio or your income. Underwriting checks your file again before closing, so a change can affect even a pre-approved loan.
Rules on this page were checked on against CFPB guidance and Valor Mortgage’s guides. Program terms are subject to agency and lender guidelines and may change, and individual lenders can set stricter rules.
Three pre-approval pitfalls
Transcript: So three major mistakes I see before someone gets pre-approved would be making the choice to close the wrong accounts, a co-signing on someone else's loan, or making a big purchase that has a payment plan. One of the things that we look at is your debt to income ratio and your credit scores, and those items can have a huge impact on your whole pre-approval process.
Which moves can affect your loan?
| The move | Why it matters | What to do instead |
|---|---|---|
| Financing a car, furniture or appliances | A new payment raises your debt-to-income ratio, and new credit can lower your scores | Wait until after closing, or ask first |
| Co-signing someone’s loan | You’re generally responsible for that debt, so its payment can count against you | Talk to your loan officer before you sign |
| Closing credit accounts | Closing the wrong account can affect your credit history and how much of your limits you use | Ask which accounts, if any, to close |
| Paying off debt | It may help or hurt, depending on the debt | See which debts to pay first |
| Changing jobs or pay type | A switch from salary to commission can change the income a lender can count | See how a job change affects your loan |
| Moving large sums without records | Lenders may need to document where large deposits came from | Keep a paper trail, and ask before moving money |
General information. Effects vary by person, program and lender.
Why does it matter after you are pre-approved?
A preapproval reflects your finances at that moment. Before closing, your income, assets and credit are verified again, and a lender can notice new debt. As Christopher says in his furniture video, you can finance that car, but there’s a chance you’ll be living in it. The CFPB gives the same warning in plainer words: applying for a card or car loan right before or during the mortgage process can lower your scores.
Can you ever leave out a co-signed loan?
Sometimes. If someone else has been making the payments, conventional loans may allow a lender to exclude it with the right documentation. FHA normally looks for a 12-month record of timely payments by the other person, with some exceptions. It’s easier to keep this from becoming a problem by asking before you co-sign.
What should you do instead?
- Keep paying every bill on time.
- Keep your job and pay type steady, if you can.
- Keep your statements and records for any large deposit.
- Call before any big decision. A few minutes on the phone may save you from a big problem.
More from Christopher on this
Don't finance furniture or a car before closing
Don't buy furniture yet. See, if you buy something with finance while you're buying a house, it totally can throw off your mortgage. So technically you can buy that car and you can finance that car, but it's a high chance you might be living in that car. So if you can hold off on buying anything until you finalize your home purchase, then you can buy with confidence and buy with Valor.
Avoid these common mistakes that slow down mortgage approvals
All right, so there's a couple of things that could actually delay your pre-approval. One thing is, is buying a car or buying furniture or financing something right before you're looking to purchase. Another thing could be you've recently changed jobs and your pay compensation type doesn't match with the loan program that we're trying to get you qualified for. So whether it be your income or whether it be your liabilities or even your credit score, it's always a good thing before you make any major financial decisions to talk to your loan officer if you know that you're going to be buying a house in the next several months so that we can build a plan so that when you do pull the trigger and buy, you buy with confidence and you buy with Valor.
Before you apply FAQ
Can I buy furniture before closing?
Paying cash from money you don’t need for closing is less likely to cause trouble, but ask first. Financing it adds a new account and possibly a payment.
Should I close credit cards before applying?
Usually not without advice. Closing an account can affect your credit, and the right answer depends on your report. Ask your loan officer which accounts matter.
When is it safe to make big purchases?
Generally after your loan has closed and funded. Your loan officer can confirm the timing for your file.
Where these rules come from
| Rule or figure | Source | As of |
|---|---|---|
| New credit during the mortgage process | CFPB, what happens when a lender checks your credit | Nov 5, 2026 |
| Credit limit use | CFPB, getting and keeping a good credit score | Nov 5, 2026 |
| Debts paid by others, conventional | Fannie Mae Selling Guide B3-6-05 | Nov 5, 2026 |
| Co-signed debt, FHA | HUD Handbook 4000.1 | Nov 5, 2026 |
Related answers and guides
- Should you pay off debt before applying?
- Do you need two years of work history?
- What happens during mortgage underwriting?
- More answers on getting pre-approved.
- About Christopher Armantrout.
Call me at (615) 671-9178. That’s the fastest way to get a straight answer on what you’d qualify for and how a big purchase or move could affect your loan.
If it’s after hours, grab a time on my calendar. Pick a slot that works and I’ll call you then.
If your life is too chaotic for a phone call right now — I understand — start an application and I’ll review it and reach out with a plan.
Valor Mortgage, LLC · Christopher Armantrout, Mortgage Loan Originator, NMLS #1210804 · Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 · Licensed in Tennessee · Equal Housing Opportunity
724 S Main St, Springfield, TN 37172 · (615) 671-9178 · christopher@valor.mortgage · NMLS Consumer Access
The dollar figures on this page are illustrative examples for general information only and are not an offer, a rate quote, or a commitment to lend. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Program fees, limits and terms are set by the agencies named above and change without notice; all loans are subject to credit approval, income verification and property appraisal. Not all applicants will qualify.