Your home loan pre approval is a key step toward making your home purchase a done deal. But pre approval mistakes can make that piece of paper worthless.
He couldn’t believe his client drove up in a new car a week before her house closing. That’s not a good thing.
“She came into our office and was so proud of herself that she bought this new car to go into her new house,” says Irv Shnidman, who was a branch manager at Movement Mortgage in Baltimore at the time of the interview. “She told me to come outside to look at her shiny new Cadillac. I was shocked.”
Purchasing any big-ticket item or taking out credit to buy anything can stop a mortgage in its tracks. In fact, for his client, buying the vehicle killed her debt-to-income ratio (DTI), and she was not able to purchase the house that she was under contract to do. The transaction just didn’t happen, and her dreams went down the drain.
Check your home buying eligibility. Start here (Nov 14th, 2026)
After home loan pre approval, keep everything “as is”
Buying a home has a lot of moving parts. But after you get your mortgage pre approval, avoid certain mistakes to keep things status quo until all the papers are signed, and you have the keys to the door.
Lenders often re-check your credit before closing, and new debt can make a loan ineligible. “We had somebody who went to multiple furniture stores and bought a whole house of new furniture all on credit. I was the one who had to tell him that they won’t be closing on their house the following day as expected. That person didn’t quite get it,” Shnidman says.
Their response to Shnidman: “Now, what am I supposed to do with all this furniture that is going to be delivered in a few days?” Lenders throughout the country have horror stories like this about people who just didn’t understand that a pre approval doesn’t guarantee that their loan is set in stone.
“When we have a client come in, we give them a guide of the dos and don’ts. We have important things that we tell them not to do,” he says.
Don’t make these common mistakes after home loan pre approval
Don’t quit your job
“Basic as it sounds, quitting your job will stop the mortgage process. I haven’t had people consciously quit their job, but I’ve had clients lose their jobs or change jobs. And those can have the same effect depending on if it’s in the same profession or same company, or if they become self-employed,” Shnidman says.
A pre approval depends a lot on someone’s ability to repay. So when the lender sees that you no longer work at the same place, there will be red flags. And say you decide during the process to work for yourself and start your own business in the same industry. That could have a big negative effect on getting that mortgage.
Don’t make a major purchase
Buying appliances, outdoor furniture or anything that is a big ticket item can be a really bad move. Suppose your checking or savings account suddenly drops by a few thousand dollars. That will hurt you if your home loan pre approval counted on that money for the down payment or closing costs. The lender wants to know what money is coming in and what money is coming out.
Don’t take out any more credit
Your favorite furniture store has an amazing deal for you: a 48 months same-as-cash offer, and no payments for 12 months. You can get all the furniture you need for your new house. But wait. Even though you don’t have payments to start, the lender will count payments as if they were due immediately.
“Even stay away from free offers. For example, if someone at a ball game offers you a free umbrellas for getting a new credit card, just kindly refrain during the mortgage process and go buy your own umbrella,” he says.
Don’t deposit unaccounted cash into bank accounts
Lenders can ask for a letter of explanation for any large deposit from an unclear source. For Fannie Mae loans, a large deposit is one over 50% of your total monthly qualifying income. The lender doesn’t want to discover too late that you have been stashing $10,000 under your mattress and then decide after the pre approval to put it in the bank for safe keeping. Staying honest about everything is important.
Don’t miss a payment on your credit cards and loans
You have been so busy looking for the perfect house that you forgot to pay your Visa and store card bills. Oops. Late payments can make your credit score plummet. It could fall below where the lender needs it to be for the mortgage you want at the rate you want. Plus, the lender may wonder what kind of homebuyer you will be if you can’t even make monthly payments on credit cards. Will you forget to pay your mortgage, too?
Get (and Keep) a Home Loan Pre Approval
You need a home loan pre approval to seriously look at homes. Without one, some real estate agents won’t even show you a home. That comes as a surprise to many home buyers.
Get a pre approval, then avoid the mistakes above to keep it valid.
Check your home buying eligibility. Start here (Nov 14th, 2026)
