Financial Dos and Don’ts During the Mortgage and Homebuying Process

Buying a home is one of the most exciting — and financially significant — steps you’ll ever take. Once you’re pre-approved and under contract, every financial move you make matters. Small changes to your spending, credit, or savings can impact your mortgage approval or delay your closing.

To help you keep your transaction smooth and stress-free, here are the key financial dos and don’ts every Greater Philadelphia homebuyer should know.

💰 The Financial “DOs”

✅ DO Keep Paying Your Bills on Time
Your payment history is one of the biggest factors in your credit score. Even one late payment — on a credit card, car loan, or student loan — can lower your score and affect your mortgage rate or final approval.

✅ DO Stay in Close Contact With Your Lender
If your financial situation changes — such as a job change, new debt, or bonus income — tell your lender immediately. Open communication prevents surprises that could slow down underwriting.

✅ DO Maintain Stable Employment
Lenders verify your income and job stability right up to closing. Avoid changing jobs or industries during the process if possible. Consistency shows lenders you’re a reliable borrower.

✅ DO Keep Records and Documents Handy
You’ll need updated pay stubs, bank statements, tax returns, and other financial documentation throughout the loan process. Staying organized helps your loan move quickly through underwriting.

✅ DO Set Aside Extra Funds for Closing
Beyond your down payment, expect closing costs (usually 3–5% of the purchase price) plus prepaid taxes, insurance, and moving expenses. Keeping a financial cushion makes the final steps less stressful.

✅ DO Continue Saving and Avoid Large Withdrawals
Steady balances in your accounts show financial health and stability. Big withdrawals can raise red flags during the lender’s review.

🚫 The Financial “DON’Ts”

❌ DON’T Make Large Purchases
Hold off on buying furniture, appliances, or a new car until after closing. Large purchases can increase your debt-to-income ratio or trigger new credit inquiries that jeopardize your approval.

❌ DON’T Apply for New Credit Cards or Loans
Even a small credit inquiry can temporarily lower your credit score. Wait until your mortgage is finalized before applying for any new credit lines.

❌ DON’T Co-Sign Loans for Anyone Else
When you co-sign, that debt becomes your responsibility too. It can increase your debt ratio and cause your lender to reconsider your loan terms.

❌ DON’T Move Money Between Accounts Without Documentation
If you transfer funds, keep a clear paper trail. Unexplained deposits or account transfers can create delays while your lender verifies their source.

❌ DON’T Close Credit Cards
You might think closing old accounts helps your credit — but it often hurts it by reducing your available credit and increasing your utilization ratio. Keep existing cards open and active.

❌ DON’T Ignore Requests from Your Lender
Lenders work under strict timelines and documentation rules. Respond promptly to any requests for updated documents or explanations — it keeps your loan on track for a smooth closing.

🏡 The Bottom Line

During the mortgage and homebuying process, consistency and caution are key. Lenders love stability — in your income, debt, and spending. Following these dos and don’ts will help protect your approval, lock in your best rate, and ensure you’re ready for a stress-free settlement day.

📞 Ready to Buy with Confidence?

Whether you’re purchasing your first home, upgrading, or moving to the Philadelphia region, the Premier Home Team helps buyers make smart, financially sound decisions every step of the way.

✅ Trusted local lenders and inspectors
✅ Expert guidance from pre-approval to closing
✅ Personalized advice for Southeastern PA buyers

Contact us today to get connected with our preferred lenders and start your homebuying journey with confidence.

📞  (610) 890-6668
🌐 Check out what our previous clients have to say about working with Premier Home Team