Episode 16 - Don’t Kill Your Deal!
“The Time Between Pre-Approval and Closing Is Not the Time to Experiment.”
- Nelson Barss
Don’t Kill Your Deal: 5 Costly Mistakes That Can Derail Your Mortgage
Getting pre-approved is a huge milestone. But what many buyers don’t realize is this:
The time between pre-approval and closing is fragile.
A small change to your credit, income, or bank accounts can raise red flags with underwriting. And if financing falls apart at the end, you could lose:
Earnest money
Appraisal and inspection fees
The home you fell in love with
Your moving timeline
Here are five mistakes to avoid so you don’t accidentally kill your deal.
1. Don’t Damage Your Credit
Even if we don’t plan to re-pull your credit, sometimes we have to. Credit reports can expire. Disputes may need to be removed. Authorized users might need to be cleaned up.
If we re-pull and your score has dropped 10 or 20 points, it could:
Raise your interest rate
Increase your mortgage insurance
Or disqualify you entirely
Operate as if your credit will be pulled again. Keep balances low. Don’t open new accounts. Don’t close old ones. Make every payment on time.
2. Don’t Take On New Debt
Your lender is actively monitoring your credit.
That furniture purchase with 0% financing?
That new car loan?
Cosigning for someone?
All of it shows up.
Even a $150 monthly payment can push your debt-to-income ratio over the limit if you were already close. If you’re considering any new loan, call first. We can usually calculate whether it’s safe.
3. Don’t Change Jobs (Without Talking First)
Raises are great. New jobs can be tricky.
If income becomes variable, commission-based, probationary, or in a new industry, underwriting may not count it immediately. In some cases, they require six months on the new job before using it for qualification.
And do not give notice before closing. Lenders verify employment right before funding. If your employer says you’re leaving, the loan can be stopped immediately.
4. Don’t Use Cash for Earnest Money or Down Payment
Every dollar used in your transaction must be verifiable.
Cash deposits cannot be sourced. If you deposit money from a safe at home and use it for earnest money, it may not count toward your down payment.
Large deposits (more than half your monthly income) will be questioned. Gifts must follow strict guidelines. Business funds may complicate income verification.
If money isn’t clearly coming from your personal bank account, call first.
5. Don’t Go Silent
The loan process moves quickly.
Check your email daily. Respond to document requests immediately. Delays early in the process create stress and rush at the end.
And most importantly — don’t leave your mortgage team out of conversations about closing dates, seller concessions, employment changes, or large purchases. We can often prevent issues before they become problems.
The Bottom Line
Your pre-approval is not permanent. It depends on your credit, income, debts, and assets staying stable.
The good news? These mistakes are easy to avoid when you know what to watch for.
If you ever feel unsure, call. Ask. Double-check. It’s always better to ask a small question than fix a big problem.