Pre-approved? Here's what not to do before you close

Congratulations, you're preapproved. That's a big deal. It means a lender looked at your finances and liked what they saw.

Here's the part nobody mentions at the celebration: your lender is going to look again. Between now and closing day, the goal is simple. Keep your finances looking exactly like they did the day you were approved.

Isn't a preapproval a done deal?

Not quite yet. The Consumer Financial Protection Bureau puts it plainly: a preapproval letter is not a guaranteed loan offer. It's the lender's read based on what they saw at the time.

Before you close, the lender checks again. For conventional loans that follow Fannie Mae's guidelines, the lender has to reconfirm your employment within 10 business days of closing. Lenders can also check your credit again before you sign.

So think of your time under contract as the home stretch. Here's how to run it clean.

Employment reverification timing applies to conventional loans that follow Fannie Mae guidelines. Your loan program and lender may differ. Source: Fannie Mae Selling Guide and the Consumer Financial Protection Bureau.

Can I open a new credit card or finance furniture?

Please wait. I know the new house needs a couch. That store's special financing offer will still be there after closing.

A new account adds an inquiry to your credit, and once it carries a payment it changes how your debt compares to your income. That comparison is one of the main numbers your approval rests on.

Can I buy or lease a new car?

Same answer, bigger payment. A car loan is one of the fastest ways to push your debt past what your loan allows. If your car truly can't make it to closing, call your lender before you shop, not after.

What if I change jobs?

Talk to your lender first. A new job isn't automatically a problem, and sometimes it's a raise worth celebrating. But because your lender reconfirms your employment right before closing, a change they don't know about can stop everything at the worst possible moment. How you're paid, when the change happens and any probation period all matter, and only your lender can tell you how your loan program treats them.

Can I move money around or accept a gift for the down payment?

Yes, with a little care. Lenders need to know where your money came from. A large deposit that shows up without an explanation can mean extra paperwork, delays, or money they can't count toward your down payment.

If family is helping, that's wonderful, and there's a right way to do it, usually with a gift letter. Ask your lender how they want it documented before the money moves.

And keep your funds where your lender can see them. Shuffling money between accounts right before closing makes the paper trail harder to follow.

Should I co-sign for someone right now?

Not before you close. When you co-sign, their debt counts as yours in the lender's eyes, even if they never miss a payment.

Is it okay to close old accounts or pay things off?

Keep paying every bill on time. That matters more now than ever.

Closing accounts is a different story. It can lower your score by shortening your credit history and raising how much of your available credit you're using. More on that in how to improve your credit score before buying a homehow to improve your credit score before buying a home/blog/improve-credit-score-before-buying-home.

If you want to pay something off to help your numbers, ask your lender first. Sometimes it helps. Sometimes it drains the savings they were counting on for closing.

What's the one rule that covers all of this?

Call your lender before you change anything financial. Not after.

Your lender can tell you in five minutes whether something is fine. Finding out on closing day costs a lot more. You've already done the hard part by getting approved. This is just protecting it.

If something already went sideways and the loan was denied after preapproval, that has its own playbook: my loan was denied after preapproval, what now?my loan was denied after preapproval, what now?/loan-denied

Not preapproved yet? Start with your first call with a lenderyour first call with a lender/blog/first-call-with-a-lender.