DMV Homebuyers: Avoiding Common Mistakes After Applying for a Mortgage

Applying for a mortgage can be both exciting and intimidating, so knowing common mistakes to avoid after you've submitted your application can relieve some of the stress. As a real estate expert with over 10 years in the industry, I'm here to help guide you through the process and make sure you stay on track! During this blog post, we'll review what not to do once you’ve completed your application, giving you peace of mind as progress throughout your home-buying journey.

Do not change jobs or quit your current job until after closing on the loan

When you are going through the process of securing a mortgage loan, the lending institution is going to be keenly aware of your current financial standing. Changing jobs or quitting your current position could potentially jeopardize the process and affect your ability to secure a loan. Even if you feel confident that you have found other suitable employment, it's important not to make any sudden movements until after closing on the loan. Unless there is an extremely close deadline that needs to be met in order to retain a great job offer, it’s best to maintain your current employment status until after closing on the loan. After that point, you can comfortably move forward and make the changes you feel are beneficial for your financial future.

Do not open any new lines of credit

When it comes to increasing your credit score, one of the easiest rules to follow is not opening up any new lines of credit. Opening additional accounts can actually have a negative effect on your financial profile and keep you from reaching higher goals. Even keeping existing accounts open for longer time frames is more helpful than adding more to the lineup. Speaking as a real estate expert, I advise my clients to carefully consider how opening a new account could ultimately affect their ability to receive financing in the future. Doing some light research and figuring out your personal situation is a step that should never be overlooked or forgotten when improving or maintaining good credit.

Don’t make any large purchases with cash, credit cards, or other loans

Making large purchases with cash, credit cards, or other loans can be tempting, but you should always put caution first. Cash leaves no paper trail and won't help your credit score. And while using a credit card will help your credit score, it also introduces the risk of debt which can have serious long-term effects. Loans too, should only be considered with care - they involve significant interest payments that need to be taken into account when calculating the total cost of purchasing something. Whenever you're thinking about making a large purchase, carefully consider the costs and if there maybe more responsibe methods for financing it.

Avoid making late payments on existing debt obligations

Late payments on existing debt obligations can have serious ramifications for the borrower's credit score. Making timely payments is important for maintaining a good credit score, especially when it comes to real estate purchases. A single late payment could cause a lender to deny an application or to increase the interest rate significantly, making it difficult and more costly to take out additional loans in the future. Moreover, late payments may result in lenders requiring a larger down-payment as compensation. To ensure a bright financial future, it's prudent to pay any loans off on time and do your best to manage existing obligations diligently.

Refrain from moving money around in bank accounts

As a real estate expert, I strongly recommend that you refrain from moving money around in bank accounts when preparing to purchase a home. It’s important to maintain a record of consistent income and deposits so that underwriters can verify your financial stability. Constant transfers may cause red flags, which could hurt your chances of being approved for a mortgage loan or impact the amount of the down payment you will need to make. Avoid any unnecessary spending prior to buying a house, as this could affect your debt-to-income ratio and hurt your chances of securing the best possible terms on a loan. Be financially responsible before buying a home and remember: just because you have money in one account doesn’t mean it has to be readily available to use.

Hold off on leasing a new car or signing up for a gym membership until after closing

As a real estate expert, I'm here to tell you that it's best to wait until after closing on your new home before making any major purchases. Leasing a new car or signing up for a gym membership can put a strain on your budget and make your monthly payments unaffordable. It's not worth the risk of undoing all of the hard work you've done in preparing for purchasing a home. So, hold off until after everything is finalized and you have moved in. That way you'll be able to enjoy your new home and all its amenities without having to worry about additional expenses.


Oftentimes, buyers are tempted to make changes to their daily lives in an effort to secure a loan. While it can be exciting to take those steps, ensuring that your finances and credit profile remain unchanged during the loan process is the best method of success. Following this guidance and waiting until after closing will put you in the best position when applying for a loan. As a real estate expert, I want you to feel confident in your decision making process. I am here to help guide you through this journey and ensure that every box is checked off so that you can confidently close on your loan and begin your new chapter as a homeowner!

If you would like to learn more about how we can help you with your home purchase and sale, give my team a call at: 301-651-4900 or fill out the form below

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