While it’s exciting to think about decorating and buying new furniture after going under contract on a new home, there are some key things to keep in mind to ensure your loan goes through.

Document and Discuss Any Cash Deposits

Lenders need to source your money, and cash isn’t easily traceable. Before depositing any amount of cash into your accounts, talk with your lender about the proper way to document your transactions. Keeping clear records will help avoid delays in your loan process.

Keep Your Spending Consistent

It’s important to maintain your current financial habits while your loan is being processed. Lenders look for stability, and keeping your spending consistent helps maintain a healthy debt-to-income ratio (how much debt you have compared to your monthly income). Hold off on major purchases and focus on keeping your finances steady.

Be Mindful Before Taking on Shared Debt

If you’re considering cosigning a loan, speak with your lender first. Since cosigning makes you responsible for that debt, it can impact your debt-to-income ratio. Making informed decisions will help protect your loan eligibility.

Maintain Stable Bank Accounts

Consistency is key when lenders are reviewing your financial history. Keeping your bank accounts stable makes it easier to verify and track your assets. If you need to move money, check with your loan officer beforehand to ensure everything is handled properly.

Limit New Credit Activity

Your credit score plays a major role in your loan approval and interest rate. Try to avoid applying for new credit during this time, as multiple credit inquiries can affect your score. Keeping your credit activity steady helps present a strong financial profile.

Keep Existing Credit Accounts Open

Maintaining your current credit accounts can benefit your credit score. A longer credit history and a healthy balance between used and available credit are both positive factors. Keeping accounts open supports a stronger overall credit profile.

Stay in Close Communication with Your Lender

Be upfront about any financial or employment changes. Whether it’s income, assets, or job status, keeping your lender informed allows them to guide you in a way that keeps your loan on track. Open communication is one of the best ways to ensure a smooth approval process.