5 Things You Must Never Do After Applying for a Mortgage in Maryland

Part of: The Complete Guide to Buying a Home in Montgomery County, MD

Getting pre-approved is the starting line, not the finish line. Between your mortgage application and closing day, your financial profile is essentially frozen. Lenders re-check your credit, bank accounts, and employment before funding the loan.

One wrong move and your closing is delayed — or cancelled.

Here are the five things never to do from application to closing.

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1. Don't Apply for New Credit

Opening a new credit card, taking a car loan, or even letting a retailer run a hard inquiry on your credit can lower your score and change your debt-to-income ratio — both of which affect your loan terms. Lenders re-pull credit close to closing. Any new account can be a problem.

2. Don't Close Any Existing Credit Accounts

The reverse is equally dangerous. Closing a credit card reduces your available credit, which can increase your credit utilization ratio and lower your score. Leave everything open and untouched.

3. Don't Make Large Purchases

New furniture for the house, a car, appliances — these are normal things people buy when they are about to move. Buy them after closing. A large purchase can shift your debt-to-income ratio above the lender's threshold.

4. Don't Change Bank Accounts

Moving money between accounts, opening a new checking account, or closing an existing one creates documentation headaches that slow closings. Lenders want to see a clean, traceable paper trail. Any unexplained movement raises flags.

5. Don't Deposit Cash Without Documenting It

Lenders track every deposit that does not match a known income source. A gift from a family member, a side job payment, a reimbursement — each needs a paper trail (a gift letter, a contract, a receipt). Without it, the lender cannot count it. Worse, unexplained deposits can halt the process.

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The Rule Behind All Five Rules

Once you have applied, talk to your lender before doing anything financial. That is the single rule. It covers every edge case.

The good news: these are all avoidable. They catch buyers off guard not because they are tricky, but because nobody told them in advance.

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Frequently Asked Questions

What are the common mistakes to avoid when applying for a home loan in Maryland?

The five that derail loans most often happen between pre-approval and closing: applying for new credit, closing existing credit accounts, making large purchases, changing bank accounts, and depositing cash you can't document. Lenders re-check your credit and bank statements right before closing, so anything that changes your debt, your score, or your paper trail can push the loan back into underwriting — or kill it. The safe rule: until you have the keys, don't change anything financial without asking your loan officer first. If you haven't applied yet, start with pre-approval vs. pre-qualification.

Can I use a credit card for purchases while my mortgage is pending?

Routine small purchases on existing cards are generally fine. Large purchases that significantly increase your balance are not. When in doubt, ask your lender first.

What happens if my credit score changes between pre-approval and closing?

If your score drops below the threshold used for your rate lock or loan approval, your lender may need to reprice your loan, require a higher down payment, or in some cases, withdraw the approval. Rate locks are typically tied to a minimum credit score.

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Have a question about the mortgage process in Maryland? Let's talk.

Sources & further reading

Lender-independent sources for the financing detail above:

• Freddie Mac Primary Mortgage Market Survey — the weekly national mortgage rate benchmark
• Federal Housing Finance Agency — conforming loan limits and national house price data
• U.S. Department of Housing and Urban Development — FHA programs, loan limits and HUD-approved housing counselling