What to Avoid Before Closing on Your Home in Maryland

You found the right home, your offer got accepted, and you signed the contract. The hard part is over, right? Not quite. The period between going under contract and closing day is when small decisions can create big problems. If you are under contract on a home, there are a few things you should avoid before closing.

I'm John Shea, a mortgage advisor helping homebuyers and military families navigate the homebuying process throughout Maryland. I see well prepared buyers run into preventable problems at this stage all the time. The good news is that most of these issues are easy to avoid if you know what to watch for. Let me walk through the things to steer clear of and why they matter.

The Big Picture Rule

Here is the heart of it. Avoid opening new credit accounts, making large purchases, changing jobs, or moving money between accounts without discussing it with your lender first. Small decisions can have a big impact before closing.

Your lender approved your loan based on a specific snapshot of your finances. Your income, your debts, your credit, your assets, and your employment all factored into that decision. When something changes between approval and closing, the underwriter has to look at it again. Sometimes the change is fine. Sometimes it is not. Either way, it can slow down or jeopardize your closing.

The safest approach is simple. Keep your financial picture as close to identical as possible from pre-approval to closing. If something has to change, talk to your lender first.

Do Not Open New Credit Accounts

This is the big one. Avoid opening any new credit cards, store cards, auto loans, personal loans, or other financing during your contract period. Even a small new account can affect your loan in ways you might not expect.

Here is what happens. When you apply for new credit, the inquiry shows up on your credit report. Your credit score may drop slightly as a result. The new account, even if you do not use it, can change your debt to income ratio. Your underwriter sees these changes and has to recheck everything.

In some cases, a new account can disqualify you from the loan entirely. I have seen buyers lose their home over a new credit card opened to take advantage of a store discount. The savings on the purchase were not worth the cost of losing the deal.

If a retailer offers you a discount for opening a credit card, politely decline until after closing. The same goes for any "no interest for 12 months" furniture financing for your new home. Wait until you have the keys, then handle those things if you still want to.

Do Not Make Large Purchases

Even without opening new credit, big purchases can create problems. A new car, expensive furniture, or any major outlay can affect your file in two ways.

First, it changes your savings. If your underwriter expects to see a certain amount in your account at closing, and that number drops because you bought a refrigerator, it creates questions. You may need to explain where the money went and how you still have enough for closing costs and reserves.

Second, financed purchases create new debt. Even if the payment does not start for several months, the obligation may still affect your qualifying. Many lenders run credit again just before closing, and any new debt that shows up has to be accounted for.

The advice is straightforward. Wait until after closing to buy the new car, the new furniture, the new appliances, or anything else that puts a real dent in your savings or your credit. Those purchases will still be there. The window to derail your closing only lasts a few weeks.

Do Not Change Jobs

Job stability is one of the things underwriters look at most carefully. Your lender approved your loan partly based on your current employment, your income, and your work history. A job change during the contract period creates a new situation that has to be reviewed from scratch.

If the new job is in the same field, at similar or higher pay, with the same employment type, it might be fine. But it still requires verification, new documentation, and additional underwriting time. That can delay your closing.

If the new job represents a real change, like switching from W-2 employment to self employment, taking a pay cut, or moving from a salary to commission based work, it can be more serious. In some cases, a job change can make you ineligible for the loan you were approved for.

If a job change is unavoidable, talk to your lender immediately. Sometimes there are ways to work around it. Always better to know upfront than to surprise the underwriter a few days before closing.

Do Not Move Money Around

Moving money between accounts seems harmless, but it creates paperwork the lender has to verify. Every transfer needs to be documented, and large or unexplained movements raise questions.

Where this gets tricky is when buyers consolidate accounts, move money to cover closing costs, or accept transfers from family. All of these can be handled, but they require documentation. The lender needs to see where the money came from, when it moved, and that it is yours to use.

Cash deposits are especially problematic. Lenders cannot trace cash, so any large cash deposit during the contract period will get questioned. If you need to deposit money for any reason, ask your lender first and document it properly.

Gift funds from family are allowed, but they require a gift letter and proof that the giver had the funds to give. Handling this incorrectly can delay or disrupt your closing.

Do Not Skip Document Requests

During the underwriting process, you will likely get requests for additional documents. A bank statement that needs another page. A recent pay stub. A clarification on a deposit. These requests are normal, and responding quickly keeps your closing on track.

Buyers who delay document requests by even a few days can push their closing back. Underwriters work in queues, and a slow buyer often ends up at the back of the line for the next review.

The fix is simple. Treat document requests as urgent, even when they feel routine. Most can be handled in a single afternoon if you have your records organized. The buyers who close on time are the ones who treat their lender as a partner and respond promptly.

Do Not Miss Payments on Anything

Even your existing bills need attention during the contract period. A missed payment on a credit card, a car loan, or another obligation can affect your credit score and trigger underwriting questions.

If you are juggling a lot during your move, set up autopay where you can. The last thing you want is a small late fee turning into a credit score drop that throws off your closing.

This applies to current rent payments too, especially if you are using your rental history to support your application. Pay on time, document the payment, and keep things steady.

Do Not Co-Sign for Someone Else

Co-signing for a friend or family member during your contract period is risky. Their loan shows up on your credit report and counts toward your debt to income ratio. Even if you have no intention of actually paying their bill, the underwriter has to treat it as your obligation.

If a family member asks you to co-sign during this time, politely explain you cannot until after your home closes. They can wait a few weeks.

What to Do Instead

The positive version of all this is simple. During the contract period, your job is to stay boring. Make your regular payments on time. Keep your savings in your usual accounts. Show up to your existing job. Avoid any major financial decisions that are not directly required for the home purchase.

If something unexpected comes up, like a family emergency, a layoff, or an opportunity, talk to your lender right away. Most problems have solutions if we know about them in time. The worst outcomes come from buyers who try to handle things on their own and only mention them after the damage is done.

A Few Final Tips

A handful of practical things help buyers close smoothly. Keep your financial documents organized in one place. Respond to lender requests within twenty four hours. Save large texts or emails about your finances so you can document them if needed.

Also, give yourself a buffer for closing costs. Sometimes the final closing figures shift slightly from the initial estimate. Having a small cushion in your account means you are not scrambling at the last minute.

Finally, breathe. The contract period feels long but it is not. Closings typically happen thirty to forty five days after going under contract. A few weeks of staying steady financially is a small price for the home you have been working toward.

Let's Get You to Closing Day

Closing on a home is exciting, and it should feel like a celebration. With the right preparation and steady choices during the contract period, that is exactly what it can be.

If you are under contract and want to make sure everything stays on track, my team and I are here to guide you every step of the way. Reach out and we will walk through your situation, answer any questions about what is coming next, and help you get to closing day with confidence.