What Not to Do With Credit Before Closing
Written for Louisiana Mortgage Handbook by Chasity Graff, Mortgage Broker/Owner of LA Lending, LLC.
Last reviewed: 2026-06-24
Quick Answer
Before closing, do not open new credit, run up balances, make late payments, finance furniture, buy a car, co-sign debt, or make major credit changes without checking first.
Credit changes can affect the rate, loan program, mortgage insurance, debt-to-income ratio, and final approval.
Why Credit Should Stay Quiet
Once you are preapproved or under contract, the goal is to keep the file steady.
The loan was reviewed based on a certain credit picture. If that picture changes, the file may need to be reviewed again.
Common Things to Avoid
Avoid new credit cards, car loans, personal loans, furniture financing, appliance financing, large credit card balances, missed payments, and co-signing for someone else.
Also avoid disputing accounts or making major credit repair changes during the process unless your mortgage professional tells you to.
Why It Matters
A new payment can affect qualification. A score drop can affect pricing or program options. A late payment can create a serious problem before closing.
Worst case, a major credit change could keep the loan from being approved.
My Thought Process
I know it is tempting to start buying things for the new house before closing. Wait.
Until the loan is closed and funded, the safest answer is to keep credit as boring as possible.
Common Mistakes
- Financing furniture before closing.
- Opening a store card for a discount.
- Buying a car after preapproval.
- Letting a small payment go late.
- Assuming a new debt will not show up before closing.
Bottom Line
Do not make major credit changes before closing without checking first.
The goal is to protect the approval and keep the file on track.
Related Questions
- Why Credit Scores Can Change During the Mortgage Process
- What Happens If Credit Has to Be Repulled?
- How Credit Card Balances Affect a Mortgage
- What Should I Avoid Before Closing?
Educational Note
Educational note: This page is meant to explain the mortgage process in plain English. It is not a loan approval, commitment to lend, rate quote, or legal/tax advice. Mortgage programs, pricing, payments, documentation requirements, and guidelines can change. Final approval depends on credit, income, assets, property approval, appraisal, title review, underwriting review, lender guidelines, and approved credit.