What Not to Do Right Before Closing
I received a very panicked call from a friend over the weekend.
He’s purchasing a new construction home with one of the large national builders. Because the builder was offering a significant contribution toward closing costs, I had advised him to use their preferred lender for the purchase, since that made the most financial sense for him. That said, I stayed involved as a resource to guide him and answer questions along the way.
Everything was lined up perfectly.
- Closing was scheduled for Tuesday
- Credit was re-pulled a few days prior
- Closing Documents were e-signed
- Funds already wired to the closing attorney
Then… over the weekend, his wife and son went appliance shopping. They were offered 0% interest for 18 months, which sounded harmless, so they opened a new account with a sizable balance and a monthly payment.
Here’s the problem: That new monthly payment could have jeopardized his loan approval, just days before closing.
Well-meaning friends advised him to “keep quiet” and not mention it. That advice was completely wrong.
Once a loan moves into processing, lenders set up credit monitoring alerts that flag new inquiries and newly opened accounts. This isn’t optional — it’s a standard practice.
I advised him to pay off the balance immediately and obtain a zero-balance statement, which helped mitigate the situation.
Thankfully, this story has a HAPPY ending 😊 — but it could have gone very differently.
The Takeaway for Buyers
There’s an old saying for a reason:
Never lie to your doctor, your CPA, or your loan officer — they have a way of finding out the truth.
More importantly, your loan officer isn’t there to judge or “get you in trouble.” We’re here to protect your approval.
The Bottom Line
If you’re under contract or approaching closing:
- Avoid opening new credit accounts
- Avoid large purchases (even “0% interest” ones)
- Avoid increasing monthly obligations
- Always check with your loan officer before making changes
Even small decisions late in the process can have big consequences, from loan approval to mortgage insurance to final loan terms.
Good guidance upfront can prevent unnecessary stress — or worse — at the closing table. When in doubt, ask. That’s what I am here for.
The BankSouth Mortgage Advantage
Experience the speed of ReadyApprove from BankSouth Mortgage, where you can secure conditional approval for conforming loan limits within hours.
With ReadyLoan®, you can make this process even easier. Our digital platform lets you apply, track your loan progress, and submit documents securely—all from your computer or mobile device. You’ll be armed with the confidence to quickly submit an offer, and the seller will see you as a serious, prepared buyer.
Have peace of mind with our FREE one-time rate float-down* and no lender fee refinance options!
When you purchase your home with me at BankSouth Mortgage, you may be able to refinance later with no lender fees.** This program offers flexibility as life changes, with the potential for savings when it matters most.
*One-time float down available on 45-120 day rate locks. Float down must be executed at least 15 days prior to closing and must be at least .125 improvement. ** This offer may change or end at any time without notice. “No Lender Fees” refers to waived origination charges. Eligibility conditions apply. Subject to credit and property approval.
Blog post date: Friday, January 23, 2026
