Buyer Don’ts: Avoiding Common Pitfalls Before Closing

Buying a home is exciting—especially in New Jersey’s fast-paced market. But between getting pre-approved and signing at the closing table, even small mistakes can throw your mortgage off track. At Y&L Mortgage, we guide our clients through this crucial stage, helping them avoid the missteps that can delay or derail homeownership.

Below are the top “don’ts” every homebuyer should know:

Don’t Overspend Before Closing

It’s tempting to buy furniture, appliances, or even a new car before move-in day. But large purchases can increase your debt-to-income ratio, hurt your credit score, or trigger a re-approval process right before closing.

Quick Tip:
Hold off on any big-ticket buys—even using “0% interest” store cards—until after the keys are in your hand.

Don’t Change Jobs (If You Can Help It)

Mortgage lenders look for job stability. Switching employers, changing industries, or moving from a salaried job to commission-based income can cause underwriters to re-examine your application.

Considering a career move?
Call your Y&L loan officer first. We can tell you how it might affect your approval—or help you time the change for after closing.

Don’t Move Money Around

Underwriters need a clear picture of your finances. Avoid shuffling large sums between accounts or opening new bank accounts. Unexplained deposits or frequent transfers can raise questions that delay the loan process.

Rule of thumb:
If you need to transfer or deposit more than $1,000, let your loan officer know in advance.

Don’t Open or Close Credit Lines

New credit cards, personal loans, or even co-signing for someone else’s loan can affect your credit score and debt ratios. Likewise, closing existing credit accounts can lower your credit utilization score.

Stay steady:
Wait until after your loan funds before making any changes to your credit profile.

Don’t Miss Any Payments

With the stress of moving, it’s easy to overlook a utility bill or credit card payment. One late payment can knock down your credit score and raise red flags for lenders.

Pro tip:
Set up autopay for recurring bills during the home-buying process.

Don’t Ignore Closing Costs or Documents

In New Jersey, closing costs typically range from 2% to 3% of the home price, which includes title fees, attorney review, prepaid taxes, and homeowners insurance. High-value properties over $1 million may also incur the 1% Mansion Tax.

You’ll receive your Closing Disclosure (CD) at least three business days before closing. Review every line item—from interest rate to taxes—and ask us about anything that looks off.

Don’t Mishandle Earnest Money

Earnest money shows sellers you’re serious, but it should never go directly to the seller. In New Jersey, it’s usually held by your attorney or title company in escrow. This protects you if the contract falls through under agreed contingencies.

Don’t Skip the Final Walkthrough

Even if everything looked perfect during your last visit, always do a final walkthrough a day or two before closing. Check that repairs are completed and the property is in the same condition as agreed. It’s your last chance to address surprises.

Why These “Don’ts” Matter

We’ve seen buyers delay closings—sometimes by weeks—because of last-minute credit inquiries, big purchases, or undisclosed transfers. Following these simple rules keeps your loan approval smooth and stress-free.

Work With Y&L Mortgage – Your New Jersey Experts

At Y&L Mortgage, we don’t just process loans—we guide you through the entire journey, making sure you understand every step. Our experienced loan officers know the New Jersey market inside out and will help you avoid the pitfalls that can cost time and money.

FAQs