Between Loan Approval and Closing in the Richmond Area: What Not to Do With Your Credit, Job or Savings

You have a loan approval, a contract and a closing date. The temptation is to relax, buy the sofa and start moving boxes. Resist it for a few weeks. The approval you received was based on a snapshot of your credit, income, cash and the property, and the lender usually confirms that the snapshot still matches reality before it releases the money. This is the second post in our three-part series on mortgage underwriting to closing: the first covers underwriting conditions after contract, and the third covers the closing disclosure and the three-day rule. (Those two links go live as each post publishes, so one may not open yet if you are reading early.)

Why the lender looks again after you are approved

Lenders typically re-verify a few things close to closing, because a loan can fall apart on facts that changed after the file was approved. Common checks include an updated look at your credit, a verification of employment, and a review of recent bank statements. The purpose is to confirm that the borrower still has the income, debts and funds that the approval assumed. Exactly which checks happen, and when, varies by lender, so ask your loan officer for their list rather than assuming.

The CFPB frames the same idea from the borrower’s side. Its Loan Estimate explainer tells buyers to check the estimated cash to close and the rate lock, because those numbers drive what you must have ready on closing day. If your cash or your debts change, those numbers can change with them. For the larger picture of what underwriters evaluate, see our guide to what lenders look at besides your credit score.

Credit: what counts as new debt

Lenders generally want your debt picture at closing to match your debt picture at approval. Practices vary, but these are the things that commonly cause questions:

• New loans and cards. A car loan, a store card that offers a discount at checkout, a personal loan, or a “buy now, pay later” account can add a payment or an inquiry. Furniture financing for the new house is the classic example.
• Co-signing for someone else. Even if you never make the payments, a co-signed loan can count against you. Ask before you sign for a relative.
• Big balances on existing cards. Running up a card for moving costs can change your utilization and your reported minimum payment.
• Closing or opening accounts. Closing an old card can change your credit profile in ways that are hard to predict. Leave accounts as they are unless the lender asks otherwise.
• Missed or late payments. Keep every existing payment on time through closing day.

If you carry student loan payments, how they were calculated in your approval matters, and our guide on buying with student loan debt explains the common approaches. To see where these re-checks usually fall in the calendar, our timeline guide on how long closing takes shows the typical stages from contract to keys.

Job, income and contract status

A change in employer, pay structure or hours deserves a call to your loan officer before you accept anything. Lenders typically verify employment close to closing, and a new job, a move from salary to commission, or a reduction in hours can change how your income is counted. This applies to being laid off, too, and it applies to a spouse or co-borrower whose income is part of the approval.

Self-employed buyers face a different version of the same question, because income is documented through returns and statements rather than a pay stub. If that is you, read our guide to buying as a self-employed buyer and tell your loan officer about any large change to your business before closing, not after.

Money: deposits, transfers, gifts and closing funds

Lenders typically look at where your down payment and reserves came from, and they usually want the paper trail to be clean. Practices differ, but common guidance is:

• Do not make large unexplained deposits. A deposit that does not match your normal pay pattern can trigger a request for documentation of the source. Keep the paperwork for anything unusual, such as a sold car or a bonus.
• Move money carefully. Transfers between your own accounts can be fine, but keep them traceable, and ask your loan officer before shifting funds between banks or into a new account.
• Do not change banks mid-process. Switching institutions can interrupt the statement history the lender has already reviewed.
• Handle gifts by the book. Gift funds usually require a gift letter and documentation of the transfer. Our guide to gift funds for a Richmond down payment covers what lenders ask for.
• Keep your closing cash intact. The CFPB’s Closing Disclosure explainer says lenders are required to give you the Closing Disclosure three business days before your scheduled closing, and tells you to check that the Cash to Close matches your most recent Loan Estimate. The amount you need is on that form, so do not spend the money it depends on.

The quieter risks: insurance, rate lock and moving day

Homeowner’s insurance. Lenders commonly require proof of coverage before closing, often called a binder or evidence of insurance. The CFPB’s Loan Estimate explainer asks whether the estimated homeowner’s insurance premium is accurate. Get quotes early, choose a policy, and send the lender what it needs. For a home with flood considerations, our guide to flood insurance explains when a separate policy may be required.

Rate lock. A rate lock has an expiration date, and a closing that slips past it can mean paying to extend or taking a different rate. Our guide to rate locks, float-downs and extensions explains how extensions work. If anything in this post delays your closing, check your lock date the same day.

Delays. Anything that triggers new documentation can push your date. Our guide to what can delay a Richmond closing lists the usual causes.

Moving day. Schedule movers and utilities, but wait on large purchases for the new house until after the keys are in your hand. Buyers heading to Glen Allen, Short Pump or Midlothian often want to furnish right away, and that is exactly when to wait.

Scammers target the last days before closing

The CFPB’s Buying a house page carries a warning that scammers are targeting homebuyers days before closing, and points to steps to protect your life savings. The practical rule: confirm wire instructions by calling a phone number you already know for your closing agent, not a number in an email. If you get a last-minute email changing where to send money, stop and verify before you move anything.

A simple rule for the weeks between approval and closing

If it changes your income, your debts or your cash, tell your loan officer first. That includes an apparently harmless change like a new card with a welcome bonus. Keep paying your existing bills on time, keep your savings where the lender saw them, and save big purchases and big decisions for after recording. If you want to run your own numbers while you wait, our mortgage calculator shows how a payment changes if your rate or loan amount does.

Between approval and closing: common questions