Credit Mistakes to Avoid When Getting a Mortgage

When you’re in the middle of applying for a mortgage, your credit matters more than ever. Lenders use your credit score, debt ratios, and financial behaviour to determine approval. One wrong move during the process could affect your or even delay your home purchase altogether.

If you’re wondering how to protect your credit score while applying for a mortgage, here are the key things to avoid during the approval process—plus a few simple habits that can help keep your financial profile squeaky clean.

🚫 Avoid New Credit Applications

One of the most common mistakes first-time homebuyers make is applying for new credit while their mortgage is under review. That shiny new credit card offer or zero-down car loan may be tempting—but applying for any new credit can cause your score to dip temporarily and raise red flags for your lender.

Each credit inquiry can affect your score, and new accounts can alter your debt-to-income ratio—two things lenders are watching closely during approval.

Tip:
Wait until after your mortgage closes before applying for anything new.

🚗 Hold Off on Big Purchases

Planning to finance new furniture, appliances, or a vehicle for your future home? Press pause.

Even if the purchase seems unrelated to your mortgage, financing anything big during the approval stage can change your credit profile and affect your debt servicing ratios. That could reduce your loan amount or jeopardize the entire approval.

Bottom line:
Save the shopping spree for after your keys are in hand.

💳 Don’t Miss Any Payments

Keeping your credit clean also means staying consistent with what you’re already responsible for. A single missed or late payment on a credit card, line of credit, or student loan can cause a dip in your score and make lenders question your reliability.

Set payment reminders or switch to auto-pay during this time to stay on track.

✅ Do Keep Old Accounts Open

It might seem smart to “clean things up” by closing old accounts—but that can actually hurt your credit score. Older accounts contribute to your credit history length, which is a positive factor in most scoring models.

Instead of closing accounts, keep them open and avoid using them unless absolutely necessary.

Why It Matters

Even after you're pre-approved, your lender may do a final credit check before closing. Any changes in your credit profile—new accounts, higher balances, missed payments—can result in a lower credit score or changes to your loan conditions.

Keeping your credit clean ensures that your approval stays intact and your closing goes smoothly.

Final Tip: Check in Before Making Changes

If you’re ever unsure about a financial move during the mortgage process, reach out. I’m always happy to advise on whether it’s safe to proceed—or better to wait.

📩 Have questions about keeping your credit clean during the homebuying process? Let’s chat and make sure your approval stays on track from start to finish.