Best Practices for Buyers During the Contract Period: What Not to Do to Protect Your Loan Approval

Buying a home in Winchester, VA, the Shenandoah Valley, or the Eastern Panhandle of West Virginia is an exciting journey—but once you’re under contract, your actions can directly affect whether your loan is approved. Lenders review your financial profile all the way up to closing, and even small changes can cause delays or, in worst cases, a denial.

Here are the top best practices and the things buyers should avoid to keep the loan process smooth and stress-free.

1. Avoid Major Purchases — No New Cars, Furniture, or Appliances

It’s tempting to start planning for life in your new home, but big-ticket purchases can alter your debt-to-income ratio (DTI) and cause lenders to second-guess your approval.
Even “0% financing” deals still count as debt, so keep your spending steady until after closing.

Best Practice:
Pause all major purchases until you have keys in hand.

2. Don’t Open or Close Credit Accounts

Any changes to your credit profile—new credit cards, personal loans, or closing existing accounts—will trigger a new credit pull.

Why it matters:
Your credit score, credit history, and available credit all influence underwriting approval.

Best Practice:
Stay financially “boring.” No new accounts, no account closures, no credit pulls.

3. Avoid Large Cash Deposits or Unverified Transfers

Lenders must verify the source of all funds used for your down payment and closing costs. Large, unexplained deposits can create delays or trigger a denial if the source cannot be documented.

This is especially important in regions like Winchester, Shenandoah Valley, and the Eastern Panhandle where USDA, FHA, and VA loans are popular and documentation is tight.

Best Practice:
Talk to your lender before moving money around. Keep bank activity stable and easily traceable.

4. Don’t Change Jobs Without Speaking to Your Lender

Not all job changes are harmful, but lenders must re-verify employment before closing. Switching industries, taking a lower-paying position, or becoming self-employed mid-contract can derail the loan.

Best Practice:
If a job change is unavoidable, notify your lender and your Realtor immediately so we can plan ahead.

5. Avoid Missing Any Payments

One late payment—even on a small bill—can drop your credit score significantly. Some lenders even perform “credit refreshes” right before settlement.

Best Practice:
Keep everything paid on time or early during the contract period.

6. Don’t Co-Sign for Anyone—Even Temporarily

Co-signing adds new debt and liability to your credit profile. Even if the primary borrower promises to pay, the lender will count it against you.

Best Practice:
Do not co-sign anything until after closing.

7. Avoid Making Undocumented Venmo/Zelle Transactions for Earnest Money or Down Payments

Digital payment apps may not provide the level of documentation lenders require. For earnest money and deposits, always use verifiable methods like bank transfers or cashier’s checks.

Best Practice:
Use clean, traceable sources for all real estate-related payments.

8. Don’t Skip Communication With Your Lender or Agent

The Winchester–Shenandoah Valley–Eastern Panhandle markets often involve rural properties, USDA zones, well/septic systems, and unique appraisal requirements. Quick communication is crucial.

Best Practice:
Share updates immediately—job changes, income changes, gift funds, credit issues, delays, etc.

9. Avoid Taking Out New Insurance Policies or Making Drastic Changes

Believe it or not, some insurance pulls can affect your credit or raise underwriting questions.

Best Practice:
Hold steady until after settlement.

10. Stay Financially Stable Until the Keys Are in Your Hand

The safest mindset: “If it changes my finances, credit, income, job, or bank account—ask first.”
Your lender and I are here to guide you through each step so nothing jeopardizes your purchase.