The Biggest Mistakes Buyers Make After Going Under Contract in Royal Oak and Birmingham

Getting an offer accepted on a home in Royal Oak, Birmingham, Hazel Park, Berkley, or along the Woodward Corridor is a major milestone.

But what many buyers don’t realize is that the time between going under contract and closing is where mistakes can happen that impact the entire transaction.

Even small financial decisions during this phase can create complications with the loan approval process.

Lisa A. Mills with Signature by Lisa works with buyers throughout the Woodward Corridor and helps guide them through this stage to avoid issues that could delay or even jeopardize closing.

Why This Stage of the Process Matters

After a home goes under contract, the buyer’s file moves deeper into the lender’s underwriting process.

During this time, lenders often:

• re-verify employment
• review updated bank statements
• check for changes in credit
• confirm financial stability

Many buyers assume that once they are pre-approved, everything is set — but that is not always the case.

This stage requires consistency and careful decision-making.

Common Mistakes Buyers Make After Going Under Contract

There are several actions buyers should avoid during this phase, including:

• opening new credit cards
• financing a vehicle or large purchase
• moving money between accounts without documentation
• making large deposits that cannot be sourced
• changing jobs or employment structure

Even if these decisions seem small, they can impact how a lender views the buyer’s financial profile.

Watch: What Not to Do After Your Offer Is Accepted

In this video, Lisa A. Mills with Signature by Lisa, a real estate agent serving Royal Oak, Birmingham, and surrounding Woodward Corridor communities, shares guidance on what buyers should avoid after going under contract.

A Real Example from Royal Oak

Financial changes during the underwriting process can create unexpected issues if they are not properly communicated.

I’ve seen situations where buyers unintentionally created complications after going under contract.

In one case, a buyer received a large check from a family member and deposited it into their account without notifying their lender. During underwriting, updated bank statements were reviewed again, and the deposit had to be sourced and documented before the loan could proceed.

In another situation, a buyer opened a new charge card after their offer was accepted. That new line of credit triggered a review of their financial profile and created additional steps during the approval process.

These situations are avoidable, but they highlight how closely lenders review financial activity during this stage.

If buyers are planning to move money, receive funds, or make financial changes, it’s important to speak with their lender first so everything is properly documented and accounted for.

Why Communication with Your Lender Is Critical

One of the most important things buyers can do after going under contract is maintain open communication with their lender.

Before making any financial decisions, buyers should check with their lender to understand how those changes could impact their loan.

This includes:

• deposits
• transfers
• purchases
• credit activity

Clear communication helps avoid delays and keeps the transaction moving forward.

You can also read more about what happens after your offer is accepted here:

What Happens After Your Offer Is Accepted in Royal Oak and Birmingham

Preparation Before Writing an Offer Still Matters

Many of these issues can be avoided by preparing early in the process.

Buyers who understand their financial picture ahead of time are often better positioned to move through underwriting smoothly.

Why Pre-Approval Matters When Buying a Home in Royal Oak and Birmingham

Frequently Asked Questions About Buyer Mistakes After Going Under Contract

Can opening a credit card affect a home purchase?

Yes. Opening new credit can impact a buyer’s debt-to-income ratio and trigger additional review during underwriting.

Do lenders check financial information more than once?

Yes. Lenders often review updated financial documents before final approval.

Can large deposits delay closing?

They can if the source of funds is not clearly documented.

Should buyers talk to their lender before making financial changes?

Yes. It is always best to confirm with a lender before making any financial decisions during this stage.

Conclusion

The time between going under contract and closing is an important phase of the home buying process.

Across Royal Oak, Birmingham, Hazel Park, Berkley, and the Woodward Corridor, buyers who understand how their financial decisions can impact their loan approval are often better positioned to move through the process smoothly.

About the Author

Lisa A. Mills
Signature by Lisa | National Realty Centers
Powered by JMG Real Estate

Serving buyers and sellers throughout:

Royal Oak
Birmingham
Hazel Park
Berkley
Clawson
and communities along the Woodward Corridor

Follow Me on Instagram

Follow Me