Why do people say not to buy furniture before closing? What's the actual risk?

Why can't I buy furniture before closing?

You want to know why lenders warn against buying furniture before closing and what could actually go wrong. Lenders check your credit and finances multiple times during the mortgage process, and major purchases can change your financial picture in ways that affect loan approval.

Buying furniture typically involves opening new credit accounts or using existing credit cards for large purchases. Both actions can lower your credit score temporarily and increase your debt-to-income ratio. Lenders pull your credit again right before closing to verify nothing has changed since your initial approval. A lower credit score might push you into a higher interest rate tier, and a higher debt-to-income ratio could cause the lender to turn down your loan entirely.

The timing matters because mortgage approvals are conditional. Even if you're pre-approved, the lender can withdraw that approval if your financial situation changes. New monthly payments from furniture financing count against your debt-to-income ratio, and hard credit inquiries from store credit applications can drop your score by several points.

Wait until after closing to make large purchases or open new credit accounts. If you need furniture immediately, consider paying cash or using existing credit minimally. Share any planned purchases with your lender beforehand so they can walk you through how those purchases might affect your approval.