I'm in the process of buying my first home and I've gotten lots of advice that has been unclear and hard to work with. One of the clearer pieces of advice I've gotten is to not make big financial moves between being approved for a mortgage and closing on a house. Big changes to finances can (as I've been told, at least) negatively affect, or even blow up, an already-approved mortgage loan before closing.
That makes sense to me, but I have not been able to get much detail about what makes a financial decision big enough to be a problem, or what I can do during this time. I'm not looking to spend any money, but would like to know my options to access cash if I need it (buying the house is taking up most of my liquidity, which makes me anxious). I am interested in things like:
- Can I sell stocks or mutual fund shares?
- Can I take a loan from my 401(k)?
Can I do the above prior to closing, or are they likely to cause problems with my mortgage loan?