What Not to Do When Buying a Home

When buying a home, avoid making major financial changes before closing. That means don’t change jobs, don’t open new credit accounts, don’t make large purchases, and don’t stop paying bills on time. These missteps can hurt your mortgage approval and delay — or even cancel — your closing.

The Biggest Mistakes to Avoid When Buying a Home

1. Don’t Change Jobs or Careers

Lenders want to see stable income. Switching jobs, especially into a new field, can raise red flags and stall your approval.

Don’t worry about sounding professional. Sound like you. There are over 1.5 billion websites out there, but your story is what’s going to separate this one from the rest. If you read the words back and don’t hear your own voice in your head, that’s a good sign you still have more work to do.

2. Don’t Open New Credit Cards or Loans

That “0% APR furniture card” might sound tempting, but new credit inquiries and balances can lower your score or increase your debt-to-income ratio.

3. Don’t Make Large Purchases

Buying a car, new appliances, or even booking an expensive vacation before closing can drain your assets and signal higher risk to your lender.

4. Don’t Deposit Large Unverified Sums of Cash

Lenders need to track your funds. Large unexplained deposits can require extra paperwork or delay underwriting.

5. Don’t Miss Any Payments

Even one late payment on a credit card, auto loan, or student loan can drop your credit score right when you need it the most.

6. Don’t Co-Sign Loans for Others

Even if you’re just “helping a friend,” co-signing adds new debt to your profile, which can affect your approval.

7. Don’t Switch Banks or Move Money Around Unnecessarily

Consistency is key. Moving money between accounts can cause confusion and create more documentation requests from your lender.

8. Don’t Ignore Your Pre-Approval Budget

Just because you’re pre-approved up to a certain amount doesn’t mean you should spend it all. Stay within your comfort zone and leave room for closing costs and future expenses.

FAQs

• Why can’t I make big purchases before closing?
  Because it can change your debt-to-income ratio, which lenders monitor up until closing.

• How long should I wait after closing to make financial changes?
  Once your loan has closed and funded, you’re usually safe. Many buyers wait a few weeks just to be cautious.

• Can changing jobs ruin my loan approval?
  Not always, but it can delay underwriting. If it’s unavoidable, talk to your lender first.

Buying a home is exciting, but it’s also delicate. Until your keys are in hand, keep your finances steady: don’t change jobs, don’t make big purchases, and don’t open or close credit accounts. Staying consistent helps ensure your loan closes smoothly and on time.