Things to Avoid Before Buying a Home

Buying a home in the near future?

Here are some common mistakes to avoid during the home buying process to make sure your transaction goes smoothly!

Buying a home is one of the most exciting milestones in life, but it's also a financial process that requires careful planning. Many buyers don't realize that everyday decisions made before closing can directly impact their mortgage approval.

If you're planning to buy a home soon, here are some important things to avoid before buying a home so your transaction stays on track and stress-free.

1. Don't Make an Expensive Purchase

Once you begin the mortgage process, it's best to put major purchases on hold until after closing.

This includes:

• Vehicles or recreational toys
• Furniture and appliances
• Electronics
• Jewelry
• Large vacations or travel expenses

Why this matters:
Lenders closely review your credit score, debt-to-income ratio, and available cash reserves. Financing a big purchase with a credit card can lower your credit score or increase your monthly obligations. Paying cash for high-ticket items can also raise red flags if it significantly reduces your savings.

💡 Pro tip: Even if you've already been pre-approved, new purchases can change your financial profile and affect final loan approval.

2. Don't Change Jobs (If You Can Avoid It)

Employment stability is an important part of mortgage qualification. Lenders like to see a consistent work history, typically over the last two years.

Changing jobs can be okay in certain situations (especially if you're staying in the same field or earning more) but it should always be discussed with your lender first.

Why this matters:
Switching jobs during the home buying process may:

• Delay your loan approval
• Require additional documentation
• Trigger new income verification requirements

If a job change is unavoidable, communicate early so your lender can guide you through next steps.

3. Don’t Open New Credit Accounts

Opening new credit (such as a credit card, auto loan, or personal loan) can negatively affect your mortgage approval.

Why this matters:

• New credit inquiries can lower your credit score
• Additional monthly payments impact your debt-to-income ratio
• Lenders run a final credit check before closing

Even store credit cards or "0% interest" offers can cause issues. It's best to keep your credit profile exactly as it was when you were pre-approved.

4. Don't Switch Banks or Move Money Around

During the mortgage process, lenders typically require two to three months of bank statements for checking, savings, and other liquid assets.

Why this matters:
Mortgage lenders must verify the source of your funds to meet underwriting and fraud-prevention guidelines. Large or unexplained transfers between accounts - or switching banks entirely - can complicate this paper trail.

To avoid delays:

• Keep funds in the same accounts
• Avoid large deposits unless discussed in advance
• Document any necessary transfers

When in doubt, ask before moving money.

5. Don't Ignore Requests From Your Lender

Even after pre-approval, the mortgage process isn't finished. Your lender will continue to request updated documentation, such as:

• Bank statements
• Pay stubs
• W-2s or tax returns
• Letters of explanation

Why this matters:
Mortgage approvals are time-sensitive. Missing paperwork or delayed responses can:

• Slow down underwriting
• Delay your closing date
• Put your purchase contract at risk

Providing requested documents promptly helps ensure a smooth and on-time closing.

6. Don’t Assume Pre-Approval Means “Guaranteed”

A pre-approval is an important step… but it's not a final approval. Your loan must still pass underwriting and meet all conditions before closing.

That's why maintaining financial consistency is critical from application through closing day.

Preparing for Success as a Homebuyer

Avoiding these common mistakes can make a significant difference in how smoothly your home buying journey goes. The more proactive and informed you are, the fewer surprises you'll encounter along the way.

Want more guidance before buying a home?

• Download our free First Time Home Buyers Guide for step-by-step education and advice
• Explore our additional first-time homebuyer resources available on our website
• Reach out to our team with questions before making financial decisions

Being prepared doesn’t just help you get approved, it helps you buy with confidence.

Frequently Asked Questions About Buying a Home

Should I stop using my credit cards before buying a home?
You don't need to stop using them entirely, but it's important to avoid increasing balances, opening new accounts, or missing payments. Even small changes can impact your credit score and mortgage approval.

Can I change jobs while buying a house?
Changing jobs isn't always a dealbreaker, but it can complicate the loan process. Staying in the same field and maintaining stable income is important. Always talk to your lender before making employment changes.

Why do lenders care if I move money between accounts?
Mortgage lenders must document the source of all funds used in the transaction. Moving money between accounts can create extra paperwork and delay underwriting if the paper trail isn't clear.

Does being pre-approved mean my loan is guaranteed?
No. Pre-approval is an important first step, but final approval happens after underwriting. Financial changes made after pre-approval can still affect your loan.

What should I do if my lender asks for more documents?
Respond as quickly as possible. Delays in providing documentation are one of the most common reasons closings get pushed back.