Thinking of buying a home? Here’s what not to do (Seriously, don’t.)
Posted
If you’re planning to buy a home, here is a checklist of things you absolutely shouldn’t do unless you want to sabotage your own deal:
Don’t buy a new car—or a house full of furniture. Yes, that showroom sofa is calling your name. But adding big purchases to your credit report right before (or during) the mortgage process can mess with your debt-to-income ratio.
Don’t make large cash deposits or move money around. Lenders are like detectives—they want to know where your money is coming from. Large, unexplained deposits raise red flags and can delay your approval.
Don’t apply for new credit or increase credit limits. Now’s not the time to open a new store card “just to save 15%.” Every credit inquiry affects your score and can change your mortgage terms—or derail them entirely.
Don’t co-sign for anyone. Even if you love your cousin dearly, co-signing means you’re responsible for that debt. Lenders see it as your obligation, and it can reduce your borrowing power.
Don’t fall behind on payments. Late payments—even by a day—can drop your credit score like a rock. Set reminders, automate bills, do whatever it takes to keep your record squeaky clean.
Don’t change jobs or careers. Thinking of launching your dream food truck? Amazing. But maybe wait until after closing. Lenders prefer stability and want to see a reliable income history.
Don’t change banks.
Switching banks mid-approval is a logistical nightmare. Lenders are already knee-deep in your finances—don’t make them hunt for paperwork in a new institution.
Don’t close credit cards or max them out. Credit utilization is key. Maxing out cards or closing old ones can hurt your score and mess with your approval odds.
Don’t forget about closing costs. It’s not just the purchase price—closing costs are real, and they add up. Make sure you’ve budgeted for them so there are no ugly surprises.
