Buying a home is an exciting journey—it’s probably one of the biggest purchases you’ll ever make. But let’s be real: it can also be overwhelming. Between managing finances, paperwork, and negotiations, there’s a lot to juggle (even more reason to hire an agent!).

What you might not realize is that certain decisions (even seemingly small ones) can throw a wrench in the process. From financial missteps to timing errors, the wrong move could delay your purchase or even cost you the home of your dreams. To make things easier, let’s dive into what not to do when you’re buying a house.

1. Avoid Changing Jobs

Lenders prioritize financial stability when evaluating mortgage applications. A sudden job change can disrupt your loan approval process, as it raises concerns about your ability to maintain consistent income.

If a career move is unavoidable, discuss it with your lender in advance. In some cases, a transition within the same industry or an increase in income may not negatively impact your application, but timing is crucial.

2. Skip the Big Purchases for Now

Large purchases—such as a new car or expensive furniture—can significantly affect your credit score and debt-to-income ratio. These factors are critical to lenders when determining your loan eligibility and terms.

To keep your financial profile stable, delay any significant spending until after you move in. This ensures that your loan approval remains unaffected.

3. Stay Connected

Throughout the home-buying process, your lender and real estate agent may need your prompt attention for time-sensitive requests, such as signing documents, providing additional information, or approving key decisions.

Missing important communications can lead to delays or missed deadlines. Maintain open lines of communication and check your email and phone regularly to stay updated on the progress of your transaction.

4. Don’t Move Money or Switch Banks

Switching banks or transferring large amounts of money between accounts may seem harmless, but lenders closely monitor your financial activity. Sudden changes can complicate the verification process and raise concerns about the source of your funds.

If you need to move money for a legitimate reason, consult with your lender first to ensure proper documentation and avoid unnecessary complications.

5. Avoid Late Payments

Your credit score is a critical component of your loan application. Even one late payment on a credit card, loan, or utility bill can lower your score and signal financial instability to lenders.

Set reminders or automate payments to ensure all bills are paid on time. Maintaining a strong credit history is essential for securing favorable loan terms.

6. Say No to Co-Signing Loans

Co-signing a loan for someone else increases your debt obligations, which lenders factor into your overall financial profile. Even though you’re not the primary borrower, the liability appears on your credit report and affects your debt-to-income ratio. To avoid jeopardizing your mortgage approval, postpone co-signing for others until after you’ve closed on your home.

7. Don’t Close Old Credit Accounts

Closing credit accounts may seem like a responsible move, but it can harm your credit score. Long-standing accounts contribute positively to your credit history, and reducing your available credit increases your credit utilization ratio—a factor lenders assess closely. Keep existing accounts open and in good standing to maintain a strong credit profile throughout the home-buying process.

8. Avoid Draining Your Savings

The costs of buying a home extend beyond the down payment. You’ll also need funds for closing costs, moving expenses, and potential unexpected repairs after you move in. Draining your savings for non-essential expenses could leave you financially vulnerable.

Lenders also look at your cash reserves as a sign of financial stability. Having adequate savings can improve your loan approval odds and help you handle any surprises that arise during the process.

9. Don’t Assume Pre-Approval Means Guaranteed Approval

Getting pre-approved for a mortgage is an important step, but it doesn’t guarantee final approval. Lenders will re-evaluate your financial situation before closing, so maintaining consistency is essential.

Any significant changes—such as new debt, job changes, or late payments—could jeopardize your loan. Treat your pre-approval as conditional and focus on keeping your financial profile stable until the process is complete.

10. Avoid Overlooking Additional Costs

When budgeting for a home, it’s easy to focus solely on the purchase price and down payment. However, other essential costs can add up quickly if not accounted for. For instance, if the home is part of a homeowners association (HOA), you’ll need to factor in monthly or annual fees, which can vary widely depending on the neighborhood.

Additionally, it’s a good idea to research the average utility costs for the home. Some properties, especially older ones or homes with outdated systems, may be less energy-efficient, leading to higher utility bills than you might expect.

Another cost to consider is a home warranty. This optional coverage can help protect you from unexpected repair expenses during your first year of ownership. If the HVAC system breaks down or a major appliance needs replacement, a home warranty could save you thousands of dollars.

Taking the time to review these potential expenses will help you build a more accurate budget and ensure you’re financially prepared for homeownership.

11. Don’t Rush the Process

Buying a home is a significant investment, and rushing decisions can lead to costly mistakes. Whether it’s choosing a home, negotiating terms, or securing financing, take the time to thoroughly evaluate your options. Work closely with your real estate agent and lender to ensure you’re making informed decisions at every step of the process.

The Homebuyer’s Path to Success

The home-buying process is an exciting journey, but it requires careful planning and discipline. Avoiding these common missteps can help you stay on track and ensure a successful transaction.

By maintaining financial stability, staying accessible, and consulting with real estate and lending professionals, you’ll be well-prepared to navigate the complexities of buying a home. Take the time to make informed decisions, and soon you’ll be settling into the home of your dreams.

Looking for expert guidance on your home-buying journey? Reach out today to get personalized advice and support every step of the way.