What Not to Do During the Home Buying Process
Buying a home is one of the biggest financial decisions you'll ever make. It’s exciting—but it also comes with risks. Even a small mistake can jeopardize your chances of closing on your dream home. To make sure you stay on track, here’s a list of the most common pitfalls to avoid during the home buying process.
1. Don’t Make Major Financial Changes
Once you've applied for a mortgage, lenders want to see consistency. Avoid:
Changing jobs or becoming self-employed
Making large purchases like cars or furniture
Opening new credit cards or taking out new loans
Why it matters: These actions can change your debt-to-income ratio and credit score, which could lead to loan denial or require a re-approval process.
2. Don’t Miss Bill Payments
On-time payments are crucial to keeping your credit score in good shape. Missing a payment—even by a few days—can damage your score significantly.
Tip: Set up automatic payments or reminders to stay current on all bills during the home buying process.
3. Don’t Make Large Deposits Without Documentation
Lenders closely monitor your finances during underwriting. Large or unusual deposits in your bank account will need to be explained and documented.
Solution: Keep clear records of all financial transactions and avoid moving large sums of money around unless necessary.
4. Don’t Skip the Pre-Approval Process
Many buyers jump into house hunting without getting pre-approved, but that can backfire.
Why pre-approval matters:
It helps define your budget
It shows sellers you’re a serious buyer
It speeds up the closing process
5. Don’t Neglect Your Credit
Your credit will be checked again right before closing. Avoid:
Co-signing loans for others
Closing credit accounts
Making late payments
Even small credit score changes can affect your interest rate or approval.
6. Don’t Overextend Your Budget
It’s tempting to stretch your finances for a “perfect” home, but that can create long-term financial stress.
Stick to what you can comfortably afford—not just what the bank approves.
7. Don’t Skip the Home Inspection
Waiving the home inspection might make your offer more attractive, but it also leaves you vulnerable to costly surprises.
Always hire a professional inspector to assess the property’s condition and protect your investment.
8. Don’t Ignore Your Agent’s Advice
Real estate agents are there to guide you and help avoid common missteps. Make sure to lean on their experience, especially during negotiations, inspections, and closing.
Final Thoughts
The home buying process can be emotional and overwhelming, but avoiding these mistakes will help ensure a smooth path to homeownership. Stay organized, communicate openly with your lender and real estate agent, and make decisions with your long-term financial health in mind.
When in doubt, pause and ask: “Will this hurt my ability to close on this home?” If you’re unsure, consult a professional before making a move.
