4 Things You Should Never Do When Buying a House!

Deal Killers: 4 Things You Should Never Do When Buying a House!

Buying a home is one of the biggest financial decisions you'll ever make. If you’re in the process of purchasing a house—whether you’re pre-approved, under contract, or waiting to close—there are a few critical mistakes that can kill the deal and leave you without your dream home.

Here are four deal-killing mistakes you must avoid when buying a house.

1. Don’t Quit Your Job or Change Careers

Your mortgage approval is based on your income and employment history. Lenders want to see stable employment because it reassures them that you can consistently make your mortgage payments. If you quit your job, switch careers, or even change employment types, such as from salaried to commission-based, your lender may reassess or deny your loan. What to Do Instead Stay at your current job until after closing. If you must switch jobs, consult your lender first. Avoid gaps in employment, as they raise red flags for lenders.

2. Don’t Buy a New Car or Any Big-Ticket Item on Credit

It is tempting to celebrate your new home by upgrading your car or making other major purchases, but big expenses can disrupt your mortgage approval process. Taking out a car loan or financing large items increases your debt-to-income ratio, a key factor lenders use to determine if you can afford a mortgage. A sudden increase in debt could disqualify you from the loan. What to Do Instead Wait until after closing to make big purchases. Avoid financing anything new, including furniture, appliances, or vacations. Stick to your normal spending habits to keep your financial profile stable.

3. Don’t Open New Credit Card Accounts

While it might seem harmless to open a new store credit card or take advantage of a limited-time offer, doing so can lower your credit score and create issues with your mortgage approval.

Opening new lines of credit triggers hard inquiries on your credit report, which can drop your credit score just when your lender is finalizing your loan. It can also signal financial instability to underwriters.

What to Do Instead

Avoid new credit applications while waiting to close on your home.
Keep your credit usage low and pay bills on time to maintain your score.
If a lender pulls your credit and sees new accounts, they might recalculate your loan terms or even deny it.

4. Don’t Accept Large Deposits Without Approval

Many homebuyers receive financial gifts from family members to help with down payments and closing costs. While this is allowed, undocumented deposits can create problems with your mortgage approval.

Lenders must source every deposit to ensure it is not an undisclosed loan. Large, unexplained deposits in your bank account can trigger red flags, delaying or even canceling your loan.

What to Do Instead

Talk to your lender before accepting large deposits.
Use a gift letter, provided by your lender, to verify that any financial gift is not a loan.
Keep your financial records clean and transparent throughout the process.

Final Thoughts: Stay Financially Stable Until You Close

Buying a home requires financial discipline from the moment you get pre-approved until the day you get the keys. Any major changes to your job, spending habits, or credit profile can jeopardize your loan approval and prevent you from closing on your new home.

Recap: Four Deal Killers to Avoid

1. Quitting your job or switching careers
2. Financing a new car or major purchases
3. Opening new credit cards or taking out loans
4. Accepting large, undocumented deposits
   
   By avoiding these mistakes, you will keep your home purchase on track and ensure a smooth closing process.
   
   Looking to Buy a Home? You Can Do It—You Just Need a Plan!
   
   Buying a home does not have to be overwhelming. Avoiding these deal-killing mistakes is just part of the process, and with the right plan, you will be unlocking the door to your new home in no time.
   
   I am here to help you navigate the home-buying journey, keep your mortgage on track, and make sure you get to the closing table with confidence.
   
   Call or text me at 912-844-9000
   Email: edyannett@gmail.com
   Visit: www.myhomesavannah.com
   
   You can do it—you just need a plan. Let’s get started today.