Avoid These Common Mistakes to Keep Your Financing—and Your Dream Home—on Track
When you’re buying a home, everyone wants to tell you what to do—get pre-approved, find a great agent (👋🤠), tour the neighborhoods, write a strong offer.
But let’s flip the script for a moment. Because what you shouldn’t do is just as important.
At Big Frontier Group, we’ve seen deals fall apart at the finish line because of small decisions that had big consequences. So whether this is your first home or your next investment, here’s your official “don’t list” to keep your purchase moving smoothly from pre-approval to closing.
1. Don’t Overestimate What You Can Afford
Before you start falling in love with listings, get crystal-clear on your numbers.
→ Pro Tip: Your debt-to-income ratio (DTI) should generally stay below 33%. That includes student loans, car payments, and other obligations—not Netflix and electric bills.
Use a budgeting app like Mint or YNAB to get a sense of where your money goes. Factor in travel, hobbies, and how you actually live. Being realistic helps avoid heartbreak—and financial stress.
2. Don’t Get Emotionally Attached
We know—it’s hard not to get excited. But homes fall through all the time: failed inspections, bidding wars, financing hiccups.
Approach each home with high intention, low attachment. You’ll save yourself a lot of stress and stay sharp during negotiations.
3. Don’t Make Large Purchases
Now is not the time to buy that new SUV or finance a dreamy sectional.
Your mortgage pre-approval is based on your current financial snapshot. Changing that—by draining savings or taking on new debt—can sink your approval or lower your loan amount.
4. Don’t Move or Deposit Large Sums of Cash
Lenders scrutinize your bank history. Large, unexplained deposits or withdrawals are red flags.
If Grandma gifts you part of your down payment—amazing!—but she’ll likely need to sign a letter confirming it’s a gift and not a loan. Keep records and ask your lender before moving money around.
5. Don’t Apply for New Credit
That 15%-off furniture coupon isn’t worth it.
Every time you apply for credit, it hits your credit score and increases your liabilities. That includes store cards, auto loans, and “buy now, pay later” offers.
6. Don’t Co-Sign a Loan
Even if it’s for someone you trust, co-signing counts as your debt in the lender’s eyes. If the other party misses payments, your credit—and your loan chances—take the hit.
7. Don’t Finance Anything
That dreamy stainless-steel fridge can wait.
Financing anything prior to closing can affect your loan eligibility. Until the keys are in your hand, act like you’re broke and allergic to debt.
8. Don’t Switch Jobs (Yet)
Changing jobs, quitting, or launching your dream business can delay or derail your loan.
Lenders want to see stable employment history. If a change is in the works, wait until after closing to make the leap—or talk with your lender first.
9. Don’t Miss a Loan or Bill Payment
One 30-day late payment can drop your credit score by 100+ points.
Stay on top of your bills, even if you’re busy traveling, caregiving, or moving. Set reminders. Automate payments. Do whatever it takes.
10. Don’t Switch Banks
Stick with your current bank so your lender can see at least 60 days of consistent statements.
A flashy $300 signup bonus from another bank isn’t worth delaying your loan process.
🚪 The Bottom Line
A mortgage isn’t just about what you can afford—it’s about proving to a lender that you’re low-risk and stable. Every financial move you make while under contract (and even before) is under a microscope.
So remember:
✔️ Stay steady
✔️ Avoid major financial changes
✔️ When in doubt, call your lender or your agent (that’s us!)
At Big Frontier Group, we’ll guide you through the process, the paperwork, and yes—even the don’t-do list—so you can land that dream home and keep your peace of mind.
Questions about preparing for homeownership? We’re here to help. Let’s talk.