🏡 The 10 Commandments of Buying a Home (Avoid These Deal-Breaking Mistakes!)
Welcome to the ultimate homebuyer’s guide — the 10 Commandments of Buying a Home.
If you’re preparing to buy a home, stop scrolling. This list could save you thousands of dollars, months of stress, and possibly even your dream property.
Whether you're a first-time buyer or a seasoned homeowner looking to make your next move, these commandments will guide you through the mortgage and homebuying process without falling into the traps that derail so many others.
Let’s dive in.
📜 Commandment #1: Thou Shalt Not Change Jobs, Become Self-Employed, or Quit Thy Job
Stability is key in the eyes of a mortgage lender. Even if you're moving to a better-paying job, that change can reset your loan approval process — especially if your pay structure changes (salary to commission, W2 to 1099, etc.). Lenders want to see a consistent income history to assess your ability to repay a loan.
What to Do Instead:
Wait until after closing to switch jobs. If you must change jobs during the process, talk to your lender immediately. They may require updated employment verification, new pay stubs, or additional documentation that could delay your closing.
✅ Pro Tip: Lenders typically require at least 30 days of pay stubs for new jobs and two years of stable income for self-employed borrowers. Plan accordingly.
🚗 Commandment #2: Thou Shalt Not Buy a Car, Truck, or Van — Or You May End Up Living in It
That shiny new car might be tempting, but adding a car loan increases your monthly debt and messes with your Debt-to-Income (DTI) ratio — one of the biggest factors in mortgage approval.
Why It Matters:
Even if the car has a 0% interest rate, lenders still factor the monthly payment into your DTI. This can drastically reduce how much house you qualify for — or knock you out of eligibility altogether.
✅ Pro Tip: If your current car gets you from Point A to B, keep it until after your mortgage is finalized. Your new driveway can welcome a new car later.
💳 Commandment #3: Thou Shalt Not Use Credit Cards Excessively or Fall Behind on Payments
Your credit score is like your financial fingerprint — and lenders look at it closely. High credit card balances increase your utilization rate, which can lower your score fast. Even if you pay off the balance later, the damage may already be done.
Also Critical:
Late payments (even just 30 days) can tank your credit by 90+ points — and that can wreck your homebuying chances.
✅ Pro Tip: Keep credit utilization below 10% and automate payments. Avoid using credit for anything other than necessities during the loan process.
💰 Commandment #4: Thou Shalt Not Spend Money Set Aside for Closing Costs
Once you're under contract, your lender will track your finances closely. If money starts moving around or disappears from your closing account, it raises red flags. Lenders want to see that the funds are seasoned — meaning they’ve been sitting untouched for at least 60 days.
Common Mistake:
Spending from your closing account to buy furniture or book a vacation may seem harmless, but it can delay or derail your loan approval.
✅ Pro Tip: Create a dedicated, untouched savings account for closing funds. Don’t move money in or out without talking to your lender.
📄 Commandment #5: Thou Shalt Not Omit Debts or Liabilities from Thy Application
Lenders run detailed credit and background checks — they’ll uncover every financial obligation, even if you don’t disclose it. Hiding student loans, car payments, or child support will hurt your credibility and could delay your loan or result in denial.
What You Should Do:
Be transparent. Disclosing everything up front allows your lender to properly assess your qualifications and build a strategy that works in your favor.
✅ Pro Tip: Full disclosure = faster, smoother approval. Don’t try to “outsmart” the underwriter.
🛋️ Commandment #6: Thou Shalt Not Buy Furniture on Credit Before Closing
Sure, you want your new home to look amazing — but financing furniture before your mortgage closes is a no-go. Opening a store credit card or personal loan creates new debt, inquiries, and changes your credit profile.
The Problem:
New debt lowers your credit score and increases your DTI — two key approval metrics.
✅ Pro Tip: Make a wishlist, not a purchase. Wait until the ink is dry and the keys are in hand before shopping.
🕵️ Commandment #7: Thou Shalt Not Open or Apply for New Credit
Every credit inquiry can ding your score and trigger lender scrutiny. Even “harmless” credit checks — like applying for a department store card or upgrading your phone — can result in underwriting delays.
What Happens:
Lenders may require a letter of explanation for each inquiry. Too many, and they’ll re-pull your credit — which could change your interest rate or cause denial.
✅ Pro Tip: Freeze your credit or notify your lender you won’t apply for anything new during the process.
💵 Commandment #8: Thou Shalt Not Make Large Deposits Without a Paper Trail
Depositing large sums of cash, PayPal transfers, or Venmo funds into your bank account without documentation raises flags. Lenders want to ensure the funds you’re using aren’t borrowed or laundered.
Even Gifts Must Be Documented:
If a family member gives you money, you’ll need a signed gift letter — and sometimes their bank statement — to prove it’s not a loan.
✅ Pro Tip: Always talk to your lender before making large deposits. Keep records of everything.
🏦 Commandment #9: Thou Shalt Not Change Bank Accounts
Switching bank accounts during underwriting is a nightmare for documentation. It adds unnecessary complications as lenders now have to verify both old and new accounts, and re-trace all your financial activity.
Why It’s a Problem:
Underwriters don’t like anything that creates uncertainty. The more account changes you make, the more questions they ask.
✅ Pro Tip: Use the same account for deposits, reserves, and closing funds from start to finish.
🤝 Commandment #10: Thou Shalt Not Co-Sign Loans for Others
Even if you’re just trying to help a loved one, co-signing creates a liability on your credit report. If the borrower misses a payment, your credit takes the hit. Even if they do pay, the new loan still counts against your DTI.
Bottom Line:
Lenders treat co-signed loans as your debt. Period.
✅ Pro Tip: Stay laser-focused on your own financial goals until you’ve closed. Helping others can wait — your home is your top priority right now.
🎯 Final Thoughts: Knowledge Is Power — Don’t Buy a Home Without It
Buying a home is exciting, but it’s also a high-stakes process where one small mistake can cost you big. By following these 10 commandments, you’ll move forward with confidence, clarity, and control — instead of stress and setbacks.
Need help buying a home or have questions about the process?
I’m here to guide you every step of the way — from pre-approval to keys in hand.
📞 Contact me today for a personalized homebuyer consultation.
Let’s make your dream home a reality — the smart way.