Top 5 Homebuying Mistakes to Avoid

Buying a home is one of the most important milestones you’ll ever reach in life. It can also be overwhelming if you’re not sure what to expect. As a Mortgage Loan Officer, I’ve seen firsthand how a few common missteps can slow down the process or add unnecessary stress for someone buying a home.

If you’re planning to buy a home soon, here are the top five mistakes to avoid. This way, you can make the most informed decisions possible and celebrate your new home with joy, not stress, when the day comes.

1. Don’t assume you need a 20% down payment

The truth is, most buyers don’t put 20% down and you may not need to, either. There are so many programs out there for buyers. Many offer lower down payment options, and some even allow you to buy with no money down at all. Depending on your situation, you may be able to pair loan programs with grant options, or down payment assistance resources. Since every buyer has a unique financial picture, it is helpful to work with a knowledgeable lender can help you navigate all the possibilities.

2. Don’t skip pre-approval before you start shopping

It’s important to take the time to get pre-approved for a mortgage before you go out shopping for a new home. You’ll know what homes are in your price range, and it’ll speed up the process.

Imagine this: you walk into an open house, and the minute you step inside, you know it’s the one. It’s exactly what you’ve been looking for. Another buyer is touring at the same time, but they leave quickly, because they’re already pre‑approved and ready to write an offer.

You, on the other hand, decide to rush home and get pre‑approved online. But once you start the process, you realize it’s not instant. Maybe your employer needs to complete a verification form. Maybe your application needs a bit more review. What you expected to take an hour could take longer, and while you’re waiting, that other buyer submits their offer. And just like that, you lose out on what could have been your perfect home.

That’s why getting pre‑approved before you start shopping matters. A pre‑approval letter shows sellers you’re serious, qualified, and ready to act quickly. In today’s market, a strong, local, pre‑approval can be the difference between winning the home and watching someone else move into it. If the right home finds you, you don’t want anything slowing you down.

3. Don’t throw away your deposit receipts

Whether it’s a check you deposited, a cash gift you received, or a transfer from another account, don’t throw away those receipts. Your lender is required to “source” your funds for your down payment and closing costs and will typically look back up to 2 months. That means they need to confirm where the money came from and verify that it’s legitimate, traceable, and acceptable under lending guidelines. Sudden or undocumented deposits can slow down your approval or even require additional paperwork at the last minute. 

By saving your deposit receipts and keeping good records, you can help ensure a less stressful loan process. It’s a small step that makes a big difference. 

4. Don’t change jobs

Repeat after me “I will not change jobs without checking in with my lender.” Now, repeat it again. While some job changes are perfectly fine, others can create major setbacks in the mortgage process if your lender isn’t aware ahead of time.

For example, moving from a W2 salaried position to being paid on a 1099 as an independent contractor can be a big deal. Lenders typically need a full two year history of self-employment income, so a sudden shift to contracted work may delay your ability to qualify. Similarly, switching from a stable salary to a variable hourly schedule, or to a job where your income depends heavily on tips or commissions, can also create a “seasoning” period of 12-24 months, to ensure the income stability.

Even positive changes, like a promotion or a higher paying job, will require updated paperwork and verification. Without advance notice, this can slow things down just when you need everything to move quickly.

Before making any job change, big or small, check in with your lender. A quick conversation can help you understand how the move might affect your loan approval and prevent any surprises during the homebuying process.

5. Avoid making any changes to your credit

This is another change that you’ll want to check with your lender about before you proceed. Just like switching jobs, making changes to your credit can impact what you might qualify for, and sometimes make the difference on if you qualify at all.

When you apply, a lender will look closely at your credit score, credit history and your debt-to-income ratio. Taking on a new debt, like a car loan or personal loan, can change those numbers quickly.

Buying a new car may seem like a harmless upgrade, but that new monthly payment could reduce the amount of home you qualify for or accidentally push your ratios over lending limits. Even consolidating debt, closing accounts, or paying off loans unexpectedly can affect your credit score or alter the credit profile your lender originally used to approve you. These changes almost always require updated documentation and sometimes even a new approval.

While you’re shopping for a new home, or in the planning phases, pause any credit changes until you have spoken with your lender. It is much easier to prevent surprises than to fix them mid-process.

Final thoughts

Perhaps the most valuable step in the entire process is choosing a lender you trust, someone local, experienced, and willing to take the time to understand your budget, your goals, and your questions. Homebuying is a journey, and sometimes it takes time. Choosing the right lender means you’re never navigating the process alone.