The Ten Commandments of Homebuying: What Not to Do

This blog will discuss the Ten Commandments of what not to do when shopping for a home. It is crucial to follow these Commandments to avoid jeopardizing your mortgage application after it has been approved and is ready to close.

Commandment 1: Thou Shall Not Change Jobs

Changing jobs, becoming self-employed, or quitting your job can significantly impact your ability to purchase a home. Any changes to your employment status must be incorporated into your mortgage application. Depending on the type of job change, the new income may not even be considered by lenders.

Commandment 2: Thou Shall Not Buy a Vehicle

Adding an auto loan to your mortgage application can affect your affordability numbers. To be fully approved, you’ll need to update your mortgage application. Adding any type of vehicle loan will decrease the amount of mortgage you can afford.

Commandment 3: Thou Shall Not Use Credit Cards Excessively

Accumulating debt with credit cards can harm your mortgage application. If you have run up credit card balances or haven’t been paying them off, it can lead to a drop in your credit score, which is a red flag for lenders.

Commandment 4: Thou Shall Not Spend Money Set Aside for Closing

It is essential to leave the money you have saved for closing costs untouched. You’ll need that money at closing to pay for lawyers, taxes, potential land transfer tax, and other closing expenses.

Commandment 5: Thou Shall Not Omit Debts or Liabilities

Leaving out debts or liabilities from your mortgage application will only hurt you in the long run. Lenders will discover all your debts through documentation. Omitting them puts you at potential risk in the financing process, which could cost you money.

Commandment 6: Thou Shall Not Buy Furniture

Financing furniture before closing on the property can put your mortgage application at risk. Many first-time homebuyers are excited to furnish their homes but may not have funds available after the down payment and closing costs. Financing furniture means adding it to the mortgage application.

Commandment 7: Thou Shall Not Originate Credit Inquiries

Shopping around for credit and having your credit pulled can temporarily decrease your credit score. Lenders see this as a sign of potential financial hardship, so it’s best to avoid getting your credit pulled during the mortgage application process.

Commandment 8: Thou Shall Not Make Large Deposits Without Approval

Any large deposits into your bank account can raise red flags for lenders. It is crucial to communicate with your mortgage agent and obtain approval for any significant deposits to avoid the need for additional documentation.

Commandment 9: Thou Shall Not Change Bank Accounts

Changing bank accounts during the mortgage application process requires updating documentation, which can delay the approval process. It’s best to avoid changing bank accounts until the mortgage application is finalized.

Commandment 10: Thou Shall Not Co-sign a Loan

Co-signing a loan for someone else will result in the debt being incorporated into your mortgage application. This will significantly decrease the mortgage amount you can be approved for.


Following these Ten Commandments will provide guidance on what not to do when searching for a home. If you have any questions about mortgage financing, feel free to reach out to my office at 519-250-4848 and either myself or one of my team members will be happy to help!

Thanks for reading, have a great day!

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