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That Can Derail Your Mortgage One of the most common—and completely avoidable—mistakes home buyers make is committing credit score sins during the mortgage process. These seemingly innocent actions can lower your score, increase your interest rate, or even cause your loan to be denied just days before closing. Here’s what you need to know to stay safe. How Mortgage Lenders Evaluate You When you apply for a mortgage, the lender takes a snapshot of your finances at that moment. They review:
- Credit score
- W-2s and income verification
- Work history
- Assets and savings
- Debt-to-income ratio
Everything is checked again during underwriting—often with a second credit pull shortly before closing. Any sudden changes can raise red flags. The 4 Biggest Credit Score Sins to Avoid During the Home-Buying Process Do not do any of these while your loan is in progress:
- Open new lines of credit — No new credit cards, no new lines of credit at a bank or credit union.
- Finance a new car — Buying or leasing a vehicle adds new debt and lowers your score.
- Take out any new loans — Personal loans, student loan refinancing, or any other borrowing.
- Buy big-ticket items on credit — No new furniture, appliances, or electronics on credit cards or financing plans.
These actions can:
- Drop your credit score (new accounts = hard inquiries + higher credit utilization)
- Increase your debt-to-income ratio
- Trigger lender concerns about your financial stability
I’ve seen buyers lose their dream home two weeks before closing because they opened a new credit card or financed furniture. It’s heartbreaking and completely preventable. When Is It Safe to Make These Changes? After closing—once your loan funds and the home is officially yours. You can then buy a car, furniture, or open new credit lines without risking the mortgage. The Bottom Line Be smart during the mortgage process. Protect your credit score and debt-to-income ratio until after closing. A small mistake can cost you thousands in higher rates or even the entire loan. If you’re planning to buy a home in Lakeville, Apple Valley, Eagan, Burnsville, Bloomington, or the south metro, let’s talk. As a real estate agent in Lakeville MN with over 20 years of experience helping buyers navigate the Minnesota home buying process, I’ll guide you step-by-step to avoid these pitfalls and get you into your new home with confidence. Ready to buy smart in 2026? Text or call me today, Tom Sommers with Coldwell Banker Realty, for a free, no-obligation consultation. Let’s make sure your credit and finances are bulletproof before you start shopping.
