Buying a home is a major milestone, and it’s perfectly normal to feel a mix of excitement and nerves. You’ve probably spent time saving, working on your credit, or maybe you’ve already gotten pre-approved. That’s a big step, but it’s not the finish line.
There are a few common mistakes that can slow things down once you’re on the path to homeownership. The good news is that most of them are easy to avoid once you know what to look out for. My goal is to help you understand how to stay ready so that when it’s your turn to close, everything moves smoothly.
Understanding the Homebuying Stages
Before we talk about what to avoid, let’s take a quick look at how the process actually flows.
First, you’ll work with a lender to get pre-approved, which helps you know what you can afford. Once you find a home you love and your offer is accepted, you go under contract. From there, your loan goes through underwriting, which is where the lender double-checks everything to make sure your file meets the loan guidelines.
Once that review is complete and everything looks good, you’ll get the magic words every buyer wants to hear: clear to close. That means your loan is fully approved, and the home is officially yours once you sign.
Now that you know the flow, let’s look at the mistakes that often cause delays along the way and how to avoid them.
Treating Pre-Approval Like Final Approval
A lot of buyers breathe a sigh of relief once they get pre-approved, and I get it. It feels like a green light. But here’s the thing: a pre-approval is just your starting point, not your finish line.
That pre-approval tells you the price range you can confidently shop in. It’s based on the information your lender reviewed, like your income, credit, and bank statements. But once you go under contract, your file goes to the underwriter for a deeper review. That’s when they verify everything again to make sure it still fits the loan program.
This is where some buyers slip up. They stop checking their email, assume everything is done, or forget that their lender may ask for updated pay stubs or explanations about a deposit. It’s not because something is wrong; it’s just part of the process.
If you treat pre-approval as a green light to coast, you could unintentionally cause delays later. Stay in touch with your lender, respond quickly, and keep your finances steady until you get the official words, clear to close.
Not Having Enough Savings or Reserves
When you’re buying a home, it’s easy to focus on your down payment and forget about reserves. Reserves are extra funds that show the lender you can comfortably make your mortgage payment for at least one or two months after closing.
These funds can’t be used for your down payment or closing costs. They need to stay available after the home is purchased. Depending on your loan type, your lender may also count money in your 401(k) or retirement account as reserves.
Think of it as your safety cushion. Life happens. You might need to cover a repair, an unexpected bill, or just have peace of mind knowing you can handle your new payment if something shifts financially.
Not having enough reserves when required can delay your loan approval or even lower the amount you qualify for. It’s always better to have a little extra set aside than to come up short at the end.
Moving or Transferring Money Around
This one surprises a lot of buyers.
Once you’re in the homebuying process, your lender needs to see that your funds are stable and traceable. Every large deposit or transfer needs to be documented, and if the money looks like it came out of nowhere, they’ll ask for an explanation.
So, if you’re constantly moving money between accounts, pulling from CashApp or Venmo, or mixing business and personal funds, it can create a confusing paper trail. That slows everything down because the lender has to figure out where the money came from.
It’s not that they’re being nosy. They just have to make sure your funds are legitimate and truly yours.
The best thing you can do is keep your money in one account until after closing. If you need to move something, tell your lender first so they can guide you on how to document it.
Making Large Purchases or Opening New Credit
You’ve found your home, you’re under contract, and you’re excited. You start picturing that new living room set, stainless steel appliances, maybe even a new car for your new driveway. But here’s the problem: any new credit or large purchase can throw off your debt-to-income ratio.
Even a small payment can change your numbers enough to impact your loan approval. And since lenders often recheck your credit before closing, that new balance or account can create a surprise.
I’ve seen this happen more than once. A buyer financed new appliances right before closing, thinking it wouldn’t matter, and it caused their approval to be delayed. It’s frustrating when something so small gets in the way of such a big moment.
If you can, hold off on new purchases until after you close. Once you have your keys in hand, you can shop all you want.
Having Open Credit Disputes
If you’ve worked with a credit repair specialist, make sure you know exactly what’s being disputed and why.
Open disputes can cause a big delay during underwriting. Lenders can’t get a clear picture of your credit if something is being challenged. And even if the item is inaccurate, the dispute has to be resolved before your loan can close.
It’s more important for your credit to be accurate than to look clean. If you’re unsure, pull your credit report early and talk to your lender about any open disputes before you apply. Clearing them ahead of time keeps the process moving smoothly.
Not Being Transparent About Finances
Your lender’s job is to help you get to the closing table, but they can only work with what they know. If you’re changing jobs, earning money on the side, getting a bonus, or receiving gift funds from family, share that information upfront.
Lenders verify everything, including income, deposits, and employment, and it’s much easier to document things early than to fix them at the last minute. Being honest doesn’t hurt your chances. It actually gives your lender the tools to make your file stronger.
I’ve seen clients hesitate to mention something because they were afraid it might cause a problem. What really causes problems is finding out too late. Keep your lender in the loop and you’ll avoid unnecessary stress.
Taking Too Long to Respond
Once you’re under contract, time matters. Your lender might ask for updated pay stubs, bank statements, or explanations for certain deposits. The sooner you respond, the faster they can keep your file moving.
Even a short delay can push back your closing date. The goal is to stay ahead, not catch up. I tell my clients to check their email and lender portal daily during this phase. If your lender asks for something, try to send it the same day. That kind of responsiveness makes a huge difference.
Not Being Prepared for Cash to Close
Your cash to close is the total amount you’ll need to bring to closing. It includes your down payment, closing costs, and a few prepaid items like taxes and insurance.
Early in the process, your lender will give you a Loan Estimate showing how much you’ll need. Review it carefully and make sure those funds are available. If they’re not, be upfront about it so your lender and agent can help you explore options. Sometimes that means requesting seller credits or looking into down payment assistance.
The most important part is that your funds are sourced, meaning the lender can see exactly where they came from. Don’t borrow money or deposit cash right before closing. If a family member is giving you a gift, your lender will tell you exactly how it should be sent and documented.
Running out of funds or using money that can’t be verified can cause a major delay. Staying prepared keeps your file clean and your closing on track.
Preparation Beats Pressure
The homebuying process has a lot of steps, but every one of them leads you closer to the keys. The best thing you can do is stay organized, communicate often, and keep your finances steady.
These mistakes don’t have to happen to you. When you understand the process and take it one step at a time, you stay in control. You want to move once, not twice, and preparation is what makes that possible.
You’ve got this.
Ready to Start Your Homebuying Journey?
If you’re thinking about buying but aren’t sure where to start, let’s talk. I guide my clients through every step of the homebuying process, from understanding their finances to getting ready for pre-approval and beyond.
It’s never too early to start, and having a plan now can save you time and stress later.
Schedule a call today and let’s make sure you’re on the right track to becoming a homeowner.
