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After 500+ transactions across the Conejo Valley since 2009, I've seen the same costly buyer mistakes repeated over and over. While browsing homes on Zillow might feel like the hard part, the real challenges come during the purchasing process itself. One wrong move can derail the transaction and potentially cost you your deposit and the house.
Let me share some recent examples from my practice and explain exactly what you need to avoid to protect your home purchase from start to finish.
Key Takeaways
- A homebuyer nearly lost her purchase three days before closing after running up $3,000 in credit card debt to buy appliances.
- Lenders perform final credit checks before funding and can deny loans even after pre-approval if financial changes are discovered.
- Buyers must avoid opening new credit accounts, making large purchases, financing items, or taking new loans during escrow.
- Employment changes during home purchases require immediate communication with lenders and may need offer letters or pay stubs as documentation.
- Davis Bartels has closed 500+ transactions across the Conejo Valley since 2009.
Buyers can jeopardize home purchases by opening new credit accounts, financing large purchases, or changing jobs during escrow. Lenders perform final credit and employment checks before funding, even after pre approval. One case involved a buyer who nearly lost her purchase after adding $3,000 in credit card debt three days before closing.
Can Running Up Credit Cards Kill Your Home Purchase?
Not long ago, I had a client who nearly lost her home purchase three days before closing. She decided to run up $3,000 on her credit cards and opened a brand new account to buy appliances for her new home. What seemed like innocent preparation for move-in day almost became a transaction killer.
When the lender performed their final soft credit check before funding, they discovered the new debt and required her to pay off all the charges immediately. Fortunately, she had enough cash reserves to cover the debt payoff. If she hadn't, the loan likely would have been declined, she could have lost her earnest money deposit, and someone else would be moving into her home.
This isn't an isolated incident. I see buyers make credit mistakes constantly during escrow, not realizing that lenders monitor your credit right up until the day you sign loan documents. A meaningful change in your financial picture can trigger a loan denial, even after you've been pre-approved.
What Financial Changes Should You Avoid During Escrow?
When your lender gives you guidance about maintaining your financial status during the loan process, they're not making suggestions. These are requirements that can make or break your transaction. Here's what you absolutely cannot do once you're in contract:
- Open new credit cards or lines of credit
- Make large purchases on existing credit cards
- Finance furniture, appliances, or electronics
- Take out any new loans
- Make large cash deposits without documentation
I tell my clients in Westlake Village, Thousand Oaks, and throughout the Conejo Valley that if they want to celebrate their pending home purchase, wait until after closing. That new car or luxury purchase can wait 30 days. Your home purchase might not survive if you don't.
What Happens If You Change Jobs During Your Home Purchase?
Employment changes present another major risk during the buying process. Lenders generally want to see a two-year employment history, and they verify your employment right before closing. Switching jobs voluntarily during escrow is one of the fastest ways to complicate or kill your loan approval.
Of course, life happens. If you get laid off or face an involuntary job change, the situation isn't hopeless, but it requires immediate action. You'll need to:
- Secure new employment as quickly as possible
- Obtain a written offer letter from your new employer
- Provide your first pay stub once you start
- Work with your lender to request an extension if needed
The key is communication. When you're working with an experienced broker who has strong relationships with local lenders, these challenges can often be managed. What could be a transaction-killing catastrophe often becomes a speed bump we handle together.
How Can You Protect Your Home Purchase From Common Mistakes?
The difference between a successful closing and a failed transaction often comes down to guidance and communication. When buyers go it alone or work with inexperienced agents, small mistakes become big problems.
Here's how to protect yourself throughout the buying process:
Listen to your lender's guidance: When they tell you not to make financial changes, they mean it. Every instruction they give you exists because they've seen deals fall apart when buyers don't follow it.
Communicate before making any changes: Before you make any financial decisions during escrow, call your loan officer first. Before you consider a job change, discuss it with your agent and lender. Most problems can be avoided with proactive communication.
Work with experienced professionals: An experienced broker who has closed hundreds of transactions knows how to handle problems that would derail other deals. We've built relationships with lenders, title companies, and other professionals who can help solve problems quickly.
Keep your financial picture stable: From the day you submit your loan application until you sign final documents, treat your finances like they're under a microscope, because they are.
Why Does Professional Guidance Matter More Than Ever?
Buying a home takes much more than browsing listings online. Between loan requirements, competitive bidding and the details of managing a transaction, experienced representation earns its keep.
In my years serving buyers throughout Westlake Village, Newbury Park, Oak Park, Agoura Hills, Calabasas, and surrounding areas, I've seen how proper guidance transforms the buying experience. Instead of costly mistakes that jeopardize your purchase, you get proactive problem-solving that keeps your transaction on track. Many families moving to Conejo Valley from LA discover this benefit firsthand when they work with an experienced local agent.
Buying a home is far less stressful when you know what to expect and what to avoid before escrow starts.
If you're planning a purchase and want to talk through any of this, I'm happy to discuss. You can reach me through davisbartels.com. If you're buying outside our area, we can usually connect you with a strong broker in your market.
