1. Change your job. Now is not the right time to become self-employed, to quit your job or to even switch jobs. Lenders want to see job stability, which means you’re less likely to default on your loan.
2. Co-sign on a loan. Even if you’re not the one who will be making the payments on a loan, if you’re a co-signer, you’re financially responsible for repayment. Co-signing on a loan will increase your debt-to-income ratio, which will decrease the amount you’ll be able to borrow.
3. Make a big purchase. Making any big-ticket purchase on credit during the home-buying process isn’t a great idea because it increases your debt-to-income ratio. Anything big you buy with cash is less money you can use for your down payment or closing costs. It also limits the amount of money you can use to demonstrate an adequate cash reserve, a requirement for most types of loans.
4. Make any big (unexplained) deposits. Money that will be used for your down payment should have been sitting in your account for at least two months.
Read more about what other types of things you should avoid doing during the home-buying process here.