7 Mistakes to Avoid When Planning to Buy A Home

If you’re planning to buy a home in Delaware—whether it’s your first home, a PCS move to Dover Air Force Base, or a relocation for retirement—it’s important to know what not to do during the mortgage process.

Why? Because even seemingly small actions can cause big delays—or worse, loan denial.

Lenders want to see that your finances are stable and predictable. So while you’re searching for the perfect spot in Dover, Middletown, or the Delaware beaches, make sure to avoid these seven common mistakes.

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1. Don’t Change Jobs Without Talking to Your Lender

Whether you’re transferring to a new base, switching employers, or starting something new, make sure to talk to your lender first.

Lenders in Delaware—and everywhere—look for job stability. Even a well-paying job change can trigger questions that slow down your mortgage process. If possible, keep your employment steady until after closing day.

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2. Don’t Close Credit Accounts Without Advice

It might feel like a smart move to pay off and close credit cards before applying for a home loan, but it could actually hurt your credit score and reduce your available reserves.

Some Delaware loan programs, including VA loans and FHA loans, have specific requirements around assets and credit. Always check with your lender before making any changes to your accounts.

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3. Don’t Make Big Purchases (Yet)

If you’re relocating to Delaware and already imagining your new living room setup—pause that furniture shopping spree for now.

Major purchases like furniture, appliances, or cars increase your debt and lower your credit score. This can throw off your debt-to-income ratio, a key number lenders use to determine loan eligibility.

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4. Don’t Miss Any Payments

Delaware lenders take your payment history seriously. A single missed payment—on anything from a credit card to a car loan—can hurt your credit score or raise your interest rate.

Set reminders or autopay to stay current on everything, including utilities and even parking tickets in your new town.

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5. Don’t Accept Large, Unexplained Deposits

Lenders want to see that your down payment funds are “seasoned”—meaning they’ve been in your account for at least two months. A sudden deposit from a friend or family member could look suspicious unless it’s properly documented as a gift.

If you’re getting help with your home purchase in Delaware, make sure to follow proper steps and have the paperwork ready.

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6. Don’t Co-sign for Someone Else

Even if you’re just helping a family member or friend in another state, co-signing a loan will affect your mortgage application in Delaware. It adds debt to your record—even if you’re not making the payments—and could increase your debt-to-income ratio.

Wait until after you’ve closed on your Delaware home before co-signing anything.

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7. Don’t Shift Your Assets Around

Buying a home in Delaware is already a major financial commitment. Now isn’t the time to invest large amounts in stocks or other ventures.

Lenders want to see that your liquid assets are stable and sufficient to cover your down payment, closing costs, and a few months of mortgage payments.

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Planning to Buy a Home in Delaware?

From Wilmington to Milford to Rehoboth Beach, Delaware offers a wide variety of homes for every lifestyle. Whether you’re a first-time buyer, PCSing to Dover AFB, or retiring to the coast, avoiding these seven mistakes will help keep your mortgage process smooth and stress-free.

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Ready to Start Your Delaware Home Search?

If you’re thinking about buying a home in Delaware, let’s connect! I specialize in helping military families, those relocating to Delaware and retirees find the perfect place to call home.

Reach out today, and let’s make sure you’re set up for success from day one.