Holiday mistakes that could cost you - Movement Mortgage Blog

Here is a refresher on what not to do before closing on a house, with the holiday season coming up. These tips apply all year, but during the high-spend holiday season, it is critical to avoid mistakes that could cost you your mortgage approval. 


What not to do before closing on a house

After getting the super exciting pre-approval letter, it’s to be expected that you’ll be amped and want to throw a few fist pumps in the air. Post initial celebration, your next thoughts will probably be about closing, moving, and filling your home. New house, new furniture – it makes sense. You may be asking: Can I use my credit card while buying a house? 


what not to do before closing on a house
Can I use my credit card while buying a house?

Credit? Stay away! 🙅‍♂️

Any good loan officer will tell you to steer clear of additional credit card debt as much as possible. When using your credit card, you’ve now upped your credit utilization, which has an impact on your credit score (as Credit Karma so nicely instructs). ICYMI, credit score has a significant impact on your loan’s approval. So if you have a pre-approval based on one credit score, and now have a different score, it could change whether you get the final thumbs up on financing. 


It could be argued that if you’re spending a minimal amount, like $5-$20, you’ll be in the clear. But if you’re thinking of spending big on furniture, think again.


what not to do before closing on a house
What not to do before closing on a house

Save your savings 

Don’t get flashy too soon. It can be easy to get swept away in the holiday spirit and want to spend. However, many forget (or just don’t realize) there are many fees that come with a new mortgage. Do you actually need the 40-pound Butterball versus the 20-pound one? Don’t deplete your savings on turkeys, decorations and gifts when it should be going toward the down payment and closing costs of your upcoming home!


Have you made a list? And checked it twice?

It is crucial to budget when spending increases during the holidays. Know the costs for your mortgage. Your loan officer can explain them to you. There are several fees involved, and you’ll want to know as soon as possible what funds you should have set aside for your respective celebrations. If you need a handy dandy holiday budget printable, America Saves offers a helpful PDF


The holidays are a fun and exciting, but come with a lot of spending. But if you’re in the middle of buying a home, keep these tips in mind when going to swipe for your next purchase. Big purchases especially can be detrimental to your final loan approval. Be in the know and don’t let these possible slip-ups cost you your home.

Need more advice? Ask a local loan officer.



About the Author:

Adam O'Daniel

Adam O'Daniel is Movement's Communications Director. He leads corporate communication and public relations efforts across the organization. Email him at