Buying a home is an exciting milestone, but it’s also one of the largest financial decisions most people will ever make. For buyers in Metro Atlanta, small missteps during the home buying process can lead to delays, added stress, or even the loss of a home you love.
Understanding what not to do when buying a home is just as important as knowing the steps you should take. Whether you’re a first-time buyer or someone who hasn’t purchased a home in years, avoiding the following mistakes can help keep your purchase on track and your financing secure.
At Next Move ATL | Keller Williams Realty Atlanta Partners, we see these issues come up regularly—and the good news is that most of them are completely avoidable with the right preparation.
#1 Don’t overestimate what you can afford
One of the most common mistakes buyers make is assuming they can comfortably afford the maximum amount they’re approved for. While pre-approval is an essential step in the Georgia home buying process, it does not automatically equal true affordability.
Affordability should be based on your full monthly picture, including mortgage payment, property taxes, insurance, HOA fees, utilities, and lifestyle expenses. Buyers who stretch too far often find themselves feeling financially constrained after closing.
In competitive areas of Metro Atlanta, it’s especially important to set realistic expectations early so you can focus on homes that fit both your budget and your long-term goals.
#2 Don’t get emotionally invested
It’s easy to fall in love with a home the moment you walk through the door—but emotional decision-making can lead to costly mistakes. Buyers who become attached too early may overlook inspection concerns, overpay, or rush into decisions they later regret.
A home purchase should balance emotion with logic. Keeping your priorities clear and leaning on market data helps ensure you’re making a sound investment, not just an emotional one.
Taking a step back and evaluating each home objectively will protect you in the long run.
#3 Don’t make any large purchases
Unexplained cash deposits or withdrawals can raise red flags for lenders. Mortgage underwriters must verify the source of all funds used for a home purchase, including down payments and closing costs.
If you’re receiving gift funds or transferring money between accounts, proper documentation is critical. Without it, lenders may delay or deny approval while seeking clarification.
Staying consistent and transparent with your finances helps keep the underwriting process smooth.
#4 Don’t take out or put in large amount of cash from your bank account
Do not put in or take out large amounts of cash. The bank financing you will flag large deposits coming in because they may be loans from a bank or another lender. You in turn would have to pay back those loans on top of your mortgage, which would damage your loan to debt ratio.
A parent or family member may have gifted you part of your down payment in which case they may need to sign a letter stating that the money was a gift and you will not be paying them back. If you did in fact have to pay them back, it would be added to your monthly debt.
If you do happen to get a large sum of money from selling something like a car or if someone pays you money back that is owned, you may just have to prove it was from a legitimate source.
Most lenders will look at up to 60 days worth of bank statements. It is best to get your documentation organized prior to applying for the mortgage and make sure you can account for any large withdrawals or deposits.
#5 Don’t apply for more credit
Applying for new credit—even something that seems minor—can affect your credit score and debt obligations. New credit cards or store financing can change your financial profile during underwriting, sometimes unexpectedly.
For buyers navigating the Atlanta housing market, maintaining financial stability throughout the transaction is key. Avoid new credit applications until after closing to protect your loan approval.
#6 Don’t co-sign a loan
This may seem like common sense but if a friend or family member needs you to co-sign a mortgage then you might not think anything of it. But co-signing a loan can really effect your own chance of being able to get one.
If they default on their mortgage then you are responsible for the payments, which in turn would affect your ability to make your own. In cases like these, it is best to protect your own financial interests.
#7 Don’t finance anything
Financing new purchases creates additional monthly obligations that lenders must factor into your loan. Even short-term financing can change your debt ratios and limit the amount you qualify for.
Buyers in Metro Atlanta are often surprised by how sensitive mortgage approvals can be late in the process. Keeping your financial profile unchanged is one of the simplest ways to avoid last-minute issues.
#8 Don’t switch a job, leave a job or start a company
Your ability to show you are financially stable is the single biggest determinant in getting a mortgage. Quitting a job or switching jobs can aid in your potential risk to a lender that you are not in a good financial or stable position.
If you are planning on applying for a new position or starting a company, it is best to do it once you have closed on the property. And of course, try not to get fired.
#9 Don’t miss loan payments
If you do have any loans you’re paying off, make sure you do not miss any payments. You likely haven’t missed any if you have good credit, but be extra cautious when applying for a mortgage.
Sometimes they’re honest mistakes like having been away for work or on a trip for a substantial amount of time. Or maybe you were in the hospital or a family member was sick so you were not as on top of your bills.
But having a 30 day missed payment can drop your credit by more than 100 points. So be sure to stay on top of your finances, especially when your credit score is crucial to your pre-approval.
#10 Don’t switch banks
I mean you likely don’t switch banks very often, but sometimes banks offer freebies like televisions sets or cash back when opening an account. It can be tempting, especially given the timing, but detrimental to a mortgage pre-approval.
Stick with the bank you have now so you will be able to provide at least 60 days of transactions and bank account balances. It may seem minor but can make your life a lot more complicated than it needs to be if you switch your bank last minute.
Final Thoughts
Buying a home involves many moving parts, and even small financial changes can have a big impact. By understanding what not to do when buying a home, you can reduce stress, avoid delays, and protect your purchasing power.
Whether you’re buying your first home or making a move within Metro Atlanta, having a clear plan—and avoiding these common mistakes—can make all the difference.
At Next Move ATL | Keller Williams Realty Atlanta Partners, our focus is helping buyers navigate the process with confidence, clarity, and local expertise—so when you do buy, you feel great about the decision long after closing.