Don't go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home. Your mortgage pre-approval is subject to a final evaluation of your financial situation. Time and time again we have seen home-sales fall through at the very last minute because a Buyer purchased a new car or boat or racked up credit card debt, causing their previously approved loan to be denied. Just because your loan was approved last week doesn't mean the lender will not check up on you before the closing to make sure that you have kept up your end of the bargain (ie, made no changes to your credit status).

Every $100 you pay per month on a credit payment could cost your about $10,000 in home eligibility. For example, a car payment of $300/month could mean that you qualify for $30,000 less in a mortgage.

Even if you have accumulated enough savings, you should consider not making any large purchases until after closing. The last thing you want is to know that you could have purchased a new home had you curbed the urge to spend.