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.

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 home had you resisted spending.

Talk to a mortgage banker about the best plan for your financial situation. It may be to your advantage to pay off some of your debt or to save for a down payment. Each buyer’s financial situation is different. So plan ahead and seek good advice from a reputable mortgage company.