You should avoid applying for any new credit or loans while you’re nearing — or in the middle of — the mortgage process. That’s because your mortgage lender has extremely strict guidelines to follow when considering an application from a potential borrower. Any change to your credit score, or the addition of more debt to your credit report, can negate a prequalification or take you out of consideration for a home loan. Even if you’re a year or more out from applying for a mortgage, you should still be very careful with any new debt you add to your monthly payment obligations. After all, credit can both help or hurt your chances of getting a home — and if you add too much debt to your name, it can create a problem that takes quite some time to resolve. Your mortgage lender can terminate your pending home purchase if you take on new debt after your mortgage prequalification. This is especially true if you’re in the mortgage application process. Don’t take your prequalification as a sure thing. Your lender can — and will — rescind your mortgage offer if you add new debt to your credit report before you close on your loan.