3 Holiday Spending Mistakes Future Homebuyers Should Avoid
Holiday shopping season starts earlier every year. If you’re hoping to buy a home next year, it’s worth protecting your credit and savings now.
We interrupt your regularly scheduled fall content with an important message about the upcoming holiday shopping season. If you’re thinking about buying a home next year, the decisions you make this fall could affect your buying power in 2027.
Maybe you hoped to buy a home this year, but higher interest rates changed the math. Or maybe next year was always your target.
Either way, waiting to buy doesn’t mean standing still.
If buying your first home is on your radar for next year, the next few months can be a smart time to strengthen your financial position. And that includes thinking ahead about holiday spending.
Before the shopping really gets underway, here are three mistakes future homebuyers should avoid this holiday season.
The takeaway: If buying a home is in your near future, be thoughtful about opening new credit just to save a little at checkout.
1. Opening New Credit Cards for the Discount
We get it. “Save 20% today when you open a card” can sound pretty appealing when your cart is full.
But if you’re planning to apply for a mortgage in the coming months, think beyond the immediate savings. Opening a new credit account can result in a hard inquiry and can change parts of your credit profile.
That doesn’t mean you should never open another credit card. But if buying a home is in your relatively near future, be thoughtful about taking on new credit just to save a little money at checkout.
2. Letting Holiday Balances Creep Up
Even if you pay your cards on time, higher balances can still affect your credit score. One factor is credit utilization, or how much of your available revolving credit you’re using. In general, lower utilization is better.
It’s also worth knowing that the balance reported to the credit bureaus may not be the same balance you see after making your monthly payment. If holiday spending pushes your balance unusually high, that higher balance may still show up on your credit report.
The takeaway: Use your cards if you want to, but keep an eye on balances and avoid letting holiday spending get away from you.
The takeaway: Give holiday spending its own budget instead of automatically pulling from money you’ve set aside for your future home.
3. Spending the Money You’ve Been Saving for Your Home
Buying a home usually involves more than the down payment. Depending on your situation, you may also need money for:
Closing costs
Inspections
Moving expenses
Immediate repairs or purchases
Savings left over after closing
If you’ve already started building a homebuying fund, try not to let the holidays quietly chip away at it.
Setting a separate holiday budget now can help you enjoy the season without automatically pulling from money you’ve already set aside for your future home. A little planning now can make January feel a whole lot better.
Give Your Future Home Search a Head Start
We’re certainly not suggesting you skip Christmas because you want to buy a house.
But if homeownership is one of your goals for next year, it’s worth making sure this year’s holiday spending doesn’t work against it.
A few thoughtful decisions now can put you in a stronger position when you’re ready to start looking.
And if you’re not sure where to begin, that’s okay too. You don’t need to be ready to buy tomorrow to start asking questions today.
It’s Never Too Early to Start the Conversation
If buying a home is somewhere on your horizon, talk to us now. We’ve worked with clients who first came to us years before they were ready to buy, and others who were ready to get started almost immediately. There’s no “right” point in the process to reach out.
We can help you think through your timeline, connect you with a trusted lender, understand what steps may make sense now, and make sure you’re ready when the time does come to move forward.
Whether you’re hoping to buy next year, a few years from now, or you’re not quite sure yet, we’re happy to guide you from wherever you are. Let’s connect!
Kenney & Co Group at KW Consultants Realty
Local Roots. Smart Moves. Lasting Wealth.
📍 Based in Central Ohio | Helping buyers, sellers, and investors
Teresa 📞 614-975-8370 | 📧 teresakenney@kw.com
Sheila 📞 614-264-1800 | 📧 sheilagibbons@kw.com
Liz 📞 614-517-2268 | 📧 lizkoehler@kw.com