5 Mistakes That Can Derail Your Mortgage Approval (and How to Avoid Them)

Applying for a home loan? One wrong move can delay or even cancel your mortgage approval. Here are 5 common mortgage mistakes that you should avoid during the process — especially if you’re getting close to closing.

Whether you’re a first-time homebuyer or a seasoned investor, avoiding these missteps can keep your mortgage on track and your closing date on schedule.

1️⃣ Don’t Make Large Purchases

Buying furniture, appliances, or a new car before closing can increase your debt and lower your credit score.

Why it matters:
Lenders calculate your debt-to-income ratio (DTI) and check your credit again before closing. New debt can change your loan eligibility.

Tip:
Wait until after you’ve closed to make any major purchases.

2️⃣ Don’t Switch or Quit Your Job

Lenders want to see employment stability. Changing jobs mid-process could delay verification or raise questions about income consistency.

Tip:
If a job change is unavoidable, let your loan officer know immediately and provide documentation.

3️⃣ Don’t Make Large Cash Deposits

Lenders require a paper trail for all assets used in your home purchase. Cash deposits without documentation may be considered high risk.

Tip:
Speak with your loan officer before depositing large sums, and be ready to show where the money came from.

4️⃣ Don’t Miss Any Payments

Late payments on credit cards, auto loans, or other bills can tank your credit score just before closing.

Tip:
Set calendar reminders or automate your payments until the mortgage process is complete.

5️⃣ Don’t Open New Credit Accounts

Every new credit inquiry or account can affect your credit utilization and score, potentially leading to a loan denial before closing.

Tip:
Avoid applying for credit cards, car loans, or store financing until after your mortgage has funded.

✔ Final Word: Stay Mortgage-Ready

The mortgage process doesn’t end at pre-approval. Stay financially stable, avoid new debts, and communicate with your loan officer before making big changes.

Need help navigating your mortgage journey?
📞 Contact us today to speak with a licensed loan expert. We’re here to guide you from pre-approval to closing — and beyond.