Applying for a mortgage is one of the most important financial steps you’ll take in your life. But here’s the thing: even small mistakes can throw the entire process off track.

Whether you’re a first-time buyer or a seasoned homeowner, it’s crucial to know what to avoid to keep your mortgage approval on course. Let’s dive into five common mistakes that can derail your mortgage approval—and how you can avoid them.

1. Making Big Purchases Before Closing

It might be tempting to celebrate your new home with a shiny new car, furniture, or a home entertainment system, but hold off on major purchases until after your mortgage is finalized.

Why? Lenders will re-check your credit and financial situation before closing. A big purchase could:

• Increase your debt-to-income ratio, making you appear riskier to lenders.
• Lower your available credit, which can affect your credit score.

“Your dream home deserves your full focus—big purchases can wait.”

How to Avoid It:

• Resist the urge to finance anything new, even if it feels like a “necessary” purchase.
• Stick to your budget and save those celebratory splurges for after closing day.

2. Changing Jobs or Careers

While a new job might be exciting, it can be a red flag to lenders, especially if it happens mid-application. Mortgage approval depends on stable, reliable income, and any career changes during the process can disrupt that.

Even if your new job offers higher pay, the uncertainty of a probationary period or a new industry can make lenders nervous.

How to Avoid It:

• If possible, wait until after your mortgage has closed to make any career moves.
• If a job change is unavoidable, communicate with your lender as early as possible.

3. Ignoring Your Credit Score

Your credit score plays a huge role in determining your mortgage approval and the interest rate you qualify for. Even one missed payment during the process can tank your score and jeopardize your loan.

For example, forgetting to pay a credit card bill could lower your score enough to push you into a higher-risk category, which might mean higher rates—or even a declined application.

How to Avoid It:

• Stay on top of all your payments during the mortgage process. Consider setting up automatic payments to avoid missing due dates.
• Avoid opening new credit accounts or making hard inquiries until after your mortgage is finalized.

“Protect your credit score like it’s your golden ticket to homeownership.”

4. Not Having Enough Cash on Hand

Many buyers assume that once they’ve saved their down payment, they’re financially ready. But mortgage lenders also look for cash reserves to ensure you can handle closing costs and unexpected expenses.

Running your bank account too low can raise red flags and even result in a denied application.

How to Avoid It:

• Budget for closing costs, which typically range from 3–5% of the home’s purchase price.
• Keep an emergency fund available to show lenders you’re financially stable.

5. Failing to Provide Accurate or Complete Documentation

When you apply for a mortgage, lenders need detailed information about your income, assets, debts, and employment. Missing documents or inaccuracies can slow down—or even halt—the approval process.

For example, forgetting to include a source of income or submitting outdated pay stubs might cause delays that could cost you the home.

How to Avoid It:

• Double-check your documentation before submitting it. This includes recent pay stubs, tax returns, and proof of assets.
• Respond promptly to any lender requests for additional information.

“Accuracy and promptness go a long way in keeping your application on track.”

Bonus Tip: Stay in Communication

Throughout the mortgage process, clear and open communication with your lender or broker is key. If something changes—like your job status, credit score, or financial situation—let them know right away.

Lenders are there to help you succeed, but they can only work with the information they have.

Final Thoughts

Avoiding these common mistakes can make the difference between smooth approval and unexpected setbacks. The key is to stay disciplined, plan ahead, and communicate throughout the process.

If you’re feeling uncertain about any part of your mortgage journey, let’s chat. I’ll guide you every step of the way, helping you avoid the pitfalls and secure the best possible loan for your dream home.

Ready to take the next step with confidence? Reach out today, and let’s make your mortgage journey stress-free.