Getting approved for a mortgage isn't just about your finances at the moment you apply — it's about keeping them stable throughout the entire process. Several common mistakes can slow things down or create real problems, and most of them are avoidable with a little awareness.
Don't Take on New Debt
Financing a car, opening a new credit card, or making a large purchase on existing credit can all affect your debt-to-income ratio and your credit score. Lenders check your credit at the start of the process and often again before closing. A new debt that appears between those two points can change what you qualify for — or whether you close at all. Hold off on major purchases until after you have the keys.
Don't Change Jobs Unexpectedly
Lenders look for stable, predictable income. A job change mid-process — even a lateral move or a promotion — introduces uncertainty. Changing industries, switching from salaried to self-employed, or taking a gap between jobs during underwriting can all trigger additional scrutiny and delays. If a job change is unavoidable, let your lender know immediately so they can advise you on how to handle it.
Don't Ignore Your Documentation
The paperwork involved in a mortgage application is real, and disorganized or incomplete documents are one of the most common causes of delays. Gather your last two years of tax returns, recent pay stubs, bank statements, and anything showing your assets. When your lender asks for something, respond quickly — even a few days of delay can affect your closing timeline.
Don't Skip Pre-Approval
Some buyers start home shopping before they've spoken to a lender, then fall for a home they can't finance. Pre-approval gives you a realistic budget and makes your offer more credible. Without it, you're guessing at what you can afford and potentially wasting time — and your real estate agent's time — on homes that aren't within reach.
Don't Make Large Deposits Without Explanation
Underwriters are required to trace the source of the funds going into your down payment and closing costs. A large, unexplained deposit into your bank account raises a flag. If you receive a financial gift from family, there's a specific process for documenting it. Talk to your lender before any money moves.
Don't Close or Max Out Existing Accounts
Closing an old credit account can reduce your available credit and raise your utilization ratio, which can lower your score. Similarly, maxing out a card even temporarily — even if you pay it off right away — can ding your credit at exactly the wrong moment. Keep existing accounts stable throughout the process.
Not sure what to expect? Talk to First Look Home Loans before you apply — we'll walk you through the process so nothing catches you off guard.
