7 Mistakes to Avoid When Applying for a Mortgage

Applying for a mortgage is one of the most important steps in buying a home. The process can feel overwhelming, and small missteps may cost you time, money, or even your loan approval. To help you prepare, here are seven common mistakes to avoid when applying for a mortgage.

1. Not Checking Your Credit Score in Advance

Your credit score directly impacts your interest rate and approval odds. Many buyers skip this step and are surprised by errors or low scores that could have been fixed beforehand. Always review your credit report early and dispute inaccuracies.

2. Making Big Purchases Before Closing

Buying a car, new furniture, or running up credit cards before closing can change your debt-to-income ratio — and jeopardize your loan. Lenders often re-check finances right before final approval. Keep spending steady until after closing day.

3. Failing to Get Pre-Approved

A pre-approval letter shows sellers you’re a serious buyer and gives you a clear price range. Without it, you may waste time looking at homes outside your budget — or lose out in a competitive market.

4. Changing Jobs Mid-Process

Stability matters to lenders. Switching jobs or industries before closing can raise red flags, even if the new position pays more. Unless absolutely necessary, hold off on career changes until after your mortgage is finalized.

5. Ignoring Loan Options

Different loan types (FHA, VA, conventional, jumbo) have different requirements and benefits. Some first-time buyers only consider conventional loans and miss out on programs that could save them money. Explore all your options with your lender.

6. Not Budgeting for Closing Costs

Many buyers focus on the down payment but forget about closing costs, which often run 2–5% of the purchase price. Be sure to factor these into your savings plan so you’re not blindsided at the finish line.

7. Withholding Information from Your Lender

It may be tempting to gloss over debts or financial issues, but lenders will find them during underwriting. Being upfront ensures a smoother process and prevents last-minute denials.

Final Takeaway

Avoiding these seven mistakes can make your mortgage application process smoother, less stressful, and more likely to end with a “yes.” Preparation and honesty go a long way toward securing your new home.