Applying for a mortgage is one of the most important steps in buying a home. But small missteps can slow down the process—or even cost you the loan. Here are ten common mistakes to avoid when applying for a mortgage.
1. Not Checking Your Credit Score
Your credit score is one of the biggest factors lenders consider. Know your score ahead of time so you can fix issues before applying.
2. Making Large Purchases
Buying a new car or expensive furniture before closing can change your debt-to-income ratio and hurt your chances.
3. Changing Jobs Mid-Process
Lenders want stable employment. Switching jobs while applying can delay or derail your approval.
4. Ignoring Your Budget
Just because you qualify for a certain amount doesn’t mean you should borrow it. Focus on what you can comfortably afford.
5. Skipping Pre-Approval
Pre-approval gives you an edge in competitive markets and helps set realistic expectations.
6. Forgetting About Closing Costs
Many buyers only budget for the down payment. Don’t overlook fees like appraisals, title insurance, and inspections.
7. Not Shopping Around for Rates
Rates and fees vary by lender. Comparing offers could save you thousands.
8. Co-Signing a Loan
Even if you’re just helping a friend or family member, co-signing adds to your debt obligations in the eyes of lenders.
9. Withholding Information from Your Lender
Be honest about your debts, income, and assets. Incomplete or inaccurate info can cause delays or denials.
10. Not Asking Questions
Mortgages can be complex. Don’t be afraid to ask your lender for clarification at every step.art writing!