Buying your first home is exciting. But missteps during the mortgage process can delay or even kill your deal.
Why it matters: Your mortgage approval hinges on stability and trust. Even small financial moves – like a new credit card, a job switch, or a surprise deposit – can derail the process. Avoiding these mistakes keeps your loan secure, your closing on schedule, and your dream home within reach.
Don’t open new credit
That new car or furniture set can wait. Even small credit cards can throw off your debt-to-income ratio and jeopardize approval. Stick to your current accounts until after closing.
Don’t change jobs without notice
Lenders need stability. Switching industries or moving from salary to commission can raise red flags. If you change jobs, tell your loan officer immediately.
Don’t have unexplained bank activity
Large deposits or withdrawals trigger scrutiny. Be ready to document where money comes from or goes. Gifts, sales, or transfers all need proof.
Don’t close credit cards
Pay down balances, but don’t cancel accounts. Closing cards removes positive history and can hurt your credit score. Keep them open until after closing.
Don’t hide financial issues
Your lender will uncover debts or credit hits. Being upfront allows them to find solutions that keep your loan on track.
Don’t go in unprepared
Most first-time buyers need to strengthen credit or job history before qualifying. Work with a financial counselor early to build healthy habits and improve your profile.
Bottom line: Lenders look for stability, transparency, and financial discipline. Avoid these pitfalls and you’ll move to closing with fewer surprises.
Let NewHomeSource help you on your homebuying journey with our comprehensive listings.
Julie Gordey
A lifelong educator, Julie Gordey, is a retired school administrator. After years of focusing on education, this University of Texas graduate now travels and enjoys freelance writing for BDX and NewHomeSource.com.