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10 Things NOT to Do When Applying for a Mortgage
Dated: July 1 2025
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10 Things NOT to Do When Applying for a Mortgage
Avoid These Common Mistakes to Keep Your Home Loan on Track
Buying a home is one of the biggest financial steps you’ll ever take—and getting approved for a mortgage is a major part of the process. At the Denise Payne Real Estate Team, we’ve helped countless buyers through the loan process, and we know exactly how small missteps can cause big delays or even loan denial.
Here are 10 things you should absolutely NOT do when applying for a mortgage—and how avoiding them can keep your homebuying journey running smoothly.
1. Don’t Make Major Purchases
Buying a new car, furniture, or even expensive appliances on credit before your mortgage closes can throw off your debt-to-income ratio. Wait until after closing to make big purchases.
2. Don’t Change Jobs or Quit Without Talking to Your Lender
Stability is key. Even if you're changing jobs for more income, your lender may see it as a risk. Always talk to your loan officer first before making employment changes.
3. Don’t Open New Credit Cards or Loans
Every new credit inquiry can impact your credit score and signal potential financial instability. Even “just looking” at new credit offers can raise a red flag.
4. Don’t Close Old Credit Accounts
It might seem smart to clean up your credit, but closing old accounts can actually reduce your credit score by shortening your credit history and changing your credit utilization ratio.
5. Don’t Ignore Your Credit Report
Mistakes happen. Before applying, review your credit report for any errors or unknown accounts that could delay approval. Correcting issues early can save time and stress later.
6. Don’t Deposit Large Sums Without a Paper Trail
All funds used in your transaction must be documented. If you deposit a large amount into your account, be prepared to explain and prove where it came from—especially if it's cash.
7. Don’t Miss Any Monthly Payments
Even one late payment on a credit card or loan can affect your credit score and make your lender second-guess your reliability. Stay current on all bills—no exceptions.
8. Don’t Co-Sign Loans for Anyone
Co-signing means you’re financially responsible for someone else’s loan, and lenders will count that against your debt-to-income ratio. Even if the other person makes the payments, you’re still on the hook.
9. Don’t Max Out or Overuse Your Credit
High balances can lower your credit score—even if you make payments on time. Try to keep credit card usage under 30% of your limit while applying for a loan.
10. Don’t Assume You’re Pre-Approved Until It’s Official
Pre-qualification is not the same as pre-approval. Don’t make an offer on a home or start making plans until you’ve received formal pre-approval from your lender.
The Bottom Line:
The mortgage process is about more than just your credit score—it’s about proving financial stability. If you avoid these common mistakes, you’ll keep your loan on track and be one step closer to closing on your dream home.
Need a lender recommendation or want help navigating the mortgage process? The Denise Payne Real Estate Team is here to help every step of the way.
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All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating
All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating
All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating
