Mistakes That Can Cost You Big
Even small missteps during the mortgage process can lead to delays, denials, or thousands in extra costs. Here's what to avoid.
Before Applying
Mistake #1: Not Checking Your Credit First
Discover errors or issues before lenders do. Get your free reports from AnnualCreditReport.com at least 3-6 months before applying.
Mistake #2: Making Major Purchases
That new car or furniture set can tank your debt-to-income ratio. Wait until after closing for big purchases.
Mistake #3: Only Talking to One Lender
Shopping around can save you 0.5% or more on your rate—that's tens of thousands over the life of your loan.
During the Process
Mistake #4: Changing Jobs
Lenders want to see stable employment. If you must change jobs, stay in the same field and don't go from salary to commission.
Mistake #5: Moving Money Around
Large deposits or transfers raise red flags. Keep funds in one place and document any necessary moves.
Mistake #6: Opening New Credit
Even small credit inquiries can impact your approval. Don't apply for new cards, increase credit limits, or co-sign for anyone.
Mistake #7: Ignoring the Loan Estimate
This document shows your expected costs. Review it carefully and question anything that seems off.
At Closing
Mistake #8: Not Doing a Final Walk-Through
Ensure the home is in the agreed condition and any negotiated repairs are complete.
Mistake #9: Not Reading Before Signing
Yes, there's a lot of paperwork. But signing something you don't understand can have serious consequences.
Mistake #10: Forgetting About Reserves
Don't drain your savings for the down payment. Keep 3-6 months of expenses as an emergency fund.
After Closing
Mistake #11: Skipping the First Payment
Your first payment date might be 30-60 days out, but set up payment immediately to avoid any confusion.
Mistake #12: Not Filing the Deed
Ensure your closing attorney or title company properly records the deed with your county.
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Frequently Asked Questions
What if I already made one of these mistakes?
Don't panic. Many issues can be resolved with documentation and explanation. Be upfront with your lender about any concerns.
Can a lender deny me after pre-approval?
Yes. Pre-approval isn't final approval. Maintain your financial status quo until you have the keys.