Things You SHOULD NOT DO When Trying to Get a Home Loan

Real Estate Broker/Owner with Sandra Nickel REALTORS

Trust me when I say that lenders WANT to help you get a loan for your mortgage, but sometimes clients make impulsive decisions that can derail their chances of getting a mortgage loan approval.​

Here are ten things you SHOULD NOT DO if your goal is to get approved for a mortgage loan:

  1. DO NOT buy a car (or boat, RV, four-wheeler etc.) If you are trying to buy a home, now is NOT the time to buy a new vehicle of any kind.

  2. DO NOT be late on credit card payments. In fact, now is a good time to limit your credit card use as much as possible. You definitely don’t want to hurt your credit report by being late on payments.

  3. DO NOT quit or change jobs or become self-employed. Lenders want to see steady employment and income consistency. Once you get into your new address, then you can change jobs.
  4. DO NOT apply for credit. If you’re shopping in a store and they offer a credit card application for a discount on your purchase, JUST SAY NO. Any credit application means a credit inquiry, and that will impact your credit score. Lenders will be looking at your credit report just before closing, and any new activity may result in delays.

  5. DO NOT purchase big-ticket items. Just like with vehicles, it is prudent for you to wait until after you are in your new home to buy expensive items like furniture or appliances.

  6. DO NOT spend your savings. The last thing you want to do is to get your loan approved, but then not have the money you set aside for your down payment!  Leave your savings intact!

  7. DO NOT make unusually large deposits into your accounts. If you suddenly come into a large amount of money, that will raise flags to your lender and will require an explanation. In some cases, you can use gifted funds to purchase a home, but you need to talk to your mortgage banker about how that money needs to be documented.

  8. DO NOT hide things on your loan application. Things like owed back taxes, liens or other liabilities WILL be discovered. Be honest from the start so there are no surprises (and disappointments) down the road.
  9. DO NOT co-sign a loan for someone else. Co-signing on a loan for someone else can lower your credit score while also raising your debt-to-income ratio. This, in turn, may affect your chances of qualifying for a mortgage loan.

  10. DO NOT open, close, or change bank accounts. Even if you are moving to a new state, don’t close your bank accounts or change them until your home loan has closed. If you have new bank account activity, it will require a paper trail and may delay your loan process.

Mortgage bankers are on your side. They want you to get a home loan as much as you want to get one. Be sure to avoid these “DO NOTS” to help the process go as smoothly as possible!

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out for more information!

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Comments (2)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Sandra and you nail it what people should not do, I havea client in my early years quit there job 1 week before closing.


Dec 01, 2021 10:34 AM