Applying for a mortgage can feel overwhelming, especially if you’re unsure what actions could impact your approval. Understanding the mortgage do’s and don’ts—and what not to do when applying for a mortgage—can help you navigate the process of getting a mortgage with confidence and avoid costly delays.
Below are some key mortgage dos and don’ts every borrower should know.
What Are the Key Do’s and Don’ts During the Mortgage Application Process?
The key do’s and don’ts during the mortgage application process include maintaining stable finances, avoiding new debt, paying bills on time, and staying in close communication with your lender.
Small financial changes during this time can impact your approval, so it’s important to stay consistent until closing.
- Get pre-approved early
- Avoid opening new credit accounts
- Do not make large purchases
- Pay all bills on time
- Keep communication open with your lender
Mortgage Do’s: What To Do When Applying For A Mortgage
Get pre-approved early
A pre approval helps you understand your buying power and shows sellers you are a serious buyer. It also allows you to identify and address any potential issues early in the process of getting a mortgage.
Gather your documentation up front
Be prepared with recent pay stubs covering a 30 day period, two years of W 2s and tax returns, two months of bank statements, and, if self employed, year to date profit and loss and balance statements. Having everything ready helps prevent delays during underwriting.
Pay all bills on time
Your credit score directly impacts your approval and interest rate. Even one late payment can create issues or affect your loan terms.
Disclose your funds to close
We must verify the source of all down payments and closing funds. Undisclosed gifts or unexplained deposits can delay approval and closing.
Ask questions
If you do not understand a term, fee, or document, ask. Our expert loan officers are here to explain every step and ensure you feel confident throughout the process.
Share your transaction contacts
Let us know who your professionals are such as your real estate agent, attorney, accountant, or financial advisor to ensure smooth coordination and communication.
Mortgage Don’ts: What Not to Do When Applying for a Mortgage
Don’t freeze your credit
Lenders pull credit and may run a soft check prior to closing. A credit freeze can delay processing and final approval.
Don’t change jobs close to closing
Avoid changing employers within 30 days before or after closing, as employment changes can disrupt approval—even with higher income.
Don’t make large purchases or open new credit
Buying or leasing a car, increasing credit card balances, or applying for new loans can raise your debt-to-income ratio and jeopardize final approval.
Don’t make large, undocumented deposits
Funds must be sourced and documented. Unverified deposits cannot be used toward your transaction and may cause delays.
Don’t ignore our calls or emails
Delays in signing disclosures or providing documents can slow the process or result in a loan denial.
Don’t wait to secure homeowners insurance
Insurance quotes and policy binding take time and are required prior to closing. Start early to avoid last-minute delays.
Understanding the Process of Getting a Mortgage
The process of getting a mortgage typically includes pre-approval, application, underwriting, and closing. Throughout each stage, lenders evaluate your financial stability, which is why following these mortgage do’s and don’ts is essential to keeping your loan on track.
Why These Mortgage Do’s and Don’ts Matter
Even small financial changes during the mortgage process can impact your loan approval. Lenders verify your credit, income, and assets multiple times before closing, and unexpected changes can delay or jeopardize your loan.
By following these guidelines, you can reduce risk, avoid unnecessary delays, and move through the process with greater confidence.
Work With GuardHill
At GuardHill, we guide borrowers through every step of the mortgage process to help avoid common pitfalls and ensure a smooth path to closing.
Contact GuardHill Financial and be matched with a mortgage specialist to see how GuardHill can make the mortgage process easy for you.
