It’s no secret that the mortgage application process is complex and often difficult. But did you know that there are a few simple mistakes that could get your application denied? This guide explains three of the most common mistakes people make when applying for a mortgage and how to avoid them.

3 Mistakes That Could Get Your Mortgage Application Denied

Three of the biggest mistakes that could get your mortgage application denied include:

Moving your money after you apply for a mortgage
Quitting your day job (or any other job)
Applying for new lines of credit

Scroll down for a closer look at each.

$775,000

5 Bedrooms
5 Bathrooms
5,596 Sq Ft
0.890 Acres

3265 Foxridge Drive Jasper, Indiana

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Listing courtesy of Brenda Krempp from RE/MAX Local.

$724,600

3 Bedrooms
4 Bathrooms
4,319 Sq Ft
1.600 Acres

1015 W 15th Street Jasper, Indiana

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Listing courtesy of Caroline Gobert from ERA FIRST ADVANTAGE REALTY, INC.

$624,900

3 Bedrooms
2 Bathrooms
2,940 Sq Ft
14.820 Acres

1089 N 400W Jasper, Indiana

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Listing courtesy of Zach Holt from Whitetail Properties Real Estate.

$624,000

4 Bedrooms
4 Bathrooms
3,906 Sq Ft
0.595 Acres

3289 St Charles Street Jasper, Indiana

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Listing courtesy of Annette Wigand from ERA FIRST ADVANTAGE REALTY, INC.

$475,000

4 Bedrooms
4 Bathrooms
3,955 Sq Ft
1.200 Acres

980 W Twentieth St. Jasper, Indiana

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Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.

$425,000

4 Bedrooms
3 Bathrooms
3,610 Sq Ft
1.300 Acres

1245 W 6th Street Jasper, Indiana

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Listing courtesy of Steve Wigand from ERA FIRST ADVANTAGE REALTY, INC.

$399,000

3 Bedrooms
2 Bathrooms
3,076 Sq Ft
1 Acres

3515 Villa Drive Jasper, Indiana

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Listing courtesy of Leanna Graves from RE/MAX REVOLUTION.

$399,000

3 Bedrooms
3 Bathrooms
2,650 Sq Ft
0.780 Acres

3264 Lakeside Dr. Jasper, Indiana

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Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.

$360,000

4 Bedrooms
2 Bathrooms
3,490 Sq Ft
0.371 Acres

307 Newton Street Jasper, Indiana

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Listing courtesy of Tama Stemle from RE/MAX Local.

$340,000

4 Bedrooms
4 Bathrooms
2,961 Sq Ft
0.294 Acres

333 Daisy Lane Jasper, Indiana

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Listing courtesy of Linda Schroering from CENTURY 21 SCHROERING REALTY.

$325,000

3 Bedrooms
2 Bathrooms
1,650 Sq Ft
0 Acres

614 W 34th Street Jasper, Indiana

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Listing courtesy of Daniel Hoffman from HOFFMAN & MULLEN REALTY INC.

$319,900

5 Bedrooms
3 Bathrooms
2,377 Sq Ft
0.346 Acres

1780 Sweet Gum Drive Jasper, Indiana

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Listing courtesy of Amanda Childers from Hawkins & Root Real Estate.

$315,000

3 Bedrooms
2 Bathrooms
3,232 Sq Ft
0.520 Acres

3508 N 600 W Road Jasper, Indiana

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Listing courtesy of Caroline Gobert from ERA FIRST ADVANTAGE REALTY, INC.

$289,000

3 Bedrooms
2 Bathrooms
1,648 Sq Ft
0.340 Acres

4130 N Portersville Road Jasper, Indiana

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Listing courtesy of Gina Mehringer from F.C. TUCKER EMGE.

$274,900

3 Bedrooms
3 Bathrooms
2,172 Sq Ft
0.460 Acres

1244 W 14th Street Jasper, Indiana

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Listing courtesy of Steve Lukemeyer from F.C. TUCKER EMGE.

Mortgage Mistake #1: Moving Your Money After You Apply for a Mortgage

When you apply for a mortgage, lenders will closely examine your financial history. This includes looking at your bank statements and tax returns to get an idea of your income, debts, and assets.

If you move money around after you apply for a mortgage, it could raise red flags with lenders. They may think you’re trying to hide something or that you’re not as financially stable as you appear.

To avoid this mistake, leave your money where it is until after you’ve closed on your mortgage.

Mortgage Mistake #2: Quitting Your Day Job (or Any Other Job)

Lenders want to see that you have a steady income and a good employment history. If you quit your job, it could make lenders question your ability to repay your mortgage.

Even if you have another job lined up, quitting before you close on your loan is a risky move. If something falls through or you have a gap in employment, it could delay or even derail your mortgage application.

The best way to avoid this mistake is to keep your current job until after you’ve closed on your loan.

Mortgage Mistake #3: Applying for New Lines of Credit

When you apply for a mortgage, lenders will pull your credit report and look at your credit history. If you’ve recently applied for new lines of credit, it could make lenders question your financial stability.

Lenders may also think you’re trying to take on more debt than you can handle, which could increase the risk of defaulting on your loan.

To avoid this mistake, wait to apply for new lines of credit until after you’ve closed on your mortgage.

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