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.
- 4 Bedrooms
- 6 Bathrooms
- 6,861 Sq Ft
- 22.830 Acres
445 3rd Avenue Jasper, Indiana
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Listing courtesy of Steve Lukemeyer from F.C. TUCKER EMGE.
- 4 Bedrooms
- 5 Bathrooms
- 5,388 Sq Ft
- 1.064 Acres
1987 Grandview Drive Jasper, Indiana
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Listing courtesy of Steve Lukemeyer from F.C. TUCKER EMGE.
- 3 Bedrooms
- 3 Bathrooms
- 1,776 Sq Ft
- 6.260 Acres
1928 South A Street Jasper, Indiana
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Listing courtesy of Arlet Jackle from RE/MAX Local.
- 3 Bedrooms
- 3 Bathrooms
- 2,940 Sq Ft
- 2.530 Acres
634 E Wright Road Jasper, Indiana
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Listing courtesy of Stacey Hurst from RE/MAX REVOLUTION.
- 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.
- 3 Bedrooms
- 2 Bathrooms
- 1,502 Sq Ft
- 0.344 Acres
900 Juniper Court Jasper, Indiana
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Listing courtesy of Dara O'Neil from F.C. TUCKER EMGE.
- 3 Bedrooms
- 3 Bathrooms
- 2,734 Sq Ft
- 0.580 Acres
980 S Crestwood Dr. Jasper, Indiana
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Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.
- 3 Bedrooms
- 4 Bathrooms
- 1,568 Sq Ft
- 1.100 Acres
4667 W Ireland Church Avenue Jasper, Indiana
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Listing courtesy of Marissa Goodness from Carpenter Realty LLC.
- 3 Bedrooms
- 3 Bathrooms
- 2,548 Sq Ft
- 0.259 Acres
920 Brandon Avenue Jasper, Indiana
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Listing courtesy of Sandra Cave from RE/MAX Local.
- 4 Bedrooms
- 3 Bathrooms
- 2,549 Sq Ft
- 0.124 Acres
612 W 8th Street Jasper, Indiana
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Listing courtesy of Dara O'Neil from F.C. TUCKER EMGE.
- 2 Bedrooms
- 2 Bathrooms
- 1,800 Sq Ft
- 0.208 Acres
891 Giesler Road Jasper, Indiana
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Listing courtesy of Kevin Bayer from RE/MAX Local.
- 3 Bedrooms
- 1 Bathrooms
- 1,086 Sq Ft
- 0.360 Acres
4862 N US 231 Highway Jasper, Indiana
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Listing courtesy of Kevin Bayer from RE/MAX Local.
- 4 Bedrooms
- 2 Bathrooms
- 1,963 Sq Ft
- 0.101 Acres
1312 Mill Street Jasper, Indiana
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Listing courtesy of Felicia Drew from Carpenter Realty LLC.
- 5 Bedrooms
- 5 Bathrooms
- 4,353 Sq Ft
- 1.115 Acres
470 Charlene Drive Jasper, Indiana
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Listing courtesy of Brenda Welsh from SELL4FREE-WELSH REALTY CORPORATION.
- 1 Bedrooms
- 2 Bathrooms
- 662 Sq Ft
- 27 Acres
6272 N Kellerville Road Jasper, Indiana
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Listing courtesy of Gary Schnell from SELL4FREE-WELSH REALTY CORPORATION.
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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Newest Homes for Sale in Dubois County
View the newest homes listed in Dubois County in the last 10 days:
445 3rd Avenue Jasper, Indiana
4 Beds 6 Baths 6,861 SqFt 22.830 Acres
Listing courtesy of Steve Lukemeyer from F.C. TUCKER EMGE.
102 OAK Street Huntingburg, Indiana
3 Beds 3 Baths 1,808 SqFt 0.689 Acres
Listing courtesy of Delmar Bromm from HOFFMAN & MULLEN REALTY INC.