3 Mistakes That Could Get Your Mortgage Application Denied

3 Mistakes That Could Get Your Mortgage Application Denied

Published On: November 3, 2021|Categories: Blog, Buyers, Home Buyers, Mortgages|Tags: , |

3 Mistakes That Could Get Your Mortgage Application Denied

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:

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

Scroll down for a closer look at each.

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.

Are You Thinking of Buying a Home in Dubois County?

Use our site to search homes for sale in Jasper, Dubois, Spencer, Martin and Davis counties, as well as all the surrounding communities. Unlike the “big name” sites out there, at Sell 4 Free Welsh Realty, our site is directly connected to our local MLS. We update it with new homes every hour.

Sign up for new listing alerts so you can stay on top of the newest homes for sale – and get price change alerts so you can stay ahead of other buyers and beat them to the hottest deals!

Start Your Home Search Here

Popular Jasper, Indiana Home Searches:

Newest Homes for Sale in Dubois County

View the newest homes listed in Dubois County in the last 10 days:

Step back in time with this nostalgic 1954 Stone ranch home, offering timeless charm.  From the Breezeway to the retro kitchen, this home Features 3 bedrooms and 2 full baths. This one of a kind residence includes a one-car garage for you convenience.  Inside, you'll find all the furniture is included but sellers are willing to remove it. The large living room has a full wall of stone with a gas log fireplace.   The basement has a curved brick fireplace and a bar with lots of sitting space. Patio area off the breezeway provides outdoor Embrace the character this home invites as you enjoy the simpler era. $219,000 Active

1015 Dorbett Street Jasper, Indiana

3 Beds 2 Baths 2,718 SqFt 0.310 Acres

Listing courtesy of Brenda Krempp from RE/MAX Local.

Welcome to your dream home! This inviting 3-bedroom, 1.5-bathroom home is perfectly situated on the edge of town, offering the perfect blend of tranquility and convenience. The large, insulated, and well-lit attached garage measures 27’ by 32’, providing ample space for vehicles, storage, and hobbies! Relax and entertain on the brand new front deck or the stunning two-level back deck, perfect for enjoying peaceful evenings and gatherings. Other updates include brand new dishwasher, additional insulation - December 2023, water heater - 3 years old, refrigerator - 3 years old.  Don’t miss out on this beautiful home! $249,000 Active

212 E 23rd Street Ferdinand, Indiana

3 Beds 2 Baths 1,284 SqFt 0.840 Acres

Listing courtesy of Courtnay Begle from RE/MAX REVOLUTION.

Location, Location, Location!  Right in the center of town, this house is close to shopping, restaurants, and activities.  This spacious Jasper home can be also used as a duplex.  New flooring throughout. The main level features a kitchen including the refrigerator, range, and dishwasher, 2 bedrooms, a full updated bathroom, laundry room that includes the washer and dryer, and living room.   The upstairs features a kitchen including the range and refrigerator, full bathroom, living room, 2 bedrooms including a walk in closest in the main bedroom along with a window unit.  The seller is offering a home warranty for piece of mind. $199,000 Active

1328 N Newton Street Jasper, Indiana

4 Beds 2 Baths 2,164 SqFt 0.130 Acres

Listing courtesy of Stacey Hurst from RE/MAX REVOLUTION.