[dropcap type=”2″]G[/dropcap]etting a mortgage can be a lengthy process, particularly when you have a pre-approval built into it. Many people start the application process before they even begin looking for a home by getting a pre-approval. The purpose of this pre-approval process is that it shows a home seller that you are capable and qualified financially to get the home. However, it also involves a bit of paperwork and extends the mortgage process. Other delays in the inspection and negotiation periods can further lengthen the time from the initial mortgage approval and the final approval. As a result, you will likely have a significant wait between your application and final approval of the mortgage.

During this time frame there are a number of things that can impact your mortgage application and lead to a higher interest rate or a rejection of the mortgage that was previously approved. Any pre-approval is dependent on other factors and it is possible to lose your pre-approved mortgage amount. This article will highlight:

“Eight Things You Should Avoid Doing Between Your Mortgage Application and Final Approval”.

1. Default On Debt:

There are a number of different factors that can significantly impact your credit rating. None of these factors have as negative an impact as an actual default on any debt that you have outstanding. Defaulting on any existing debt will cause your credit score to plummet. As such, it is important to avoid this at any length. Do not declare bankruptcy either. This will likely prevent you from being able to take out a mortgage of any kind.

2. Being Late on Any Debt Payments:

Any late debt payments will show financial difficulties to a lender and may lead to them cancelling your mortgage approval. Be sure to remain current on all of your existing debt to make sure that you show a positive view to a potential lender in order to get a top mortgage interest rate.

3. Switching Jobs:

Lenders like to see consistency with earnings. Switching jobs before a mortgage has been finalized may have a lender questioning the reliability of your income source, even it was a positive move financially. As such, if possible, defer the change in a job until after a mortgage has been approved.

4. Borrowing New Money:

Any new debt will be viewed as negative on your credit history. New borrowings without a lengthy repayment history will cause your credit score to decrease and it is better to delay this until after you have completed your mortgage loan in order to reduce the chance that it amy impact your credit score.

5. Taking out a Credit Card:

While you are waiting for your mortgage to go through it is best to avoid taking out new credit cards. Newly issued debt has a negative impact on your credit history and a new credit card is no exception. Wait until your mortgage is approved before doing so.

6. Checking Your Credit Too Much:

Checking your credit too much can lead to a decline in your credit score. As such, it makes sense to avoid checking it as much as you typically do in order to avoid the negative impact of these credit scores. Your score will typically not fluctuate much on a daily basis and there is no reason to check it all that frequently as a result. Check your credit score before you apply for a mortgage and leave it at that.

7. Making Too Many Large Purchases:

A house purchase will likely lead to a number of large purchases once you assume ownership. You will likely have to buy new furniture, incur moving expenses, and prepay property taxes. Do not exacerbate your financial pressure by making too many large purchases before you finalize your mortgage purchase. You may ultimately scare lenders away.

8. Making Large Bank Transfers:

While you will likely have to make large transfers to get your down payment amount ready for your home purchase it is best to have as few large financial transactions as possible prior to entering into a mortgage. Make sure that financial transactions are clearly explained on all checks to keep a good paper trail to support your financial claims. Make sure transfers from friends or family members are clearly identified as gifts or have repayment terms detailed in a formal agreement.


There are many things that can delay or lead to a rejection of a mortgage loan request. By avoiding these eight common mistakes when finalizing your mortgage you will improve your chances of finalizing your home purchase.