The Blog of MBI Real Estate

What to Avoid when Trying to Get A Mortgage


Buying a home is one of the most rewarding things you’ll do in your lifetime. Though, home buying also comes with its challenges. One of those challenges is the mortgage approval process. A mortgage is tricky, at best, which is why we decided to make a list of a few things to avoid when trying to get a mortgage.

High Balance Credit Cards

A common misconception is that as long as you’ve made credit card payments on time, your score won’t affect you during your home buying process. This is not the case. Your credit card utilization makes up 30% of your overall FICO score. High credit card balances will have a significant impact on your scores. Pro Tip: Having your credit card scores under 15% of the limit will maximize your score before applying for a mortgage.

Quitting Your Job

Changing your job, whether you lose it, go on maternity leave, or transfer departments can throw a big curveball towards your mortgage approval ambitions. Unfortunately, thanks to technology systems, they will often flag any recent job change as an indication of a high-risk lender. A mortgage lender will have difficulty evaluating your financial stability when you have work gaps or career changes. Pro Tip: When applying for a mortgage loan try and stay as stable as possible.

Accepting Undocumented Cash Gifts

You might be thinking, what’s wrong with accepting cash gifts or loans from friends and family? The problem is that failing to give your mortgage lender a heads up on incoming cash can cause a ruckus during the loan process and end up slowing it down. No matter where you get extra money from, a lender is going to want to know where it is coming from. Pro Tip: Let your lender know of all unexpected cash that comes into your hands.

Making Big Purchases

Buying a home might be one of the biggest purchases you will make in your lifetime. This should be reason enough not to go out and spend away during your home buying venture. The key to securing a mortgage approval is to start making rational decisions when it comes to your budget…at least for the time being. One purchase can make the difference between getting approved or not. Pro Tip: If your thinking of making a big purchase after you apply for a home loan, don’t.


If you enjoyed this post, please consider leaving a comment or subscribing to the RSS feed to have future articles delivered to your feed reader.