5 Notable Things to Avoid After Applying for a Mortgage

Buying a home can be a pretty daunting and difficult process. This is doubly true when it comes to applying for a mortgage. Because of this, it is in your best interest to do everything you can to ensure that your application is approved. Now, this is easier said as there are a slew of things that you’ll have to take into consideration when it comes to mortgage applications. Aside from this, there are also a multitude of things that you’ll want to avoid when applying for a mortgage. To help simplify things, we thought it would be useful to put together a list of things that you should be wary of. If this is something that you want to learn more about, read on as we list down five notable things to avoid after applying for a mortgage.

Don’t Make Any Large Purchases

New debt comes with new monthly obligations. New obligations create new qualifications, and this can lead people to take on higher levels of debt than they originally planned. With higher debts to income ratios, borrowers with new debt may find that they’re no longer qualified for their mortgages.

Don’t Co-Sign Other Loans

When you co-sign a loan, you’re obligated to repay it if the borrower fails to pay. As a result, your debt-to-income ratio rises, which makes it more difficult to get a loan. While we understand that you may want to help, co-signing a loan will not bode well with lenders as it makes you more of a risk in their eyes.

Don’t Switch Bank Accounts

In order to approve your loan, you’ll need to provide the bank with records that prove you have sufficient assets. That task is easier when your accounts are consistent. Before you transfer any money, speak with your loan officer.

Don’t Apply for New Credit

Your credit score will fall with each new account you open, so avoid opening new accounts when you are seeking a mortgage, applying for a new credit card, or buying a new car. While it may be tempting to apply for a quick loan to buy something you have your eye on, potentially lower interest rates and better terms can be had if you hold off.

Don’t Close Any Credit Accounts

Many people think that having less available credit will make them less risky and more likely to be approved for loans, but this is not true. Your score considers the length and depth of available credit and total usage of available credit. Closing accounts will decrease the length and depth of credit history, and close some lines of credit, which will lower your total usage of credit.


We hope this article proves to be useful when it comes to helping you understand the different things that can negatively affect your mortgage application. Any money issues, income concerns, or changes in your credit should be reviewed with your loan officer. Remember, everything from your job or employment status to new debt could impact your ability to get a home loan. The best course of action is to fully disclose your situation, intentions, and plans before you act independently. Be sure to keep everything that we’ve discussed here in mind so that you can make the most informed decision that will give you the best shot at securing your mortgage.

If you’re looking for a mortgage lender in Sacramento, you’ve come to the right place. Mortgages and loans can be tricky to navigate for many homeowners, but with the help of Hawkins Home Loans, this process becomes infinitely easier.