Challenges That Can Prevent You from Getting a Home Loan

Taking out a home loan takes some time for homebuyer hopefuls. However, if you’re finding difficulty in the loan process and trying to close a deal with a lender, there might be other reasons behind that bump in the road.

Certain hindrances can block you from getting a loan. It’s imperative to look out for these challenges and remove them to succeed in getting a home loan. Here are a few to keep an eye out for:

1. Engaging in Large Expenses

When you’re filled with the idea of getting a home soon, you might buy other luxury vehicles and items to show class. However, as great as those things can be, it may not be too smart to make that purchase in the middle of trying to take out a home loan. It’s a top priority to ensure that your money and budget are all in order and ready. Put it all in a list for next time.

2. Taking on More Debt

Having cash from a home loan can make you think that you have a lot of money. However, you need to remember that the home loan you’re getting will have to be paid off eventually. When a loan agent sees that you have a recent history of debt, they get the impression that you won’t be able to compensate them back. Thus, it’s not a smart move for them to grant you a home loan.

3. Shifting from Your Job

Resigning and getting a different job can show on the records of your home loan application. More often than not, loan agents will be wary of the sudden change and think that there may be some sort of instability behind the shift. Try and postpone the move until after you close a home loan deal just to avoid the possible complications that come with it.

4. Changing Bank Accounts

If you want a fresh start and change bank accounts, it may be better to postpone that as well. A loan agent typically asks for bank statements and records, which can be rather complicated when you’re transferring everything and changing accounts. It would be easier for lenders to turn down the application rather than waiting on the new records that can take a while. 

5. Ignoring Your Loan Officer

With a loan officer on board, it’s better to communicate rather than leave them with question marks and ignore them. They are the first person who has your best interests in mind, reminding you to protect your credit score and collecting documents to make the loan processing go a little smoother. 

6. Letting Late Payments Go By

Giving delayed payments for your utility bills can be a blunder to your credit score, preventing the home loan from being closed or creating an increase in your interest rates. As much as possible, strive to settle payments on time, especially amid the duration of your home loan processing. 

7. Getting an Advance Payday

An advance on your salary sounds good on any other given day, but it’s not ideal when you’re just sending out your home loan applications and trying to get approval. Payday is usually set for when your mortgage payment is due, so having that schedule altered can discourage a loan agent.


Taking these potential challenges into consideration can help you avoid landmines that will further delay your home loan getting approved. As long as you keep your credit score in check, avoid any changes, and communicate, you’re a step closer to getting your dream home. 

Looking for home mortgage loans? Hawkins Home Loans provides homebuyers with a stress-free process when buying a home, refinancing, and more. Schedule an appointment today!