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Asante Realty - MLS listings in the Tri-Valley. Named the Top Realtor® In San Ramon.

One of the most exciting purchases anyone can have is buying a home. It’s a dream for many if not all.

However, things do not always go as planned. There are many reasons why, and the following could be several of many.

If you’re a homebuyer and you’re wondering, “Why is my mortgage not approved?” or “Why is it taking too long for my mortgage to be approved?”, you might have committed these mistakes:

1. Depositing Cash to Your Bank Account

What Not to Do After Applying for Mortgage - Depositing Cash

Depositing cash into your account is something that should be done normally, however, your transactions should be properly documents with your loan officer so nothing will be surprising.

2. Making a Large Purchase

What Not to Do After Applying for Mortgage - Making a Large Purchase

A large purchase could be a car loan, a new furniture set or even luxury items. Increasing your debt also increase your debt-to-incomes ratios, which lead to riskier loands. You may get disqualified in your application because of this.

3. Co-sign Loans for Anyone Else

What Not to Do After Applying for Mortgage - Co-sign loans for anyone else

It’s important to let the people around you know that you applied for a mortgage so that they would not ask you to co-sign with them. The obligation that comes with co-signing also increases your debt-to-income ratios. You might not be the one making payments when you co-sign but these payments will also be counted.

4. Change Your Bank Accounts

What Not to Do After Applying for Mortgage - Change your Bank Accounts

The lenders will track your assets. If you change your bank accounts after application, it will send the wrong signal. You need to show that you money flow is consistent and you are working with the lenders to make the process easier and that you have nothing to hide.

5. Apply for New Credit

What Not to Do After Applying for Mortgage - Apply for a New Credit

 It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO® score will be impacted. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

6. Close any Credit Accounts

What Not to Do After Applying for Mortgage - Close any Credit Accounts

Remember three factors that affect your credit score: the length of your credit history, its depth and your usage of credit as a percentage of available credit. When you close credit accounts, those three will be negatively affected and may lead to disqualification.

7. Talk to Your Loan Officer Instead

Basically anything that has to do with money and payments, you should be able to discuss with your loan officer. That also includes any changes of employment status or job. Leave nothing unknown to your loan officer so that you’ll get a huge chance for your application to be approved.


You can avoid making these mistakes and more if you work with a realtor who’s an expert in the field. Need one around East Bay, California? Call us today!

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