Purchasing a home is an exciting and rewarding experience, but it can also be a stressful process. It is important to be prepared and informed in order to navigate the process successfully. To help make the journey go smoothly, here are some of the preapproval mistakes to avoid doing when buying a home. Be sure to review each home buyer tip thoroughly and consult your loan officer if you need further explanation.

Don’t Make Changes To Your Work Schedule

It is important to maintain your current work schedule and status from when you receive your preapproval. Making changes to your schedule, hours worked or employer could have a negative effect on your ability to obtain a loan. Additionally, if you change the number of hours you are employed for or switch jobs before or during the process, it can delay or complicate the necessary paperwork and negotiations. Therefore, having an established work schedule and maintaining steady employment throughout the homebuying process can make obtaining a loan easier and ensure that the process to qualify for your financing is as smooth as possible. If you must make a change to your schedule, hours or employer during the home buying process, consult your loan officer before making any changes.

Don’t Move Money Around

When buying a home, it is important to be aware of the potential consequences of moving money around between bank accounts. Moving large sums of money can be seen as suspicious activity by mortgage lenders and could lead to delays or even denial of your loan application. Additionally, opening new accounts for down payment savings can also raise red flags with lenders. It is best to avoid making any major purchases or moving large amounts of money during the mortgage process in order to ensure that your loan application runs smoothly.

Don’t Deposit Cash

It is important to be mindful of where any closing costs, earnest money or down payment funds come from. You shouldn’t deposit cash into any bank accounts that will be utilized for these payments as this can raise serious questions when trying to get a mortgage loan. Cash deposits can sometimes appear suspicious and could lead to delays or even denial of your loan application. In most cases, it is best to use checks, wire transfers or other ways of tracking money for these payments.

Don’t Have Your Credit Pulled

When buying a home, it is important to prevent anyone else from pulling your credit. Having too many people pull your credit can be seen as a red flag to lenders, and will likely negatively impact your credit score. It can even lead to delays or denial of your loan application. Therefore, only you should authorize any credit inquiries relating to the purchase of a home in order to ensure that your loan application process runs smoothly.

Don’t Open New Credit Accounts

It is important to avoid opening any new credit accounts when planning to purchase a home. Doing so can lower your credit score, which can lead to higher interest rates and even denial of the loan. Additionally, lenders will look at your debt-to-income ratio when making a decision on your loan application, so having too much debt could further hurt your chances of being approved for a home loan. Therefore, it is best to keep all new account openings to a minimum in order to maximize the chances of successfully obtaining a loan. If you need to open a new credit account, consult your loan officer before doing so.

Keep Your Job

Job security and financial stability are two major factors that lenders consider when evaluating a loan application. Keeping your job and staying employed is vital to you being qualified for a loan. Lenders will verify your employment with your employer in writing and again verbally just before closing. If the lender is unable to verify your employment, you will not be able to get qualified and your loan application may be denied. While this may seem like an obvious suggestion, I have had a borrower quit his job before closing thinking he would still be able to get a loan. He didn’t get the loan.


Purchasing a home is a major life milestone, and it is essential to be informed about important do’s and don’ts in order to make the best decisions possible. Avoiding these six things when buying a home – not making change to your work schedule, not moving money around between accounts, avoiding cash deposits, not having your credit pulled, avoiding opening new accounts and keeping your job during the process can help you have an easier time. With having the right knowledge and the help of an experienced loan officer, you can purchase your dream home with minimal stress or hiccups.


preapproval mistakes
I enjoy sharing my experience gained originating mortgage loans since 2003. When not helping borrowers with their mortgage needs, I enjoying spending time with family and friends. You can learn more about me here.