Common Mistakes to Avoid When Applying for a Mortgage

Approvals slow down for predictable reasons. Here’s the short list to keep your file clean and fast.

The Do/Don’t Checklist

Do: keep pay and deposits steady, respond within 24 hours, and maintain low credit utilization.

Don’t: open new accounts, move money between banks without documentation, or finance furniture/vehicles before closing.

The Big Five Pitfalls

1) New debt that spikes DTI.

2) Large cash deposits with no source.

3) Late payments during the process.

4) Quitting or switching jobs without a heads‑up.

5) Skipping homeowner’s insurance shopping until the last minute.

File Clean‑Up Moves (30 Days Before You Apply)

Pay revolving cards down, gather two months of statements for assets, fix report errors, and collect tax documents. If you’re self‑employed, prepare a YTD P&L and keep business/personal funds separate.

FAQs

Q: Can I use cash for closing?

A: You can use funds that are ‘seasoned’ (sitting in an account), but underwriters cannot accept undocumented cash deposits.

Q: Will a soft credit pull hurt my approval?

A: Soft pulls don’t change scores. We’ll use a hard pull for underwriting.

How Jaffe Home Loans Can Help

Have questions about your next step? Get a no‑pressure consult with Jaffe Home Loans. We’ll compare programs, run the numbers, and build a financing plan around your goals. Start your pre‑approval today.