3 Mistakes To Avoid When Applying For A Mortgage

Declined Mortgage Application Form

If it’s your first time to buy a house, it is quite easy to get caught in the excitement. You might overlook some important details that may delay the approval of your loan application. Worse, these mistakes may cause the lender to decline your application.

Other than settling for unfavorable mortgage rates in Utah, here are some loan application mistakes you should avoid:

Failing to Get Pre-approved

Getting pre-approved is important, as it allows you to know if you qualify for mortgage financing. A mortgage loan pre-approval bears more weight than basic loan pre-qualification because a lender will evaluate your entire financial status. A pre-qualification only estimates the amount of loan you can get. A pre-approval is based on your actual financial history, and not estimates.

Improper Credit Behavior

Some people think that using a lot of credit is okay, as long as you pay on time. This is not the case. Using a sizable portion of your credit does not reflect well on your credit score. As a result, it can affect your mortgage application in a negative way because it shows you are dependent on borrowing. Lenders will frown on that.


In the past, you can window-dress your employment, income, or credit rating on your mortgage applications and get away with it. Not anymore. After the recent financial crisis, lenders have become stricter in reviewing loan applications. They will notice even the most innocent-looking typographical errors. They will verify any information you disclose in your mortgage application.

Make sure everything is correct, especially your taxes. Otherwise, you risk being charged with mortgage fraud. In addition, make sure your application is completely filled up before signing it. There are cases when careless loan officers fill in the missing information. You will be liable if they insert false or faulty information.

Buying a home is one of the biggest financial decisions you will make in your life. Don’t jeopardize it by committing serious but avoidable mistakes in your mortgage loan application.

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