Ask any homebuyer what the toughest part of the process is, and you’ll hear it again and again: the mortgage. Even lenders admit it can be stressful and confusing. But here’s the good news—knowing what to avoid can save you time, money, and heartache.
Here are six common mortgage missteps (and how to sidestep them).
1. Waiting for the Perfect 20% Down Payment
Yes, putting down 20% helps you avoid private mortgage insurance (PMI). But waiting too long to save that much could backfire—especially with today’s low rates and rising home prices. By the time you’ve hit your target, that “dream house” might cost you more in the long run.
Tip: Talk to a lender now to explore options. A home affordability calculator can also give you a quick snapshot of what’s realistic with your current savings.
2. Talking to Only One Lender
Half of U.S. buyers meet with just one lender. Big mistake. Rates and fees vary widely, and even half a percent difference on a 30-year loan could save you thousands.
Tip: Meet with at least three lenders. Ask each for a good-faith estimate so you can compare apples to apples on interest rates, fees, and terms.
3. Stopping at Pre-Qualification Instead of Pre-Approval
Pre-qualification is a casual estimate based on self-reported numbers. Pre-approval is the real deal—verified income, credit check, underwriter review, and a letter proving you’re ready to buy.
Tip: If you’re serious about making offers, you need pre-approval. Many sellers won’t even consider bids from buyers without it.
4. Shuffling Money Around
Your lender will review your finances multiple times, not just at pre-approval. Moving large sums of money in or out of your accounts during the process is a red flag and can delay—or even derail—your loan.
Tip: Once you’re under contract, keep your accounts steady. No major transfers until after closing.
5. Opening New Credit Lines
New credit inquiries lower your score and signal desperation to lenders. Applying for new cards or loans before closing could change your terms—or get you denied altogether.
Tip: Hold off on new credit until your keys are in hand.
6. Changing Jobs Too Soon
Lenders want to see consistent income, usually two years in the same line of work. Switching jobs mid-process can complicate (or jeopardize) your approval.
Tip: If possible, wait until after closing to make a career move. If you must switch jobs, notify your loan officer immediately and be ready to provide proof of your new employment and income.
The Bottom Line
The mortgage process doesn’t have to feel like a minefield. By avoiding these common mistakes—and working closely with your lender—you’ll clear the path to homeownership with fewer surprises.
Contact Gulf Life Real Estate and start working with a professional who can help you navigate all aspects of the home buying process!
