There’s a massive amount of paperwork you have to send over when you apply for a mortgage. Before your loan is officially approved, one false move could stall the process and lead to even more paperwork. Credit.com points out a few factors that can hold up your approval.


After closing on my home and after getting final mortgage approval, I figured it was safe to go ahead and open up a credit card I’d been looking at to earn rewards points. I was wrong—our mortgage company contacted me almost immediately, asking why I opened up the card and that I submit a written explanation—and I hadn’t even activated it!


There are a few other events that can cause issues, Credit.com explains. Applying for another loan or line of credit may be a fairly obvious one, but there are a few other factors that can hold up the process, from large deposits to new sources of income. Here are a few tips they suggest:

Watch Your Spending: Now isn’t the time to shop for new furniture or get a new car to match your new house. When lenders track your credit usage during the mortgage application process, balance increases can have a negative impact on your approval... Don’t Change Jobs & Maybe Even Stall a Promotion: New jobs, becoming self-employed or even a promotion that is a lower base but higher commission could all put your mortgage into jeopardy, Lewis said. “Nearly every loan type requires a two-year history of commissions/bonuses/overtime,” Lewis said. Keep Your Cash Deposits to a Minimum: You might think you need to fluff up your bank balances before applying for a mortgage. But, if you’re going to do this, you probably don’t want to use cash. Each of your large deposits needs a source and cash can be seen as too mysterious….

It can be a sensitive process, so it’s worth knowing what triggers can set off your lenders. For more detail, head to Credit.com’s full story at the link below.

Photo by Cameron Parkins

6 Ways to Avoid Losing Your Mortgage After Pre-Approval | Credit.com