5 Common Mortgage Mistakes That Cost You Money
After years of closings, the same handful of mistakes keeps showing up — and every one of them is avoidable. None of these are exotic. They are ordinary decisions made at the wrong moment. Here are the five we see most, and how to sidestep each one.
Mistake 1: Financing a car before closing
It is almost a cliché in this business: buyer goes under contract, gets excited, and buys a truck for the new driveway. That new payment changes your debt-to-income ratio, and underwriting checks your credit again before closing. We have watched car loans kill home loans days before the closing table.
The same goes for furniture financing, new credit cards, and co-signing for a relative. Nothing new until the keys are in your hand.
The truck can wait. No new debt of any kind between application and closing.
Mistakes 2 and 3: Moving money and switching jobs
Underwriters must source every large deposit in your accounts. Shuffling cash between accounts, depositing money from a relative without a gift letter, or making big unexplained deposits creates a paper chase that delays closings. Keep money still, and document anything that moves.
Job changes are the same story. A move within your field with steady pay is usually workable — but tell your lender first. Switching to commission-based pay or self-employment mid-loan can undo an approval entirely.
During a loan, be predictable. Still money and a steady job make underwriting boring — which is exactly what you want.
Mistakes 4 and 5: Skipping pre-approval and not shopping your loan
Shopping for homes without a pre-approval means negotiating from weakness, and discovering credit surprises on a deadline. Get the pre-approval first — it is free, and it converts you from a browser into a buyer.
And at the other end: taking the first quote you get without comparing. Rates and fees vary between lenders more than most people expect, and credit scoring counts multiple mortgage inquiries within a short shopping window as a single pull. Compare Loan Estimates side by side; the differences are printed right on page one.
Pre-approval before shopping, comparison before committing. Both cost nothing and save real money.
The common thread in all five? They are cheap to avoid and expensive to fix. If you want a lender who flags these before they happen, call Steve Barton at 214.673.1319 or visit corecommunitymortgage.com.
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