Applying for a mortgage is one of the most common ways to fund your future home. But getting one isn’t always easy. If you want to ensure that your mortgage loan gets approved without any problems, you should avoid doing any of the following:

Changing Jobs

Changing jobs a few weeks before you have to meet with your lender could jeopardize your chances of having your mortgage approved. The bank who is financing your mortgage would want to make sure that your job is stable enough to give you the income to allow you to pay for the monthly amortization.

A new job feels unstable at this point especially if your income is different from your old job. For example, if you are receiving a fixed monthly income from your previous job and you work on commission basis in your new job, the difference in income source will look unstable from the point of view of the lender.

Falling Behind On Paying Your Bills

If your history shows that you are unable to pay your smaller bills on time, what will happen if you have to pay bigger bills like your mortgage payments? Your lender will look at your payment behavior to ensure that they do not approve a borrower who cannot pay on time.

Maxing Out Your Credit Cards

Swiping your card too often could mean that your income is not enough to cover your monthly expenses or you just really hate paying with cash. Either way, your bank will not see it as a positive sign. The ratio of your credit utilization or the debit-to-credit ratio should ideally not rise above 30% in order to get a good credit score.

Getting Into Too Much Debt

You are considered a risky borrower if your debt is too high. Keep debts low as much as possible if you want your mortgage to be approved. Do not take out unnecessary loans.

Buying High Ticket Items

Do not buy a new car or expensive item before you apply for a mortgage. Lenders would look at this expense as another thing that could eat up your resources. These could give them reason to doubt that you will not be able to pay for both your mortgage and your monthly payments on the new car at the same time.

Closing Your Credit Card Account

Closing your credit card after you have paid off your debt might be a good idea, but if you are applying for a mortgage, you might want to rethink your decision. Your credit card is considered as available credit which adds to your credit score somehow. Closing your account while you are applying for a mortgage shrinks your available credit. This would consequently cause the denial of your mortgage application.

Co-Signing A Loan

When you co-sign a loan with someone, you are telling the lender that in case that person is unable to make payments, you can help the person out or even stand in for the person you co-signed with. That means that if he defaults, you get to shoulder what he owes or something similar. From your lender’s point of view this is considered as an added risk. They would thus be more prone to deny your loan application.

In many cases, people get denied for loans even if they are truly credit worthy or are capable of making regular payments on their mortgage. Do not make these simple mistakes that could make your lenders doubt your creditworthiness.