Mortgage Mistakes

There are a number of things you should avoid doing before applying for a loan and during the loan process itself. Help ensure your loan experience goes smoothly by following the tips below:


  • Leave your money right where it is (same bank, same account) until your loan is closed.
  • Don’t make unsourceable cash deposits (hard to trace, hard to explain) to your bank account.
  • Deposits to your account that aren’t payroll or direct deposit income must be documented and sourced.
  • If you receive tips, keep a daily tip log to match your bank deposits.
  • If you sell personal property, like a car, you must prove that you owned the vehicle to begin with via a registration or receipt. When selling, you must keep a copy of the bill of sale and certified check.
  • Don’t co-sign anything for anyone.
  • Don’t use cash or money orders for your builder upgrade options.


  • A high-ticket consumer purchase, like a car or home theater system, can torpedo your ability to afford a home.
  • Increasing your consumer debt or, if you pay cash, decreasing your cash reserves could jeopardize your loan approval.


  • Changing jobs before or during the loan process will slow your loan approval, especially if the job is in a different line of work or at a lower rate of pay. More information must be verified.
  • If you’re an hourly employee, don’t work fewer hours. Updated pay stubs will be required before closing.


  • If it’s necessary to pay off bills to help you qualify for a loan, your loan officer will notify you. They will also show you the best way to pay off bills so that there’s proof that the bills have been paid.
  • Don’t increase your credit card balance or let your payments fall behind.

Even if you have been pre-qualified for a loan, please don’t make any changes to the above until you first talk to your lender, who can advise you of your options!

Talk to us!

We’re here to help you every step of the way. Simply fill out our contact form and one of our Expert Loan Officers will get back to you quickly. Have A Question About A Home Purchase, Reverse Mortgage, or Refinance? Call Townstone at 312-896-2110