There are some common money mistakes to avoid when you apply for a mortgage.  And they’re common because they’re easy to make!  So before you apply, think about these simple little blunders you can avoid:


5 Simple Money Mistakes You Shouldn’t Make:

  • Don’t move money around! It may seem like no big deal, but lenders are looking to make sure you have steady money in the bank.  Homeownership brings a bunch of different factors into your life – the down payment, the monthly payment, and any home improvement or repairs that come up.  Even things like buying stock can lower your net value, or moving money around your separate accounts can seem unstable. This is one of the top money mistakes that’s easy to avoid – just don’t touch it!
  • Don’t take a new job or a leave of absence. Lenders are relying on you receiving steady paychecks and maintaining a job. They also generally will look for you to be employed in the same place or field for at least 2 years.  So even if you are planning to job hunt, plan on doing it after you move – because this money mistake could delay your approval.
  • Opening or closing credit cards. Ok, here’s the deal.  People have strong opinions when it comes to credit, but from a lenders perspective, the biggest mistakes to avoid are… making changes. By that, we mean opening new lines of credit OR closing credit cards. Opening a new line of credit dings your credit score (yes, even the department store ones – be aware!) But closing them is also something you have to do strategically. Lenders look for you to be using less than 30% of your available credit – so closing a card or two seems small, but could put you over that pretty easily.
  • Don’t wait till last minute to work on your credit. Credit takes time to build, and you need a solid credit history before applying for a mortgage.  Start working on your credit 2 years in advance.  Keep in mind, having no credit is also a problem — it means that as a lender, we have no idea how well you keep up with payments.  And that’s a big thing we have to consider.
  • Avoid major purchases! Lenders can run credit reports even in the hours just before a closing.  If you are looking to say, buy a car or plan a big vacation, wait until after you’ve purchases your home.  This goes along with the first money mistake listed – lenders can get spooked if they see large amounts of money disappearing from your account.  Don’t let it be you!


Thankfully, none of these money mistakes are hard to figure out once you know about them. So congratulations, you’re well on your way to getting a mortgage!  If you have any questions, we’re always just a phone call away.  We’re a Christian Mortgage Lender that values the same things you do – so don’t hesitate to reach out. We’re about you and your family, finding the home that you’ve always dreamed of, and a mortgage that works for you!




The Christian Mortgage Mom