Avoid budget, credit, documentation, shopping, inspection, and closing errors that can derail a mortgage.
Shopping before budgeting
A listing price should not set the budget. Start with the full payment and cash reserve needed after closing.
Changing credit
Opening accounts, raising card balances, missing payments, or financing purchases can change credit and DTI during underwriting.
Moving money without records
Large transfers and deposits may require documentation. Keep clear records and avoid unnecessary account movement.
Focusing only on rate
The lowest advertised rate may include points, short lock periods, assumptions, or fees that do not fit the actual transaction.
Skipping property diligence
Do not treat appraisal, inspection, title, insurance, and loan approval as the same review. Each addresses different risks.
Questions to ask before acting
- What assumptions could materially change the result?
- How much cash will remain after closing?
- What happens if taxes, insurance, repairs, or income change?
- Which terms should be confirmed in writing?
Bottom line
Use this guide as a framework for better questions and more complete comparisons. Actual eligibility, pricing, legal rights, and transaction requirements depend on the borrower, property, lender, program, contract, and location.