5 Things to Avoid During the Home Loan Process

If you want to be pre-qualified for a mortgage or start the mortgage application process with Mortgage Broker Surrey, avoid taking certain actions before getting that ball rolling. If these things are delayed too long, they could potentially delay your mortgage closing or put you at risk of not being approved at all. If you’re going to take out a loan, here are some things to avoid before your loan closes.

Avoid Making a Large Purchase

Avoid any large purchases. Regardless of the type of credit card you have, if there are any major purchases, you shouldn’t make them until your debt is paid off. Large cash purchases will use up your savings which you need for a down payment and closing costs, and a large credit purchase will increase your debt-to-income ratio and credit utilization which are used to qualify or disqualify you for a loan. You want to be smart about paying off your home.

Avoid Opening or Closing Lines of Credit

Your credit can be pulled at any point in the mortgage process up to the date of closing. Opening a new line of credit or closing an existing one can negatively impact your credit score, which, in turn, can negatively impact your chances of getting approved. It’s important to protect your credit score when you apply for a mortgage with a mortgage specialist by maintaining an active payment history and keeping your credit balances low. Approval may not be guaranteed after a pre-qualification. If your credit score changes, there is a chance you might not be approved. Make sure to pay your credit card bills on time and avoid spending more than what you have coming in.

Avoid Missing Credit Card, Bill, or Loan Payments

Your payment history plays a huge role in determining your credit score, and that’s an important part of determining your eligibility for a loan. It is very important that you pay your bills and other financial obligations on time. A single late payment can damage your credit score. You should pay especially close attention to your spending when you apply for a home loan, so that you don’t spend more than you can pay back in a timely manner.

Avoid Starting a New Job

When you’re suddenly out of work, it can be unexpected and out of your control. If you are seeking employment or changing fields, it is best that you wait until your mortgage has closed before making such moves. Lenders look into your employment history to see if you’ve had a steady job. Unemployment is not an advantage or disadvantage for obtaining a home loan. When applying on your own rather than jointly, it can result in disapproval, particularly if you’re planning to move.

Avoid Making Large Deposits

Don’t make a big deposit when you’re waiting for a mortgage loan. It will make it harder for your mortgage broker Surrey to approve your mortgage. Payroll deposits and transfers between accounts are generally fine, but other larger deposits (usually more than $1,000. must have an explanation. When you make a deposit, your lender will want to know the details of its source and purpose. This can slow down the home loan process or even lead to denial if you can’t provide proof of its origin or purpose. It’s always best to hold off on depositing larger amounts until after your loan has closed. It’s best to discuss this with your loan officer at the start of your application, so you can properly document this expense, and avoid any issues in processing your application.


Working with a knowledgeable mortgage specialist can be an important part of ensuring you get the best loan for your home purchase. You’ll be walked through the entire loan process and be protected from any pitfalls that could prevent your loan being approved. If you have any questions about a home loan or you would like to speak to one of our experienced loan officers, contact us today.

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