Common Mortgage Application Mistakes and
How to Avoid Them

Applying for a mortgage can be a daunting process, especially for first-time homebuyers. At American National Bank, we strive to make this journey as smooth as possible. Here are some common mortgage application mistakes and tips on how to avoid them.

1. Not Checking Your Credit Score Early Enough

Your credit score plays a crucial role in determining your mortgage eligibility and interest rates. Many applicants make the mistake of not checking their credit score early in the process.

How to Avoid It:
Check your credit score at least six months before you plan to apply for a mortgage. This gives you time to address any discrepancies or improve your score if needed. We can help you understand your credit report and provide guidance on improving your score.

2. Failing to Get Pre-Approved

Skipping the pre-approval process can lead to disappointment and delays. Pre-approval gives you a clear idea of how much you can afford and shows sellers that you are a serious buyer.

How to Avoid It:
Get pre-approved before you start house hunting. This will streamline your search and give you a competitive edge in the market. We can assist you with the pre-approval process, ensuring you have a clear understanding of your budget.

3. Making Large Purchases Before Closing

Big purchases, like buying a car or furniture, can affect your debt-to-income ratio and jeopardize your mortgage approval.

How to Avoid It:
Hold off on any significant purchases until after your mortgage has closed. Keep your financial situation stable during the application process. We can provide personalized advice on managing your finances during this critical period.

4. Not Providing Complete Documentation

Incomplete or incorrect documentation can cause delays and even result in your application being denied.

How to Avoid It:
Work closely with your mortgage loan officer to ensure you have all the necessary documents. Double-check everything before submission. We will guide you through the documentation process, making sure you have everything you need.

5. Changing Jobs During the Application Process

A job change can disrupt your mortgage application, especially if it affects your income stability.

How to Avoid It:
If possible, avoid changing jobs during the mortgage application process. If a job change is unavoidable, inform your loan officer immediately. We understand that life happens, and we can help you navigate any changes in your employment status.

6. Ignoring Additional Costs

Many applicants focus solely on the mortgage payment and overlook other costs like property taxes, insurance, and maintenance.

How to Avoid It:
Budget for all homeownership costs, not just the mortgage. We can help you estimate these expenses to ensure you’re prepared for all aspects of homeownership.

Feel free to reach out to us with any questions or concerns. We’re here to help you achieve your homeownership dreams with confidence and ease.