Seven Ways to Mess Up A Mortgage Application

Real Estate

Want to pay more for your mortgage? Even better, how would you like to be denied a loan altogether? Here are some tried and true ways to mess up the mortgage process.


Miss some credit card payments. Your lender will be verifying your credit rating. You can pay more for your loan by missing payments and wrecking your credit score.


Check your Credit. Constantly.  Too many credit checks will lower your score, and credit ratings aren’t like golf. The lower your credit score is, the more you’ll ultimately pay in interest. Unless you’ve decided you would like to pay more, leave the credit checks for the lender.

Buy Something Big. Bonus points if you load up on credit debt to buy that new car, luxury cruise or deluxe furniture set.

Meddle with Your Finances.  Change banks and swap your accounts. Apply for new credit cards. Cosign a loan. Make undocumented cash deposits.  Change your employment status.  By making it harder for your lender – and Federal Regulators – to make sense of your finances, you’ll ensure a longer wait, more paperwork and perhaps a much worse deal for yourself in the end.

Delay When Providing Your Lender Requested Paperwork.  Your lender has deadlines, too. Doing your part to miss them can create more paperwork, lengthy delays or even sink the deal. Providing incomplete paperwork is another excellent way to make everyone’s job harder and put your loan at risk.
Dip into the funds you’ve reserved for closing. You promise you’ll pay it back, right?


Come with Cash. If you REALLY want to mess up your mortgage approval, forget the bank statements and bring a stack of bills. Undocumented cash cannot be counted when you’re financing your mortgage, making this basically the same as showing up with no money at all.


The Rocky Mountain Home Team would like to thank Bonnie Marlette, Mortgage Loan Officer at Bay Equity, for her assistance with this article.