Applying for a mortgage is a significant step in achieving the dream of homeownership. However, the process can be overwhelming, especially for first-time homebuyers. To ensure a smooth and successful approval, it’s essential to navigate the mortgage loan application process with caution. In this blog, we will outline the dos and don’ts of applying for a mortgage to increase your chances of getting approved and secure the best possible terms.

The Dos:

Know Your Financial Standing:

Before starting the mortgage application process, understand your financial situation thoroughly. Check your credit score, gather all financial documents (bank statements, tax returns, etc.), and calculate your debt-to-income ratio. This information will give you a clear picture of what you can afford and help lenders assess your creditworthiness.

Save for a Down Payment:

The larger the down payment, the better your chances of mortgage approval and securing lower interest rates. Lenders see a substantial down payment as a sign of financial responsibility and a lower risk for default.

Shop for the Best Mortgage:

Don’t settle for the first mortgage offer you receive. Different lenders might offer various interest rates and loan terms. Shop around, compare rates, and negotiate with lenders to find the best mortgage deal that suits your financial needs.

Get Pre-Approved:

Getting pre-approved for a mortgage can make the home-buying process smoother. Pre-approval shows sellers that you are a serious buyer and have the financial capacity to make the purchase.

Keep Your Employment Stable:

Lenders prefer borrowers with a stable employment history. Avoid changing jobs during the mortgage application process, if possible, as it could raise concerns about your ability to repay the loan.

Maintain Healthy Credit Behavior:

Once you’ve decided to apply for a mortgage, avoid any major changes to your credit behavior. Pay your bills on time, avoid taking on new debt, and refrain from closing old credit accounts, as these actions could negatively impact your credit score.

Stay Honest on Your Application:

Be truthful and accurate when providing information for your mortgage application. Lying or misrepresenting your financial situation could lead to severe consequences and may even result in your application being denied.

The Don’ts:

Don’t Make Big Purchases:

Avoid making significant purchases, such as buying a car or furniture, on credit before or during the mortgage application process. Taking on new debt could affect your creditworthiness and raise concerns for lenders.

Don’t Co-Sign for Others:

Co-signing on a loan for someone else can impact your debt-to-income ratio and credit score. Until your mortgage is approved and finalized, it’s best to avoid co-signing for other people’s loans.

Don’t Close Credit Accounts:

Closing old credit accounts may seem like a good idea to reduce clutter, but it can negatively affect your credit score. The length of your credit history plays a role in determining your creditworthiness, so keep older accounts open, even if you don’t use them frequently.

Avoid Risky Financial Behavior:

During the mortgage application process, steer clear of risky financial decisions. This includes gambling, investing in volatile ventures, or taking on more debt than you can handle.

Don’t Switch Banks:

Stability is essential when applying for a mortgage. Avoid switching banks or moving money between accounts during this time, as it may raise questions for lenders.


Applying for a mortgage loan can be a nerve-wracking experience, but by following these dos and don’ts, you can increase your chances of securing a successful approval. Remember to be honest on your application, maintain healthy credit behavior, and shop around for the best mortgage deal. Additionally, consult with a reputable mortgage advisor who can guide you through the process and address any concerns. With careful planning and financial responsibility, you’ll be one step closer to achieving your dream of homeownership. Good luck!