Things To Avoid When Applying For a Mortgage

Securing a mortgage is a significant milestone in one’s life, often marking the transition to homeownership or investment in property. However, the journey towards obtaining a mortgage can be fraught with challenges, especially if you need to be mindful of certain pitfalls. In this guide, we’ll discuss some crucial things to avoid when applying for a mortgage to increase your chances of success and smooth out the process. 

Whether you’re a first-time homebuyer or a seasoned investor, an Abbotsford mortgage broker can be a good fit for all your concerns. Additionally, these tips can help you confidently navigate the complex world of mortgages.

When Applying for a Mortgage, You Should NOT:

Change Jobs, Become Self-Employed, or Quit Your Job

One of the most critical factors that lenders consider when assessing your mortgage application is your employment stability and income. Abrupt changes in employment status can raise red flags for lenders, potentially jeopardizing your chances of approval. Maintaining a steady job and income stream throughout the mortgage application process is essential. 

If a career change is inevitable, consult a mortgage broker beforehand to understand its potential impact on your application and explore alternative solutions.

Co-sign a Loan for ANYONE

Co-signing a loan for someone else may seem like a noble gesture, but it can have dire consequences for your financial standing, particularly when applying for a mortgage. When you co-sign a loan, you assume responsibility for the debt if the primary borrower defaults. This additional financial liability can significantly impact your debt-to-income ratio and creditworthiness in the eyes of mortgage lenders. Therefore, it’s best to avoid co-signing any loans, regardless of your relationship with the borrower, to safeguard your mortgage approval prospects.

Buy a Car, Truck, or Van (Unless You Wish to Live in It)

While the allure of a shiny new vehicle may be tempting, making significant purchases like a car, truck, or van before securing a mortgage is ill-advised. Such purchases can increase your debt load, disrupt your debt-to-income ratio, and potentially derail your mortgage application. Lenders prefer applicants with stable financial profiles and minimal outstanding debts. Therefore, postponing any major purchases until you’ve successfully obtained a mortgage is prudent. Consult a knowledgeable mortgage broker in Abbotsford, like Satbir Bhullar, for personalized advice tailored to your financial situation. You’ve heard it right! We will guide you you the right path and make the most of it. See us get the best benefits possible!

Skip a Payment or Make Any Late Payments

Maintaining a pristine credit history is paramount when applying for a mortgage. Even a single missed or late payment can tarnish your credit score and raise concerns among lenders regarding your financial responsibility. Prioritize timely payment of all bills and obligations, including credit cards, loans, and utilities, to demonstrate your reliability as a borrower. 

Consistent on-time payments can bolster your creditworthiness and strengthen your mortgage application. If you’re facing financial difficulties, communicate proactively with your creditors and seek assistance to avoid derogatory marks on your credit report.

Increase Your Debts

In the months leading up to your mortgage application, it’s crucial to exercise restraint and avoid accumulating additional debts. Taking on new credit cards, personal loans, or other forms of debt can inflate your debt-to-income ratio, making you appear riskier to lenders. Aim to reduce existing debts and refrain from engaging in new borrowing activities until you’ve secured a mortgage. Your Abbotsford mortgage broker can offer valuable insights into managing your debts and optimizing your financial profile for mortgage approval.

Close Any Credit Accounts

Closing credit accounts may seem wary of decluttering your financial portfolio, but it can inadvertently harm your credit score and mortgage prospects. The length of your credit history and credit utilization ratio are crucial factors in determining your creditworthiness. Closing old accounts can shorten your credit history and increase overall credit utilization, potentially lowering your credit score. Instead of closing accounts, focus on responsibly managing them and maintaining a healthy credit mix to enhance your mortgage eligibility.

Spend Money You Have Put Aside for Closing

Saving for a down payment and closing costs is a significant milestone on the path to homeownership. However, it’s essential to exercise discipline and refrain from dipping into these funds for non-essential expenses. Depleting your savings earmarked for closing costs can leave you short of funds when it’s time to finalize the mortgage transaction. 

Avoid unnecessary expenditures and preserve your savings diligently to ensure a smooth and stress-free closing process. Your mortgage broker can guide you in estimating closing costs and budgeting effectively for homeownership.


The mortgage application process requires careful planning, foresight, and financial discipline. By avoiding common pitfalls such as job changes, co-signing loans, excessive spending, and late payments, you can significantly improve your chances of securing a mortgage on favorable terms.

Partnering with a reputable mortgage broker in Abbotsford can provide invaluable assistance and guidance throughout the application process. Satbir Bhullar can ensure a seamless and successful journey towards homeownership. Prudence and patience are key virtues when tackling the path to mortgage approval.