3 Mortgage Loan Application Mistakes to Avoid

David Goldhirsh
Written by David Goldhirsh
Updated June 15, 2021
Always play it safe and disclose everything directly to your loan officer, says Goldhirsh. (Photo by Ray Alderete)

No one wants their loan application to be denied.

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Here are three simple tips everyone should know before submitting a new mortgage loan application. This might seem like common sense, but in my many years as a home lending professional, I’ve seen so many applications get declined over some these common, easy-to-avoid mistakes. Put your mortgage application on the right track to approval by following these simple steps:

1. Be 100 percent accurate on your home loan application

Mortgage lenders use modern technology and sophisticated quality control tools to verify all pertinent information. In the current lending environment, most lenders have a zero tolerance policy for application inaccuracies. Listing inaccurate information, even if by accident, can create red flags on your application and completely stop the loan process in its tracks.

Don’t let this happen to your mortgage loan application!

2. Don’t omit anything

One of the most common mistakes applicants make on their home mortgage application is simply not listing information they think isn’t pertinent. Failure to list second jobs, being a loan co-signer for a family member or friend, an old divorce, bankruptcy or job gaps are all good examples of this.

It’s not always the applicant’s fault. Sometimes people simply forget, don’t have all the facts available or were misinformed by a friend or family member about the application process. The problem is that the underwriter’s opinion about whether or not the loan can then move forward can vary, depending on a borrowers specific situation.

3. It’s tell-all time

Always play it safe and disclose everything directly to your loan officer. An experienced officer can help you make the right decision and knows exactly what information needs to be disclosed when applying for a loan. By simply disclosing all the facts at the time of loan application you can help avoid unnecessary denials and perhaps unpleasant last-minute surprises before closing.

As always, if an applicant is not sure, it is always best to ask questions and disclose everything up front before you hit submit. Doing so will help avoid being surprised with a mortgage denial letter later.

This article by David Goldhirsh originally appeared on his blog.

As of Jan. 2, 2015, this service provider was highly rated on Angie's List. Ratings are subject to change based on consumer feedback, so check Angie's List for the most up-to-date reviews. The views expressed by this author do not necessarily reflect those of Angie's List.

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