You've found the perfect home and the bank prequalified your loan. The mortgage process is slowly working its way to final approval, but it can take between three weeks and several months to complete. A rejected mortgage is the last thing on your mind, but it can happen if you follow some poor habits. Some rejections occur from no fault of your own. For example, a home appraiser did not estimate the home's value correctly. Your mortgage amount may be too much or too little to cover the property price. This appraisal discrepancy often causes mortgage rejection so in order to avoid this make sure everything is documented correctly.

1. Don’t Make Rash Financial Decisions

Your financial behavior during a mortgage process does matter to the bank. You are being scrutinized and evaluated for your payback power. The bank wants a strong borrower for the long run and making large purchases around the same time you are applying for a mortgage can come off as irrational. A mortgage is a huge investment. Do not open new credit lines for a car, boat or credit card. You need to concentrate on the bank loan instead.

2. Stay Employed

Avoid leaving your job for another opportunity. Changing jobs reflects instability, along with a different income amount. The loan is typically called into question if job stability is not on the table.

3. Keep Your Accounts Steady

Only deposit and withdraw normal amounts from your checking and savings accounts. Do not move large money amounts between accounts. The bank wants your money habits to be steady to pay the mortgage consistently.

4. Don't Surprise Them

Report all of your income sources to the bank when you apply for the loan. Any unusually large deposits into your account shows that you were untruthful on your application, leading to a denial.

5. Curb Your Spending

Banks also look at your credit card use during the approval process. Use your credit cards normally or not at all, depending on your past habits. Avoid a spending spree on the cards. Accruing more debt affects your loan eligibility and may flag it as a rejection.

6. Be Responsible

Pay your other bills, including electricity and student loans, diligently during the approval process. Your consistent, on-time payments to other lenders shows the bank that you will do the same for them. If you’re still in the early stages of preparing to buy a home, make sure you are keeping your credit score intact before your mortgage application.

A home loan is a commitment you must keep for a decade or more. Prove to the bank that you are a trusted debtor by avoiding common pitfalls during the approval process. Only purchase necessary items and report all debts and income to the bank on the initial application. When you remain honest with the lender, they have good reason to offer you a loan.