Avoid These Common Mortgage Pitfalls in 2025

Getting pre-approved for a mortgage is a major milestone, but it’s not a guarantee. In today’s market, several common hurdles are causing buyers to stumble before they reach the closing table.

According to Andrew Harkins, a mortgage expert at harkinslendingteam.com/home, "2025 has brought its own challenges, but with the right prep, buyers can avoid most of the issues that lead to mortgage denials."

1. High Debt-to-Income Ratio (DTI)

DTI continues to be the number one reason for mortgage denials. With rising home prices and persistent consumer debt, many buyers find themselves overextended.

"Too much debt compared to income makes lenders nervous," says Andrew Harkins. "Paying down credit cards or car loans before applying can improve your chances of approval."

2. Credit Score Concerns

Even if you meet the minimum credit score, a weaker credit profile can still result in higher rates or fewer loan options.

Keep your balances low, avoid late payments, and don’t open new accounts while you’re in the mortgage process. "We coach clients on small credit moves that make a big difference," notes Andrew Harkins.

3. Insufficient Funds for Closing and Reserves

Beyond your down payment, lenders want to see that you have enough saved for closing costs and reserves.

"Start building savings early," advises Andrew Harkins. "Even small, regular deposits show financial responsibility and help you clear this hurdle."

4. Financial Changes Mid-Process

One of the most overlooked risks is making major financial changes after getting pre-approved. Job changes, new debts, or co-signing a loan can all derail your application.

"Pre-approval isn’t the finish line—it’s the starting line," says Andrew Harkins. "Keep everything steady until after closing to protect your mortgage."

The Bottom Line

Mortgage approval in 2025 is about preparation and stability. With the right guidance, you can avoid these pitfalls and move toward homeownership with confidence.

"My job is to guide buyers through the process the right way, so there are no surprises when they find the right home," explains Andrew Harkins on harkinslendingteam.com/home.

Sources: Experian.com, NAR.realtor, FreddieMac.com, Bankrate.com