When you're ready to buy a home, getting pre-approved is a huge first step. But in 2025, many buyers are learning the hard way that pre-approval doesn’t guarantee final approval. According to Kellyn Bowden, a seasoned loan officer at kellynithomeloans.com/home, "understanding what could derail your mortgage early on gives you the power to avoid costly setbacks later."

Let’s break down the most common mortgage hurdles today—and how to sidestep them like a pro.

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

The most common reason mortgage applications get denied? Too much debt. In 2024, DTI issues topped the list of lender concerns, and the trend continues into 2025.

Your DTI compares how much you owe each month to how much you earn. If you're carrying high credit card balances, car loans, or student debt, it can make lenders nervous about your ability to handle a mortgage.

How to avoid it: Start paying down your credit cards and avoid taking on new debt before applying. According to Kellyn Bowden, even small reductions in monthly obligations can improve your approval odds.

2. Credit Score Concerns

Credit scores aren’t just about approval—they also affect your loan options and costs. While you might meet the minimum requirement, a lower credit profile could still make the process harder or more expensive.

How to avoid it: Keep your credit card balances under 30% of your limit, pay every bill on time, and avoid opening or closing credit accounts while your mortgage is in process. As Kellyn Bowden notes on kellynithomeloans.com/home, "a little credit discipline can make a big difference in the long run."

3. Not Enough Funds for Closing

A common misconception is that you only need enough money for the down payment. But in reality, you'll also need to cover closing costs, escrow fees, and possibly show reserves—funds left over after everything's paid.

How to avoid it: Build your savings early. Set up a dedicated homebuying fund and make consistent deposits, even if they’re small. Lenders want to see that you're financially stable and prepared.

4. Financial Changes During the Process

This one surprises a lot of buyers: Changing jobs, taking on new debt, or even co-signing for someone else while under contract can derail your mortgage.

How to avoid it: Don’t make any major financial moves during the loan process without checking with your lender first. According to Kellyn Bowden, "your financial picture needs to stay consistent from pre-approval to closing day."

Final Thought: Pre-Approval Is Just the Beginning

Getting pre-approved is exciting, but it’s only the start of your mortgage journey. Staying financially steady and communicating with your loan officer can make all the difference.

"My role is to guide buyers through these pitfalls so they’re not blindsided when they find the home they love," says Kellyn Bowden. If you stay informed and proactive, you’ll be in a stronger position to close smoothly and confidently.

Sources:
Realtor.com, CNBC.com, NAR.realtor, FreddieMac.com