Applying for a mortgage can feel like a maze. And in today’s market, even qualified buyers are running into unexpected issues that can delay—or even derail—their home purchase. According to Grant Edmondson of GrantEdmondsonMortgage.com, the key to avoiding problems is knowing where the roadblocks tend to show up and planning ahead.

Let’s walk through the most common mortgage approval hurdles buyers are facing in 2025—and how to avoid them.

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

This continues to be the leading reason mortgage applications are denied. Your debt-to-income ratio (DTI) is a simple calculation of your monthly debts compared to your monthly gross income. Lenders use it to determine how comfortably you can take on a mortgage payment.

“With rising home prices and inflation, it’s easy for buyers to become overextended,” says Grant Edmondson. “Even if you qualify on paper, a high DTI makes lenders nervous.”

How to avoid it:
Before applying, try to pay down high-interest debts like credit cards or car loans. Reducing even one monthly payment can improve your DTI and give you more purchasing power.

2. Credit Score Challenges

Credit is another critical factor. While you might meet the minimum score requirement, a weaker credit profile can lead to stricter terms, higher costs, or even a denial.

“Your credit behavior in the months leading up to your application matters,” Grant Edmondson explains on GrantEdmondsonMortgage.com. “Maxed-out cards, late payments, or new credit inquiries can all hurt your chances.”

How to avoid it:
Keep your credit card balances below 30% of your limits, avoid opening new accounts, and always pay bills on time. If you’re not sure where you stand, get a copy of your credit report and review it with a trusted loan officer.

3. Insufficient Cash to Close

Many buyers underestimate how much money they’ll need beyond the down payment. Closing costs, prepaid taxes, insurance, and cash reserves can add up quickly.

“Lenders want to see that you have funds not just for the purchase—but also for a financial cushion after closing,” says Grant Edmondson.

How to avoid it:
Start building your savings as early as possible. Even small, consistent deposits can grow into a solid reserve. And don’t forget to ask about programs that might help with down payment or closing cost assistance.

4. Financial Changes During the Process

One of the most surprising deal-breakers? Changes in your job, income, or credit while you’re under contract.

“Many buyers think once they’re pre-approved, they’re good to go,” Grant Edmondson notes. “But your mortgage isn’t final until the keys are in your hand.”

How to avoid it:
Avoid switching jobs, taking on new debt, or co-signing for someone else during the mortgage process. Always check with your loan officer before making major financial moves.

Final Thoughts: Stay Mortgage-Ready From Start to Finish

Buying a home is exciting—but it’s also a big financial commitment. The best way to ensure a smooth path to approval is to stay proactive, informed, and connected with a mortgage expert.

As Grant Edmondson says on GrantEdmondsonMortgage.com, “Getting pre-approved isn’t the finish line—it’s the starting line. My job is to help you avoid surprises so you can close with confidence.”

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