Getting Pre-Approved Isn’t the Finish Line

In 2025, more buyers are hitting unexpected roadblocks after getting pre-approved for a mortgage. That initial green light feels like a win—but as Josh Franklin explains on loanofficerjosh.com, pre-approval is just the beginning.

"My job isn’t just to help you get approved," says Josh. "It’s to make sure nothing derails the process once you do."

Here are the top four hurdles buyers are running into in 2025—and what you can do to avoid them.

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

This continues to be the leading reason mortgage applications get denied.

Your DTI is the percentage of your monthly income that goes toward debt payments. With high home prices and everyday costs, it’s easy to end up overextended.

Josh’s tip: "Paying down credit cards or car loans before applying can significantly improve your DTI. Even a few hundred dollars can make a big difference."

2. Credit Score Challenges

Even if you meet the minimum credit score requirements, lenders still evaluate your full credit profile. High balances, recent late payments, or too many new accounts can complicate your approval.

How to strengthen your credit:

• Keep balances under 30% of your credit limits

• Pay every bill on time

• Avoid opening or closing credit lines during the process

3. Insufficient Cash to Close

Many buyers prepare for the down payment but forget about closing costs and required reserves.

Lenders want to see that you have enough money not just to close the loan, but also to manage your mortgage afterward.

Josh’s advice: "Start saving early. Even small, regular deposits build up over time—and that cash can make or break your loan approval."

4. Financial Changes During the Loan Process

This is one of the most preventable issues—but it still catches buyers off guard.

Changing jobs, financing a car, or co-signing a loan while under contract can instantly disrupt your approval.

Josh’s warning: "If you're under contract, do not make any financial moves without checking with your loan officer. One misstep can stall or cancel your closing."

Stay Ahead of the Process

Mortgage approval isn’t just about checking a few boxes—it’s about maintaining stability throughout the process.

"It’s not just about getting pre-approved," says Josh Franklin. "It’s about staying approved all the way to the closing table."

With the right guidance, preparation, and communication, you can navigate these hurdles confidently.

Sources: HUD.gov, Experian.com, Realtor.com, NAR.realtor