Most people assume a mortgage gets denied because they can’t afford the house. In reality, affordability is rarely the issue. The majority of mortgage denials happen because of a handful of technical problems that buyers don’t learn about until it’s too late.

After more than twenty years in mortgage lending, I’ve seen the same issues derail otherwise solid buyers over and over again. The good news is that most mortgage problems are fixable when they’re identified early.

Below are the seven most common mortgage problems that stop buyers from getting approved, along with what actually solves them.

1. Credit Score Isn’t the Real Problem

A credit score by itself does not determine mortgage approval. Lenders evaluate your entire credit profile, including credit card balances, utilization ratios, recent credit activity, and payment history.

Two borrowers can have the same credit score and receive completely different outcomes. High balances relative to limits, recent new accounts, or poorly structured credit can hurt approval even when the score looks acceptable.

The solution is not always waiting for time to pass. Strategic balance adjustments, restructuring accounts, or correcting reporting issues often makes the difference.

2. Income Looks Good but Doesn’t Qualify

Many borrowers earn strong income but struggle to qualify because of how mortgage guidelines calculate it. This is especially common for self-employed buyers and business owners.

Tax write-offs, depreciation, fluctuating income, or commission structures can significantly reduce qualifying income on paper. That does not mean homeownership is out of reach. It often means the loan program or documentation approach needs to change.

Understanding how income is reviewed before applying is critical.

3. Debt-to-Income Ratio Is Too High

Debt-to-income ratio, or DTI, measures monthly obligations compared to gross income. It is one of the most common silent approval killers.

Student loans, auto loans, leases, and credit card minimum payments are all calculated using specific rules. Even borrowers who pay more than the minimum each month are still qualified using the required minimum payment.

In many cases, small adjustments or timing changes can dramatically improve DTI.

4. Job Changes or Employment Gaps

Changing jobs does not automatically disqualify a mortgage application. What matters is consistency in the line of work, how income is paid, and how long it can be documented.

Employment gaps, commission income, bonuses, and overtime can often be approved when structured properly. Problems arise when income changes happen without guidance before applying.

Planning job transitions with mortgage rules in mind prevents unnecessary denials.

5. Down Payment Myths

Many buyers believe the down payment is the biggest obstacle to homeownership. In reality, qualifying often depends more on how funds are sourced than how much is put down.

Low down payment options exist, but lenders must verify where the money came from and ensure adequate reserves remain after closing. Improperly sourced funds can delay or derail approval late in the process.

6. Bank Account Red Flags

Large deposits, cash activity, payment apps, and digital assets can all raise questions during underwriting. These are not automatic deal breakers, but they must be documented correctly.

Problems often arise when borrowers move money around after applying without guidance. This creates unnecessary conditions and delays.

Keeping finances stable during the mortgage process is essential.

7. Bad Advice Too Late

One of the most expensive mistakes buyers make is relying on quick pre-approvals or online pre-qualifications. These are not true approvals and often fail once underwriting begins.

Real mortgage approval requires reviewing income, assets, credit, and documentation thoroughly before going under contract. Most denials happen mid-transaction, not at application, when options are limited.

Getting accurate guidance early changes everything.

Final Thoughts

Most mortgage denials do not require miracles to fix. They require understanding the rules, identifying problems early, and building a clear plan before making offers.

When buyers know where the risks are, the mortgage process becomes predictable instead of stressful.

If you are planning to buy, recently denied, or unsure where you stand, learning how mortgage underwriting actually works can save time, money, and frustration.