Why Getting Pre-Approved Isn’t the Finish Line

Getting pre-approved for a mortgage can feel like a huge win—and it is. But as Zack Jones explains on zackjonesmortgage.com, it's only the beginning of the homebuying journey.

"I see it all the time," says Zack. "Buyers get pre-approved, then something shifts in their finances or paperwork, and the whole deal hits a wall."

To help you avoid that outcome, here are the four most common hurdles buyers are facing in 2025—and what you can do to stay ahead of them.

1. Debt-to-Income Ratio (DTI)

This was the number one reason for mortgage denials last year, and it continues to be a challenge in 2025.

DTI is the percentage of your monthly income that goes toward debt payments. If that number is too high, lenders may see you as too risky—even if you have a decent income.

With home prices still elevated, many buyers are stretching their budgets, which can tip the scale.

Zack’s advice: "If possible, pay down credit cards, auto loans, or any other high-interest debt before applying. A lower DTI not only improves your approval odds but could also help you qualify for better terms."

2. Credit Score Issues

A low credit score doesn’t automatically mean denial—but it can create friction.

Even if you meet the minimum score requirement, your overall credit profile still matters. High balances, recent late payments, or too many recent credit inquiries can raise red flags.

Tips to stay on track:

• Keep credit card balances under 30% of your limit

• Don’t open or close accounts during the loan process

• Avoid any missed or late payments, especially in the months before applying

3. Insufficient Funds

You’ll need more than just a down payment to close on a home.

Buyers often underestimate closing costs and reserve requirements. Lenders want to see that you not only have the funds to close but that you’ll still have a financial cushion afterward.

Zack’s strategy: "Start saving early, even if it’s small amounts each month. Automated savings can help build your reserves without a second thought."

4. Employment or Financial Changes Mid-Process

This is one of the most surprising (and avoidable) deal-breakers.

Switching jobs, changing income structures, financing a car, or co-signing a loan can throw off your loan approval completely—even after pre-approval.

Pro tip from Zack: "Before making any financial moves while under contract, talk to your loan officer first. Even small changes can create big problems."

Stay Prepared, Stay Approved

The bottom line? Mortgage approval is a moving target. Lenders are looking at your full financial picture—not just one score or one document.

Zack Jones works closely with his clients throughout the process to keep things on track. "My goal is to make sure there are no surprises when you find the home you love," he says.

If you're thinking about buying in 2025, take these steps early and work with a loan officer who can guide you through the hurdles.

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