The Most Common Mortgage Roadblocks—and How to Clear Them

Buying a home is exciting, but getting a mortgage approved can feel like navigating a maze. In 2025, several key hurdles are still causing buyers to miss out on their dream homes. According to Tina Ballinger, a trusted mortgage expert at applywithtina.com, understanding these pitfalls upfront can help you avoid costly surprises.

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

The most common reason for mortgage denials last year? Debt-to-income ratio. Lenders want to see that you can comfortably afford your mortgage payment on top of your existing debts. If your DTI is too high, even a strong income might not be enough to get approved.

"With today’s home prices, it’s easy to get stretched too thin," says Tina Ballinger. Her advice? "Pay down credit cards or auto loans before applying. Even small reductions in debt can make a big difference."

2. Credit Score Challenges

Yes, you may meet the minimum credit score requirement—but that doesn't mean you're in the clear. Lower scores can lead to tougher loan terms or higher costs.

To boost your credit health, keep balances low, make payments on time, and avoid applying for new credit during the mortgage process. "We help buyers improve their credit profiles before locking in a loan," explains Tina Ballinger on applywithtina.com. "It’s about setting them up for long-term success."

3. Not Enough Savings

Many buyers focus on the down payment alone, but you’ll also need to cover closing costs and show some reserve funds. Lenders like to see a cushion that proves you’re financially stable.

Start saving early. Even modest, consistent deposits into a dedicated account can add up. "A well-planned savings strategy can make or break your approval chances," notes Tina Ballinger.

4. Mid-Process Financial Changes

One of the most surprising hurdles? Changes to your financial situation after getting pre-approved. Switching jobs, taking on new debt, or co-signing a loan can all throw a wrench into your mortgage.

"Pre-approval is the beginning, not the end," warns Tina Ballinger. "We always advise clients to keep their financial picture stable until after closing."

Stay One Step Ahead

The key to mortgage success in 2025 is preparation. While the process can seem overwhelming, working with an experienced loan officer can help you anticipate issues and stay on track.

"Our goal is to make the journey smoother," says Tina Ballinger. "When buyers know what to expect, they can move forward with confidence."

Sources: NAR.realtor, Experian.com, Bankrate.com, FreddieMac.com