Your words can either build trust or create red flags in the eyes of your mortgage broker/lender. While many common missteps have been covered elsewhere, here are 12 examples of phrases you really should avoid when applying for a mortgage—and what they might signal to your broker/lender.
1. “I’ve already been pre-approved by another lender—so if you can’t beat their offer, I’m moving on.”
This immediately sets up a competitive or transactional tone, suggesting you’re shopping around solely for the best deal rather than looking for a long-term relationship. It can signal a lack of commitment and may make your broker less inclined to invest time in your application.
2. “I’d rather not dive into the details of my income right now.”
Transparency is crucial. Brokers and lenders need a full picture of your financial stability. Hesitance or refusal to disclose income details can raise concerns about your financial management or even hide irregularities.
3. “I don’t really care about interest rates or closing costs—as long as I can get into a house.”
Downplaying the importance of critical loan components shows a lack of understanding about the long-term costs of borrowing. Mortgage terms are a significant part of your financial future, and appearing indifferent might lead the broker /lender to question your commitment to financial planning.
4. “I’m only applying to see what kind of deal I can get; I’m not really serious about buying right away.”
Lenders and brokers alike favor committed buyers. This statement suggests you’re testing the waters rather than making a genuine effort to secure a home, which can cast doubt on your reliability as a borrower.
If you want to know about current interest rates, you can check Ratehub instead of contacting a broker/lender. Don’t waste people’s time.
5. “I plan to flip this house as soon as I buy it, so I don’t need a long-term mortgage.”
While flipping houses is a legitimate investment strategy, mortgage products for primary residences are built around stability. Mentioning a quick turnaround can indicate a speculative mindset, making lenders wary of potential risks or default if plans don’t work out.
6. “I might be taking a break from work soon, so my income might change.”
Job stability is a cornerstone of mortgage lending. Admitting that your employment situation could change shortly undermines your ability to reliably make mortgage payments and may lead lenders to deem your application too risky.
7. “I expect to refinance soon anyway, so the current terms aren’t a big deal.”
This comment suggests a short-term view of mortgages, implying that you haven’t fully considered the long-term financial commitment. Lenders want to see that you’re planning ahead and understand that refinancing isn’t always guaranteed or beneficial.
8. “I don’t have much in savings, but I’m sure I can manage the mortgage payments.”
Reserves and savings act as a safety net for unexpected expenses. A lack of savings can be a red flag to lenders, who might worry about your ability to weather financial storms, making them less likely to offer you favorable terms.
9. “I’ve dabbled in some risky investments in the past—but I always bounced back, so this mortgage should be fine.”
Highlighting a history of risky financial behavior can make lenders question your overall financial judgment. Even if you recovered in the past, it may still indicate a pattern of instability that could affect your long-term reliability.
10. “I’m relying on a potential windfall that might never come, so consider this just an experiment.”
Depending on uncertain or speculative income sources is a red flag. Lenders need to see a stable, predictable financial foundation before they commit to a long-term loan. This statement suggests you might be overestimating your ability to meet payment obligations.
11. “I’m planning on tapping into my retirement savings if I ever fall behind on payments.”
This comment implies that you’re relying on a financial safety net that isn’t intended for regular living expenses. Lenders prefer to see a solid, sustainable income stream rather than a plan that could jeopardize your long-term financial security. It may raise concerns about your budgeting skills and overall financial management.
12. “I’m only interested in a mortgage if I can have all the fees waived.”
While it’s natural to want to minimize costs, insisting on waiving standard fees can come off as unrealistic or overly demanding. This might signal to your broker that you’re not fully familiar with how the mortgage process works, and that you could be uncooperative or difficult to work with during negotiations.
Lenders expect borrowers to understand that fees are part of the package—and that a balanced, transparent conversation is key to a smooth process.
Final Word
By steering clear of these types of remarks, you present yourself as a well-prepared and financially responsible applicant, which helps build trust and sets the stage for a more productive relationship with your mortgage broker/lender.
The Money Savvy Blog 