Avoid These Common Loan Mistakes When Buying a Home in Hudson or the Twin Cities

Purchasing a home in Hudson, WI or the Twin Cities is an exciting milestone—but it can also feel overwhelming, especially when it comes to securing a mortgage. One misstep during the loan process can delay your closing, cost you money, or even derail your dream of homeownership.

As a local real estate professional, I’ve seen it all. Here are the most common mortgage mistakes buyers make—and how to avoid them.

Changing Jobs Mid-Loan Process

Thinking of taking a new job before closing on your home? Press pause.

Lenders want stability. Even a short employment gap or job change can raise red flags and complicate your loan approval—even if the new job pays more.

Why it matters:

• Lenders verify employment multiple times before closing.

• A job switch can delay or jeopardize your loan entirely.

Tip:
Hold off on any career moves until you’ve signed the final paperwork and have keys in hand.

Making Big Purchases

It’s tempting to start furniture shopping or even upgrade your car—but big purchases before closing can hurt your debt-to-income ratio and raise red flags for lenders.

Why it matters:

• Large purchases increase your debt, which impacts loan eligibility.

• It could change your loan terms—or cause a denial.

Tip:
Wait until after you close before buying that new sectional or washer/dryer set.

Not Shopping Around for the Best Loan

Don’t settle for the first mortgage offer you get. Rates and fees can vary widely between lenders.

Why it matters:

• Even a small difference in your interest rate can save (or cost) you thousands.

• Some lenders may offer better programs for first-time buyers or veterans.

Tip:
Talk to 2–3 lenders. Ask about rates, closing costs, points, and prepayment penalties. It’s worth the extra effort.

Ignoring Your Credit Score

Your credit score has a major impact on your mortgage approval and interest rate.

Why it matters:

• A lower score can mean a higher rate—or rejection.

• Small errors on your credit report can hurt your score unnecessarily.

Tip:

• Check your credit early—well before applying.

• Dispute errors, pay down debt, and avoid opening new lines of credit during the process.

Lack of Communication with Your Lender

If your lender asks for a document, don’t wait days to respond. Communication is key to keeping your loan on track.

Why it matters:

• Delays can slow the process or even push your closing date.

• Lenders may need clarification or updated info during underwriting.

Tip:
Be prompt and proactive. Keep your paperwork organized and respond quickly to requests.

Skipping the Pre-Approval Step

Looking at homes without knowing what you can afford is like going shopping without your wallet.

Why it matters:

• Pre-approval tells sellers you’re serious—and ready to buy.

• It helps you set a realistic budget and makes your offer stronger.

Tip:
Get pre-approved before you start touring homes in Hudson or browsing homes for sale in the Twin Cities. It saves time and boosts your buying power.

Underestimating the Total Cost of Homeownership

Your down payment is just one part of the puzzle.

Other costs to consider:

• Closing costs

• Property taxes

• Homeowners insurance

• Maintenance and repairs

• HOA dues (if applicable)

Tip:
Work with your lender and agent to calculate the full monthly cost of homeownership—not just the mortgage.

Skipping or Rushing the Home Inspection

The home might look perfect, but what’s hiding under the surface?

Why it matters:

• Inspections catch issues like faulty wiring, foundation cracks, or plumbing problems.

• Unseen repairs can cost thousands after closing.

Tip:
Always get a professional inspection—and review the report carefully. You may be able to negotiate repairs or credits before finalizing the deal.

Partner with Local Experts Who Know the Market

At The Johnson Group, we’ve helped hundreds of buyers successfully navigate the loan process and find the right homes in Hudson, WI and throughout the Twin Cities metro.

Whether you're buying your first home or upgrading to your forever home, our team is here to help you avoid costly mistakes and move forward with confidence.

Ready to make a move in Hudson or the surrounding area?
Let’s talk! Contact The Johnson Group at Coldwell Banker Realty today to start your journey.

📞 Call us today at 651-333-7656
🌐 Or visit www.johnsonhomegroup.com
📍 Serving Hudson, WI and the greater Twin Cities metro area

Written by Mark Johnson, REALTOR® and owner of The Johnson Group at Coldwell Banker Realty. With over 20 years of experience helping clients across Hudson, WI and the Twin Cities, Mark is passionate about delivering expert real estate guidance with a personal touch.