One of the most critical steps to successfully purchase a home is to get approved for a mortgage before shopping for homes. The primary reason to get approved for a mortgage before shopping for houses is to ensure you're looking at homes within the price range you can afford.

However, rejection is still on the table even after you receive approval. Below you will read some of the typical reasons for a post-approval revocation of your mortgage. Knowing and accounting for them can significantly reduce the chance that your mortgage is denied even after approval.

1. Not meeting loan requirements and guidelines

The first and often most critical factor that triggers a revocation is not meeting the loan requirements, even though it may not always be your fault. Sometimes, lenders can unilaterally change guidelines. Furthermore, laws may change over time, given the dynamic nature of housing markets.

2. Change of employment and employment status

The second, and most important, is a change in employment status. Depending on the type of financing, specific guidelines exist for the necessary length of consistent employment. If there are any gaps in your employment history (i.e. periods of unemployment), the lender requires a written explanation. Consider consulting your mortgage consultant before making any employment decisions about the possible impact on a mortgage approval.

3. A Negative mark on your credit history

Another common reason a mortgage might be denied is because of a negative impact on your credit score. It's imperative to thoroughly understand how credit scores impact mortgage approval rates.