How Buyers Can Improve Their Chances of Mortgage Approval — A Guide for Utah Realtors

by Emma Romney

In today’s climate of rising interest rates and tighter underwriting standards, buyers face more challenges in securing mortgage approval than in past years. As a Realtor in Utah, you can stand out—and add value to your prospects—by coaching them on how to strengthen their application. When your buyers succeed, deals close more reliably, and your reputation grows. Use this as your go-to resource (and share it) with your buyer leads.

Why It Matters (Especially in Utah)

Higher interest rates reduce buyers’ purchasing power, so a weaker credit profile or margin misstep can mean failing to qualify.
Utah’s lenders and mortgage markets remain competitive. Shoppers who don’t optimize their financial profile may lose out to stronger offers.
As agents, the more guidance you provide around mortgage readiness, the fewer deals fall apart late in escrow.
Agents who become known for “mortgage-smart buyer clients” build more referrals and attract serious buyers and agents alike.

Key Factors Lenders Evaluate (and What Buyers Must Improve)

Here are the core variables underwriters assess — and how your buyer clients can take action:

Factor	What Lenders Look For	How Buyers Can Improve / Mitigate
Credit Score & Credit History	Clean, stable credit; no major derogatory marks	Dispute errors on credit reports. Pay down revolving debt. Avoid opening new lines or large credit inquiries just before applying.
Debt-to-Income Ratio (DTI)	Lenders generally prefer DTI (including mortgage) ≤ ~ 43% (or less)	Pay off or reduce existing debts (auto loans, credit cards). Delay large purchases. Increase your income if possible (consider side gigs or a second job).
Employment / Income Stability	2+ years in the same line of work or documented consistent income (for salaried or W-2 income)	If self-employed, build a comprehensive documentation package (including bank statements and tax returns). Avoid job changes too close to a mortgage application.
Down Payment & Cash Reserves	A larger down payment reduces lender risk; reserves demonstrate the ability to absorb shocks.	Encourage buyers to aggressively save, use gift funds (with proper documentation), or potentially restructure assets. In Utah, down payment and closing cost assistance programs are available via Utah Housing Corporation.
Documentation & Paper Trail	Lenders expect W-2s, tax returns, bank statements, asset statements, and proof of any additional income.	Help your buyers assemble a “loan-ready” packet early: 2 years of tax returns, recent pay stubs, 2–3 months of bank statements, a schedule of debts, and letters explaining atypical income.
Loan Program / Type Selection	FHA, VA, USDA, or conventional each have different thresholds and flexibilities	Work with lenders who can advise which loan program fits each buyer’s profile. Help them by matching their profile with the best programs (e.g., FHA for moderate credit, USDA for rural areas).
Shopping Among Lenders / Lock-In Strategy	Buyers who don’t shop around may accept suboptimal rates or unfavorable terms.	Encourage your buyer clients to get multiple quotes from reputable lenders (within a short window so that hard inquiries count as one). Leverage your network of mortgage professionals.
Avoid Negative Financial Moves Pre-Approval	Sudden late payments, new large purchases, new credit lines, or changes in job/income can derail underwriting.	Advise buyers: hold off on purchasing a car or financing furniture until after loan approval; don’t close old credit accounts just before; avoid large bank withdrawals.

Utah-Specific Tips & Programs to Boost Mortgage Approval Chances

Explore Utah Housing Corporation programs
The Utah Housing Corporation (UHC) offers resources, down payment assistance, and mortgage programs specifically designed for lower- to moderate-income buyers in Utah. As an agent, you can guide buyers toward UHC offerings early.
Leverage state and local down payment or closing cost assistance
Many counties or cities in Utah offer assistance funds or incentives. Buyers who qualify for aid may be better able to meet lender thresholds for reserves or down payments.
Educate your buyers on credit and readiness well in advance
In slower seasons, host buyer seminars or send “Mortgage Readiness Checklists” before they’re house-hunting. The more lead time buyers have to fix finances, the higher the success rate.
Use lender partners who specialize in Utah underwriting
Some out-of-state lenders may not be as familiar with Utah's markets or local property types. Having trusted in-state lender relationships increases your buyers’ chances of approval and streamlines the underwriting process.

How Agents Can Use This to Grow Their Business — And Attract Other Agents

Become the mortgage-smart agent in your market.
When you can clearly articulate how credit, DTI, reserves, and document quality affect approval, you elevate your brand. Buyers will seek you out earlier.
Offer “pre-qualification coaching” as part of your service
Before even showing homes, audit potential buyers’ financial readiness. Identify issues early and partner with mortgage experts to improve their profile.
Market this as a recruiting differentiator for your brokerage
If agents know your brokerage invests in educating buyer clients to boost mortgage success, you attract agents who care about reducing deals falling apart.
Create content around “mortgage readiness checklists” for your agents to use
Provide them with templated checklists, scripts, and buyer education emails. This empowers less experienced agents to deliver real value from day one.

Sample Buyer “Mortgage Readiness Checklist” (to share with clients)

Pull credit reports from Experian, TransUnion, Equifax; dispute inaccuracies
Pay down outstanding credit card balances (keep utilization < 30%)
Avoid opening or closing credit accounts
Reduce or eliminate consumer debt (auto, student, personal)
Hold off on major purchases (cars, appliances)
Bring in 2 years of tax returns, W-2s, 1099s
Collect recent pay stubs, bank statements, and asset statements
Maintain steady employment or income
Shop 3+ mortgage lenders within a short timeframe
Consider down payment assistance or Utah Housing programs
Get approval early, then house-hunt in your qualified range

Contact Me

If you’re a Utah Realtor (or soon-to-be agent) who wants to differentiate yourself by ensuring your buyer leads are mortgage-ready and closing more reliably, let’s chat. I offer guided coaching, proven systems, and support to help you build your pipeline, reduce failures, and grow faster. Reach out and we’ll strategize how to turn mortgage hurdles into a competitive advantage for your business.