Once you’ve received a Pre-Approval from your lender, it is vitally important that Nothing Changes in terms of your income, assets or credit that would cause a change in your approval status. If you make any financial decisions, be sure they will help to improve your overall financial health and not hurt it.
ON THIS PAGE
Best Practices for Pre-Approval Preservation
Follow these 10 Best Practices to preserve your Pre-Approval throughout the entire process. These are the Do’s and Don’ts of the process. If you need to update your pre-approval or receive a Hard Approval during the home shopping process, please don’t hesitate to give us a call; we are here to help.
- Do not change jobs, become self-employed or quit your job.
- Do not buy or co-sign for an automobile, personal or business.
- Dot not charge up your credit cards or make late payments.
- Do not spend money you have set aside for closing.
- Do not omit debts or liabilities from your loan application.
- Do not buy furniture.
- Do not allow anyone other than your Lender to run your credit.
- Do not receive Gift Funds or make large deposits without first checking with your loan officer.
- Do not change bank accounts.
- Do not co-sign a loan for anyone.
What to do if Something Changes
If any of these best practices are broken, either intentionally or unintentionally, your previous Pre-Approval may no longer be valid. It is not unusual for the Lender to re-run and update your credit report before the final step of the Home Buying Process.
If there are any changes, like maxed out credit cards, late payments, or new credit, you may lose your Mortgage Approval and possibly even any good faith deposit or inspection fees you’ve spent during the process.
In the rare event that there are changes in your financial, employment or credit profile happen after your initial Pre-Approval, contact your Lender immediately and inform them of the change. Your Lender will make the changes and update your Pre-Approval.
Always disclose changes, positive or negative, to your Loan Officer and ask questions if you are unsure about whether or not something will affect your Pre-Approval.
Get Pre-Approved Now
Get started with the Pre-Approval process by completing the short form that best describes your goals.