Don't Make Large Purchases
Resist the Temptation
One of the most common mistakes is splurging on large purchases before closing on your new home. Whether it’s furniture for your future living room or a new car, spending significant amounts of money can affect your debt-to-income ratio, one of the critical factors lenders consider. A worse debt-to-income ratio can lead to a revoked pre-approval.
The Impact on Your Loan
Purchasing big-ticket items can also reduce your available cash for a down payment and closing costs, potentially affecting the terms of your loan or your ability to secure it at all.
Avoid Job Hopping
Stability is Key
Lenders look for stability in your employment history to ensure you have a reliable income to make your mortgage payments. Switching jobs, especially to a different field or for a lower salary, can be a red flag for lenders. If you must change jobs, ensure it is for a higher salary in the same field to maintain your loan’s security.
Communicate Changes
If a job change is unavoidable, communicate with your lender as soon as possible. They may require additional documentation or reassurance about your financial stability.
Don't Ignore Lender Requests
Prompt Responses Matter
After pre-approval, your lender might ask for additional documents or clarification on your financial situation. Ignoring these requests or delaying your response can slow down the process or, worse, imply that you have something to hide, which could jeopardize your loan approval.
Stay Engaged and Informed
Keep the lines of communication open with your lender. Prompt and complete responses can help ensure the process moves smoothly towards closing.
Safeguard Your Pre-approval
Securing a mortgage pre-approval is an exciting step, but it’s important to remember that it’s not a guarantee. Your financial behavior in the time between pre-approval and closing can impact your loan. By avoiding these common pitfalls, you can help ensure that you make it to the closing table without issue. Stay focused on your goal of homeownership, and let your pre-approval lead the way to a successful purchase.
Interested in finding out if you qualify to buy a home?
Dreaming of owning your own home but not sure if you qualify? We’re here to help you navigate the complex world of home buying with ease. Our team of experts is ready to guide you every step of the way, from understanding your financing options to finding your perfect home. Don’t let uncertainty hold you back. Click here to discover if you’re ready to take the leap into homeownership. Are you interested in finding out if you qualify to buy a home? Take the first step towards your dream home today!
