Mortgage Pre-Approval

It’s so incredibly exhilarating to get your mortgage pre-approval in hand for new home shopping! I love it when my clients are ready to go and willing to show sellers they are serious buyers by taking this step. Good for you!

Something people don’t typically think about, however, is their financial status after getting their pre-approval. I mean, you got approved, right? What else is there to think about?

The thing is, the lender approved your financial picture at that particular moment. If you start changing things up in a way that lenders don’t like, it could cause changes to your pre-approval and disrupt your home-buying process.

So, what kinds of mistakes should you avoid making after your mortgage pre-approval? 

While most of these are typically things you’d do anyway, a few may surprise you. Hold off on these lifestyle and financial changes while in the process of purchasing new real estate:

  • Applying for new credit or taking out a loan: This can affect your debt-to-income (DTI) ratio and stability.
  • Making a large purchase: This can affect your DTI and credit score.
  • Changing bank accounts: Lenders might question your financial stability.
  • Late bill payments: Ditto.  
  • Changing jobs or leaving your job: Your income might be affected, as might your ability to pay your mortgage.
  • Large cash deposits: It seems counterintuitive, but unexplained deposits might make a lender question if you’ve disclosed all your debts and/or question if you received those funds to pay down an undisclosed debt.
  • Opening or closing new credit lines: This can affect your credit score.
  • Maxing out your credit cards: Again, your ability to pay your mortgage might get questioned here, and typically, this will drag your credit score down, too.
  • Ignoring lender requests: Just don’t do this–if the lender asks you for something, I promise that the underwriter does want it!

The good news is that since you have your pre-approval walking in the door, you’ve set yourself up well for when you want to make an offer, particularly when the property is hot with many prospective buyers. Keep your ducks in a row (and your financials in order)  until your escrow closes, and you get your keys to your Home Sweet Home!

If you’re shopping in the Tampa market, It’s hot right now as usual, but I have the inside scoop on pocket listings and other gem properties you might not have considered. We are in prime real estate buying season, and I’d love to show you around whether you’re a local or new to the area. Call me today!