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Top Do’s and Don’ts to Protect Your Mortgage Pre-Approval: Expert Tips for Homebuyers

Protecting your mortgage pre-approval is essential for a smooth home-buying process. This guide covers the top do’s and don’ts to keep your pre-approval intact, from maintaining a strong credit score to avoiding major financial changes. Follow these expert home-buying tips to safeguard your loan approval and move confidently toward securing your dream home.

Following these tips could be your key to a great home loan with low rates and fees.

Do stay current on existing accounts One 30-day late notice can compromise your ability to be approved.

Do continue to use your credit as normal Changing your pattern will raise a red flag and can lower your credit score.

Do call your mortgage loan professional first If you have any questions or concerns, always contact your mortgage professional.

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Don’t apply for new credit Every time you have your credit pulled by a potential creditor or lender; you will lose points from your credit score. This includes co-signing for a loan or applying for new credit.

Don’t max out credit cards Do not use more than 30% of your available credit limit during the loan process. If you pay down balances, do it across the board.

Don’t consolidate your debt When you consolidate all your debt onto one or two credit cards, it will appear that you are “maxed out” on that card, and your credit scores will suffer.

Don’t close credit card accounts Closing a credit card account negatively impacts your credit history.

Don’t payoff collections or “charge-offs” If you want to pay them off, do it through escrow at closing.

Don’t transfer money between accounts Unless receiving complete documentation from your bank itemizing all transfers, don’t transfer money.

Don’t withdraw or deposit large sums of money Unless absolutely necessary, don’t withdraw or deposit large sums into your checking or savings accounts.

Don’t make career moves Don’t change jobs while obtaining mortgage financing. Should an opportunity arise, discuss the details with your mortgage professional.

Don’t let bank accounts go in the red Any accounts with insufficient funds cannot be used. Be sure to keep all accounts in good standing.

Don’t have a friend or relative pay for anything related to the purchase of the home
Gifts are only allowed under specific lending guidelines and must be documented. This includes your appraisal, earnest money, down payment, etc.

Don’t keep your cash in a safe or overseas account If you plan to use these funds as a down payment, inquire about how and when the best time would be to put funds into your U.S. bank account if needed.

Don’t give your personal information to anyone else who might run your credit report
Be protective of your credit while purchasing or refinancing your home. Additional credit inquiries will hurt your credit scores.

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