Your mortgage is approved— now what? Let’s discuss it!
- Don’t apply for new credit: Your debt level and available credit are both factors in mortgage approval, so increasing them may risk your pre-approval.
- Don’t make any large purchases: Changes to your financial situation could ultimately result in loan rejection, even if you were initially pre-approved. To avoid rejection, don’t make any major purchases that change your debt service ratios.
- Don’t switch jobs: Avoid changes to your employment status after you’ve been pre-approved. Steady and predictable income is crucial to most mortgage applications.
- Don’t make any large deposits or withdrawals: Anything out of the ordinary, including large deposits or withdrawals, can raise a red flag.
- Don’t miss loan or credit card payments: A lender is looking for a reliable borrower that will be able to meet their monthly mortgage payments. Continuing to pay bills on time while pre-approved is one of the simplest ways to ensure the pre-approval is maintained.
A dramatic change in the borrower’s finances can cause the borrower to no longer qualify for the mortgage amount. When it comes to financing, it is best to wait to make any major employment or life changes until after the deal has gone through.