Finding your dream house can take some time, so once you're Pre-Approved for a mortgage, it's important to be consistent with your finances so that you don't impact your approval status.
- Don't use your credit cards past 30% of your available balance. It'll change your credit scores in a way you and your lender won't like. Sometimes, depending on how long it takes to find a house, your credit may have to be pulled again.
- No large deposits into your bank account that cannot be easily sourced. (Anything other than salary income.) Large deposits raise red flags and red flags need to be sourced. We aren't saying you can't deposit anything, guidelines for different loans are all different. So definitely check with your loan officer before making that deposit, because there may be a way to make it work so that there isn't frustration later in the process.
- Don't Change Jobs. Can that wait while you make one of the biggest investments of your life? Consistent income helps to strengthen the likelihood of you being pre-approved. If you need to make a job change, please let us know what is going on prior to your change so that we can figure out a game plan.
- Stop Buying Stuff - When your lender pulls your credit, we are taking into account all of what your income is, in order to calculate what you're approved for. If your liabilities increase, there is a chance your pre-approval status will decrease.
Always remember, we are on your side!
Believe it or not, we want to make sure your loan goes as smooth as possible. If you decide to change your financial circumstance after you get pre-approved for your home loan, just please understand there may be some leg work in putting the pieces back togethre.