Four Ways To Ruin Your Pre-Approval

 In Featured, Real Estate Articles

If you’ve already qualified for a mortgage and you’ve been handed your pre-approval, you might think that you’re in the clear. All is well and you’re going to find yourself that house no matter what. The bank has already made that agreement with you, right? Not exactly.

A pre-approval letter means that you have made it through the approval process, but it does not guarantee that you’re going to be given your mortgage loan. There are several things that you can do to ruin your pre-approval. Let’s explore them carefully so that you know what to avoid.

Don’t Fall Behind on Bills

Since we’ve covered that your pre-approval is not a promise issued by the bank, it’s important that you stay up to date on all your bills, so that your loan officer doesn’t find a reason that you no longer qualify. Being late on your bills or allowing them to go to collections is not a wise decision to make when you’re in the process of finding a home. Financing is not set in stone until all the paperwork is signed and you’ve bought a house.

Don’t Open New Credit Lines

Your credit report and your score are a big part of your qualifying factors that granted you the pre-approval letter in the first place. Changing anything on your credit report by opening a new line of credit while you’re shopping for a home could have disastrous consequences. Do everything in your power to keep your credit just the way it is, unless you’re paying off a bill on the report. You’re allowed to improve your score in this way, but don’t attempt anything that will change your score negatively.

Don’t Change Jobs

This should go without saying, but changing from one job to another or quitting should be avoided when you’re in the process of buying a new home. Your pre-approval letter was issued under the conditions you applied with, and your job is a condition of that agreement. However, if you’ve been offered a promotion or another opportunity that rewards you with a higher wage, talk to your mortgage consultant or loan officer as soon as you can to determine your best course of action.

Don’t Make Any Big Purchases (Yet)

It’s easy to see why someone who is buying a new home might get excited about it and want to invest in some new furniture. It’s understandable to have a vision for how you want your new home to look, but give it time. Don’t make any major purchases until after you’ve already bought the house. Not only will this give you more time to plan out your living space, it will not interfere with your mortgage application once all is said and done. Save that extra furniture money until you need it.

The homebuying process can be stressful, but if you do your best to keep your finances on course, you should be in your new home in no time. For more on what to do and what not to do during preapproval, Mortgage Lenders of America has a useful article here.

Let my team at Keystone Realtors® meet all your real estate needs. I have over 16 years of experience in buying and selling in the Santa Clara and San Mateo County areas, specializing in the high-end, luxury market. Visit our website at for listings and information. You can contact me at 650-924-2544, or email at [email protected].