4 things to avoid if you are prequalified for a home loan

When purchasing a home, your mortgage prequalification is based on your current financial situation. In the period between being prequalified and closing on your home loan, you don’t want your financial situation to change much. Luckily, many of the factors that impact your financial situation are entirely within your control.

Here are four things you’ll want to avoid doing while you’re in the process of purchasing a new home:

1. Taking on more debt. Your prequalification is based on several factors, including your current debt level. Avoid opening any new credit accounts, requesting a credit line increase, or co-signing on a loan. As a general rule, you’ll want to avoid taking on any new debt, but especially large debt, while you’re in the process of buying a home.
2. Changing your job. Sometimes job changes are inevitable, but when you’re preparing to purchase a home, it’s important to consider the impact any change may have. Your employment status and the size of your paycheck are two of the factors your pre-approval is based on.
3. Making a big purchase. Check with your lender before making any big purchase, either with credit or with cash. Wait to purchase furniture, appliances, and other big-ticket items until after you have closed on your new home.
4. Making late payments. Stay up to date on all of your credit obligations and utility payments. Now is not the time to pay a bill late or overdraft your checking account.

Now that you know what not to do, here are two things to make sure you are doing:

1. Respond in a timely manner to all requests from us.
2. Document any deposits other than your paycheck into your bank accounts.

If you have questions about the mortgage process, don’t hesitate to reach out. We want to make sure you understand everything that happens during the mortgage application process and beyond.

Navigating the home-buying process can often feel like trying to find your way through a maze without a map. Partnering with a knowledgeable mortgage expert not only simplifies this complex journey but also ensures that each decision is informed and strategic. We’re committed to turning the task of securing the right mortgage into a streamlined, transparent, and even enjoyable experience.