Your Preapproved. Now What?

You have decided to purchase a home and have gotten pre-approved for a mortgage.  Now what?  Of course, you look for the perfect home within your budget, but what else.  Buyer beware, things that you do now could actually affect whether you get the final approval for your loan.   First off, do not apply for any new credit during this time period because this could affect your credit score rating, thus changing the possible interest rate you qualify for on the mortgage.  Do not make any large credit purchases, such as furniture or appliances, or cosign on any loans.  Any large purchases made with credit  or cosigning for someone could affect your debt-to-income ratio.  If you can avoid it at all, do not change jobs after applying for a mortgage loan, as employment and salary verification could delay the whole process.  Most importantly, do not ignore any lender requests.  If your mortgage lender recommends you to do something or requests information, you need to act quickly and get things done or returned to them as soon as possible. 

It also goes without saying that there are things you need to do in order to help the loan process along.  Do stay current on all of your existing accounts.  A preapproval is a snapshot of your finances at one particular time, and any deviation in that picture could delay the process.  If you receive any money other than the usual monthly deposits, keep a paper trail.  Whether it is a gift, an inheritance from a relative, or a bonus from work, make sure that you document everything and let your lender know.  And lastly, do let your lender know if you are asking for seller concessions, such as help with closing costs. All these things are  factored into the final loan approval.  So, have fun shopping for the perfect home, but keep in mind the do’s and don'ts so that loan approval doesn't disappear.