Once you apply for a mortgage loan and get the preapproval letter from your bank, you should realize that this approval can be cancelled by the lender that offered it. This is something you should know so that you can avoid doing certain things that may cause the lender to change their mind about giving you a loan. If you want a preapproval that is guaranteed, you should make sure you avoid doing the following things.
Switching jobs too often or after getting preapproved for a mortgage loan can be viewed as a red flag to mortgage lenders. After you are preapproved for a loan, you should not switch jobs until after you actually buy a house and close on the loan.
Lenders like to see consistency and stability in a borrower's job, and having the same job for many years demonstrates these things. If you switch jobs, the lender might worry that the job will not work out for you. If you lose this new job, you may not be able to repay your loan, and this could create major problems for the lender.
Buying Something Big
When you buy something big, you will either have to use up cash that you have on hand or take a loan for it, and lenders can view both of these situations with negativity. If you use up cash you have, you may not have enough for your down payment that was agreed upon. If you borrow money to buy something big, it could cause your debt-to-income ratio to increase too high. This ratio is vital when getting a loan, and having a high debt-to-income ratio is a great way to lose the loan you are approved for.
Failing To Make All Your Payments
The other thing you will need to avoid is having late payments show up on your credit report. Remember, your preapproval is based on many things, including your credit score. Late payments will result in a decrease in your credit score, and this could cause the lender to pull out. If you want to make sure your loan is guaranteed, you must continue to make all your payments on time so they are reflected positively on your credit report.
When you get preapproved, the lender may give you a list of conditions that apply, and it is likely to include a list of things to avoid. If you would like to learn more about home loans, contact a lender today.Share