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DOs and DON’Ts after pre-approval

DOs and DON’Ts after pre-approval

So, you were just approved for a mortgage loan, and you’re wondering what’s next. Maybe you haven’t found the perfect house, just started looking, and have some time before you put in an offer. Your pre-approval is based on an evaluation of your credit, income, debt, and assets. If any of these things significantly change before your final approval, your pre-approval may no longer be accurate. Here are some tips to ensure that you will be well on your way to purchasing a home when you find the one you want.


  • Don’t apply for new credit
    Applying for a new line of credit can impact your credit score and accruing more debt will affect your debt-to-income ratio, a key factor when applying for a mortgage.
  • Don’t miss payments
    Payment history is the largest factor in determining your credit score, which is why making timely payments is so critical. Make sure you have a system in place to avoid late payments at all costs.
  • Create a paper or digital system to keep track of monthly bills
  • Set alerts for due dates,
  • Automate bill payments from your bank
  • Don’t make any large purchases
    Now is not the time to start purchasing things for your new home. If you make big purchases and pay in cash, it will decrease your savings, and if you charge them, it will increase your DTI. Both outcomes could negate your original pre-approval offer and your ability to buy a home.
  • Don’t switch jobs
    Employment history is a major component of your mortgage application approval. While it’s understandable that some job changes are out of your control, try not to switch jobs while you are in the process of buying a home. Changing careers could result in an income revision and alter the amount you were approved to borrow.
  • Don’t make large deposits without a paper trail
    All money that goes into your bank account needs to be documented with the appropriate paperwork. A loan underwriter will need to be able to trace a deposit, typically over $1000, to its origin.


  • Work with a real estate agent
    Once you have your pre-approval and know the amount you qualify for, you can start looking at houses in your budget. Working with a real estate agent that is knowledgeable in the market you are looking in can be a great benefit.
  • Stay in touch with your loan officer
    Keep the lines of communication open with your loan officer so you can take immediate action when you do find the home you want. Your loan officer is always ready to talk you through every step of the home buying process and answer any questions that might come up.
  • Increase your savings
    If you’re able, use the time between pre-approval and buying to increase your savings. The peace of mind that comes with having a slight cushion in your savings can make your home buying journey that much easier. Not having to worry about unexpected expenses after purchasing your home, or simply having more flexibility with your down payment, is a game changer.
  • Ask questions
    There is no wrong question when you are buying a home. Ask every question that comes up, so you feel comfortable with the decision you make. This is one of the biggest moments in your life and we want you to be fully confident that you are well informed and making the best move you can.

Categories: helpful tips