When you are shopping for a home and working with a mortgage company to obtain a pre-approval, there is normally a lot of time and effort in being diligent during this process and getting you a solid pre-approval. However, there are some things you can to hinder this pre-approval and in this article we are going to discuss how to Avoid Losing Pre-Approval. There is no need to come all this way only to go back to square one because of some simple mistakes that could have easily been avoided.
One of the easiest way to affect your pre-approval and what you need to do in order to Avoid Losing Pre-Approval is to watch and be careful on what you are buying. If you have been issued a pre-approval, then you need to keep the large purchases to a minimum as underwriters will definitely question amounts that are greater than $500. Yes, it might be exciting to go purchase some new furniture or appliances, but in order to Avoid Losing Pre-Approval it is wise not to jeopardize your pre-approval. Also, putting items on credit cards is a big thing NOT to do. If you spend a lot on your credit cards, it could affect your credit utilization which could drive your FICO credit score down which would leave you in trouble. There is nothing worse than doing things that you can avoid.
Another rather easy transaction that you need to do to Avoid Losing Pre-Approval is to NOT get new credit and new loans after the pre-approval has been issued. Under most circumstances your loan officer should instruct you to NOT apply for new credit cards or loans. If there is ever a time to have patience for a few months, it is during this process. By holding off during this time you can Avoid Losing Pre-Approval. By taking on a new loan you can drastically affect your debt to income ratios and your pre-approval can be rescinded and you will have to start all over again.
When you know what an underwriter is going to be looking for in terms of verifying deposits and bank statement amounts, avoiding cash is a must so you can Avoid Losing Pre-Approval. When you are making large deposits into your bank accounts, it is a lot easier for you to deposit checks since they are easy to source and prove where they come from. However, if you deposit cash and an underwriter questions it, you are going to have to provide details on where it came from down to the penny. If you don’t want to go through the hassle of sourcing every cash deposit, it is safe to take deposits by checks or electronic payments only. Doing this can ensure you Avoid Losing Pre-Approval.
As you can see, there are a few was to go about making sure you Avoid Losing Pre-Approval. The last thing you want to have happen is to lose your pre-approval and be stuck wondering if you will be able to purchase a home. A lot of these actions are self-inflicted so knowing how to avoid them is key. If you need advice on this topic, please feel free to reach out to me anytime at 888-900-1020, email me at firstname.lastname@example.org, or visit www.loanconsultants.org.