Buying a home means you’ll have to deal with a web of processes, legwork, and documentations. From doing real estate research to getting your finances in check, down to securing your loans—there’s no doubt that you’ll be on your toes. While getting your paperwork ready and finances in a good place can be pretty helpful, it’s also important to be responsible about your loans, especially after the pre-approval stage.
The home loan pre-approval stage is an important step since it makes your home purchase a done deal. However, when you make the wrong moves, it can turn into just another worthless paper. Seeing as there are a lot of interconnected tasks in buying a home, you must remain responsible even during pre-approval to ensure that your papers get signed, and you get the keys to your dream home.
For this reason, it’s a good idea to work with a mortgage company you can trust so you’ll be guided every step of the way. With their help, you’ll know what steps to avoid and what moves you should take to have a smooth home buying experience.
Different Home Loan Pre-Approval Mistakes to Avoid
Mistake #1: Quitting Your Job
When you quit your job, your mortgage process will stop. Whether you quit your job or lose it, it will have the same effect on your mortgage. This is because pre-approval will depend on an individual’s ability to pay. So if your lender sees that you don’t have a job or stream of income, it may be a red flag for your loan.
Mistake #2: Making Big Purchases
When you buy big items, such as appliances, furniture or plan an expensive vacation, it could really leave a sour note in your pre-approval papers. This is because if the mortgage company decides on checking your checking or savings account and finding a little cash, it may hurt your chances of getting approved.
Mistake #3: Getting More Credit
While great deals and sales can be tempting, it’s best to stay away from them for a while until you can safely say you can afford all of these on top of paying a monthly mortgage. With that said, avoid getting more credit because credit is debt, and if it continues to pile up, you may be dealing with bigger financial issues down the line, which could ultimately affect the pre-approval of your home loan.
Mistake #4: Mistake Credit Card and Loan Payments
Another red flag that your mortgage company will not like at all is finding out that you don’t pay your credit card bills and loans on time and in full. When they see this, it will most likely ruin your chances of securing a home loan since it will make them think that you’re not responsible for making payments and meeting deadlines. Because of this, make sure you learn how to pay your bills on time and in full to avoid such issues down the line.
The Bottom Line: Pre-Approvals Shouldn’t Be Ignored
Getting a home loan pre-approval puts you one step closer to securing a home. Because of this, it’s only right that your remain is responsible, especially during your pre-approval stage. This way, the mortgage company will know if they can trust you with a loan, allowing you to purchase a home with no issues.
How Can We Help You?
Getting advice when it comes to securing a mortgage pre-approval loan for your dream home is crucial; that’s why you should work with a mortgage company you can trust.
NetLending is a top wholesale mortgage broker in Honolulu, Hawaii, and Santa Ana, California. We help clients find the best mortgage fast with the best possible rates and loan terms. If you want to be one step closer to buying your dream home, reach out to us today!