Pre-Approval Preservation Best Practices
Follow these 10 Commandments to preserve your Pre-Approval throughout the entire process:
- Thou shalt not change jobs, become self-employed or quit your job.
- Thou shalt not buy a car, truck or van
- Thou shalt not charge up your credit cards or make late payments.
- Thou shalt not spend money you have set aside for closing.
- Thou shalt not omit debts or liabilities from your loan application.
- Thou shalt not buy furniture.
- Thou shalt not allow anyone other than your Lender to run your credit.
- Thou shalt not receive Gift Funds or make large deposits without first checking with your loan officer.
- Thou shalt not change bank accounts.
- Thou shalt not co-sign a loan for anyone.
What to do if Something Changes
If any of these commandments are broken, either intentionally or unintentionally, your previous Pre-Approval may no longer be valid.
It is not unusual for the Lender to re-run and update your credit report before the final step of the Home Buying Process.
If there are any changes, like maxed out credit cards, late payments, or new credit, you may lose your Mortgage Approval and possibly even any good faith deposit or inspection fees you’ve spent during the process.
In the rare event that there are changes in your financial, employment or credit profile happen after your initial Pre-Approval, contact your Lender immediately and inform them of the change. Your Lender will make the changes and update your Pre-Approval.
Always disclose changes, positive or negative, to your Loan Officer and ask questions if you are unsure about whether or not something will affect your Pre-Approval.