When buying a home, getting pre-approved for a mortgage is a huge step! It means you have a stable job, a steady income, good credit, and are responsible enough to buy a home. Most Realtors will not work with buyers who have not been pre-approved. Getting pre-approved is also a great way to get a “budget” for your home. No, you shouldn’t spend the whole amount you’re approved for, but it’s a good way to get a ballpark idea of how much you can afford. However, pre-approved does NOT mean approved! It is possible to get denied for the actual mortgage, even if you did go through the pre-approval process. Check out this article by Adam Lesner at Balance Process for things to stop doing if you don’t want your mortgage application denied:
-Don’t use credit cards past 30%
-Do not make large, unexplained deposits into your bank account
-Don’t change jobs
-Don’t make any large purchases- just survive on the necessities for now! Don’t let your liabilities increase.
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