If you already have a mortgage pre-qualification, congratulations! This is a significant step towards your dream of owning a house. I’m here to guide you through the do’s and don’ts of preserving your pre-qualification.
Do:
- Shop for a house within your pre-approved budget
- Send me listings of properties you are interested in. We can discuss the mortgage details for specific properties.
- Keep your financial situation the same: Maintaining financial stability is crucial during the home-buying process. Let me know if you are making changes in your financial life, such as opening new credit accounts or taking on additional debt. We can discuss how it will affect your pre-qualification.
- Inform your financial advisor about your home purchase plans: If you have down payment money tied up in the market or are working with a financial advisor, it’s important to keep them in the loop. They can help you make informed decisions regarding your investments, potentially moving your money to lower-risk options or keeping a watchful eye on market conditions to withdraw your down payment at the most opportune time.
Don’t:
- Change or quit your job: A stable source of income is one of the most critical factors in the mortgage approval process. Changing jobs or leaving your current job can jeopardize your pre-qualification. If you’re considering such a change, please reach out to discuss its impact on your home buying plans.
- Increase your debt (Please no big purchases): Taking on new debt or making significant purchases on credit can negatively impact your debt-to-income ratio, which is a crucial factor in your mortgage approval. It’s essential to avoid any major financial changes that can lead to increased debt.
- Pretty much anything that affects your financial situation: While this may seem like a broad category, it’s a good rule of thumb to avoid any financial changes during the homebuying process. This includes co-signing loans, missing payments, or anything that alters your creditworthiness.
If you find yourself in a situation where you need to make any of the above-mentioned “Don’ts,” the best course of action is to reach out to your mortgage broker immediately. We can assess the impact of these changes on your pre-qualification and provide guidance on how to mitigate potential issues.
Conclusion
In conclusion, preserving your pre-approval is all about maintaining financial stability and making informed decisions throughout the homebuying process. By following the do’s and don’ts outlined above, you can ensure that your path to homeownership remains clear and stress-free. If you have any questions or need guidance, don’t hesitate to contact me.
Hi, I’m Jill, your mortgage pro. I am here to make the world of mortgages less confusing so you can feel confident in your financial decisions. Through my blog, I aim to provide you with the knowledge and guidance you need to make informed decisions. Your financial peace of mind is my top priority.
