When buying a home, there is so much to know and remember, it is easy to forget some of the more important details. So, we’ll just have to remind you! Here are a few things to avoid doing after you have been pre-qualified for a loan.

1. Apply for new credit

A pre-qualification is simply a snapshot of your current situation. Anything that changes between the point of your pre-qualification and your settlement date will influence where you stand. Applying for a new credit card will likely change your credit score which will have an effect on your interest rate. If you are serious about buying a house, you should hold off on applying for new credit until the loan closes.

2. Change jobs

Without an explanation, this may seem a bit odd, but it is true. Changing jobs after being pre-qualified can hold up the process since you will have to verify your employment all over again. While this isn’t necessarily the worst thing that could happen, putting the job search on hold for a while may help prevent issues.

3. Missing bill payments

While this may seem like a given, it is just as important that you pay everything on time after you are pre-qualified. Not only could missed payments affect your credit score, it could also make it look like you’re misrepresenting yourself following the pre-qualification.

4. Make large purchases

The reason you need to watch your spending is due to the fact that buying high-dollar items, especially on credit, will change your debt-to-income ratio. If this change is too drastic, it could delay or cancel the process, just like changing jobs would.

5. Make odd, unusually large deposits

Lenders want to make sure you are who you claim to be financially. That’s why any unusual deposits going into your account could draw questions about whether someone is helping you finance the home, or you are trying to make it look like you have more money than you actually do. If you get a bonus check, or something similar, make sure you document it somewhere. A copy of the check is helpful to show the lender if any questions about the deposit arise.

In summary, once you have been pre-qualified, it is best to hold off on making any major financial decisions until the close of your loan. If you can hold off until after the closing is done, there shouldn’t be any delays related to the financing. Want to learn more about our mortgage loans? Visit https://centralnational.com/mortgages/

5 Things to Avoid Doing Following Pre-qualification for a Home Loan
Tagged on:         

Leave a Reply

Your email address will not be published. Required fields are marked *

You are now leaving CNBconnect

You have requested a web page that is external to the Central National Bank (CNB) web site. The operator of the site you are entering may have a privacy policy different than CNB. CNB does not endorse or monitor this web site and has no control over its content or offerings.

You will be redirected to

Click the link above to continue or CANCEL