What to Do After Mortgage Pre-Approval: The Do's and Don'ts
What to Do After Mortgage Pre-Approval: The Do's and Don'ts
Congratulations! You've received your mortgage pre-approval letter. You know how much house you can afford, and you're ready to start shopping. But wait—getting pre-approved does not mean your loan is guaranteed.
Before the loan actually closes, underwriters will re-check your credit, income, and bank statements. A single wrong move during this period can cause your loan to be denied at the last minute. Here is the ultimate guide on what to do (and what absolutely NOT to do) after getting pre-approved.
The DO's: What You Should Do
- Continue Paying All Bills on Time: Your credit score will be pulled again right before closing. Even one late payment on a credit card, auto loan, or current mortgage can derail your approval. Set up auto-pay if necessary to ensure nothing is missed.
- Keep Your Employment and Income Stable: Underwriters verify your employment multiple times, sometimes even on the day of closing. Keep your job, maintain your current hours, and don't change your pay structure (e.g., switching from salary to commission).
- Save All New Paystubs and Bank Statements: As months pass during your home search, your documents will expire. Lenders typically need documents that are no older than 30-60 days. Keep downloading your most recent paystubs and bank statements so they are ready when asked.
- Provide Requested Documents Immediately: If your loan officer asks for an updated document or a letter of explanation, provide it within 24 hours. Delays on your end mean delays in closing.
The DON'TS: What You Absolutely Must Avoid
- Do NOT Apply for New Credit: Do not open a new credit card, take out an auto loan, or co-sign a loan for someone else. Every time your credit is pulled, your score can drop. More importantly, new debt increases your Debt-to-Income (DTI) ratio, which can disqualify you.
- Do NOT Make Large, Undocumented Deposits: If you suddenly deposit $5,000 in cash into your checking account, the lender will flag it. Underwriters require a "paper trail" for all large deposits to ensure the money isn't a secret loan. If you are receiving gift funds from a family member, ask your loan officer for the proper "Gift Letter" procedure first.
- Do NOT Change Jobs or Quit: Even if the new job pays more, changing employers during the mortgage process is a massive red flag. If it's in a different industry, you might be denied entirely. If you must change jobs, tell your loan officer immediately before accepting the offer.
- Do NOT Buy Furniture or Appliances on Credit: It's tempting to start buying furniture for your new home, especially with "0% financing for 12 months" offers. Don't do it. That new debt will be factored into your DTI and could kill your loan. Wait until after the loan has closed and funded.
- Do NOT Close Existing Credit Accounts: Closing a credit card can actually lower your credit score by reducing your available credit history and increasing your credit utilization ratio. Leave all accounts exactly as they are.
The Bottom Line
Your financial profile needs to remain frozen in amber from the day you are pre-approved until the day you receive the keys to your new home. When in doubt about any financial move, call your loan officer first!
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