Getting a mortgage pre-approval is a crucial step in the home-buying process, especially in Washington where the real estate market can be competitive. However, it’s important to understand how to keep your pre-approval active to avoid any interruptions when you're ready to make an offer. Below are several tips to ensure your mortgage pre-approval remains valid.
1. Maintain Your Financial Stability
Once you receive your pre-approval, avoid making any significant changes to your financial situation. This includes refraining from taking on new debts, such as loans or credit cards. Lenders look at your debt-to-income ratio, so it’s essential to keep your existing financial profile stable.
2. Keep Your Credit Score Steady
Your credit score plays a significant role in your mortgage pre-approval. Regularly check your credit report to ensure there are no errors and that your score remains high. Avoid missing bill payments and refrain from making large purchases that might impact your credit score negatively.
3. Continue to Communicate with Your Lender
Stay in touch with your lender throughout the duration of your pre-approval. Inform them about any changes in your financial situation, such as job changes or significant purchases. Open communication helps your lender understand your position and ensures that they can offer support when needed.
4. Update Documentation Promptly
Your pre-approval may have conditions that require you to provide up-to-date documentation, such as pay stubs or bank statements. Make sure to update these documents promptly if there are any changes. Most lenders will need current paperwork to keep your pre-approval from expiring.
5. Beware of Expiration Dates
Most pre-approvals have a definitive expiration date, usually ranging between 60-90 days. Know when your pre-approval is set to expire and work with your lender to renew it, if necessary. This can generally be done with a quick review of your finances rather than a complete reset of the application.
6. Stay within the Limits of Your Pre-Approval
Stick to the price range of homes that your pre-approval covers. If you suddenly decide to look at homes outside of that range, it may require a re-evaluation of your financial status which can potentially lead to a new pre-approval process.
7. Avoid Job Changes
Stability in your employment situation is crucial. If you anticipate a job change, it's wise to wait until after closing on your mortgage to make that move. A sudden job change might raise questions about your income stability and affect your pre-approval.
8. Be Aware of Market Changes
The real estate market can change rapidly, especially in growing states like Washington. Being informed about market conditions can help you time your home purchase effectively. If interest rates rise, it may prompt you to act quicker to secure your pre-approval rate.
By following these steps, you can maintain your mortgage pre-approval status in Washington. Staying proactive and informed will not only give you confidence during your home-buying journey, but also ensure you are well-prepared to secure your ideal property when the time comes.
