Obtaining a mortgage pre-approval is a crucial step in the home-buying process, especially in a competitive market like Washington. However, many buyers overlook the importance of maintaining their pre-approval status. Here are essential tips on how to keep your mortgage pre-approval intact.
During the period between your pre-approval and closing, it’s vital to maintain stable finances. Avoid making any significant changes to your income, such as switching jobs, which could raise concerns for lenders. If you must change jobs, ensure it’s a position with similar or higher pay.
Refrain from making large purchases on credit while your mortgage application is in process. Big-ticket items, like cars or furniture, can increase your debt-to-income ratio and may lead to complications with your loan approval.
Make sure to pay all your bills on time. Late payments can negatively impact your credit score and may jeopardize your pre-approval. Check your credit reports regularly for any discrepancies and address them immediately.
Avoid taking on new debt in the period following your mortgage pre-approval. This includes new credit cards, personal loans, or any other type of credit. New debt can affect your credit score and overall readiness for the mortgage process.
Keep saving for your closing costs and additional expenses related to your home purchase. Lenders want to see that you have the funds available for these costs, as well as a financial cushion for emergencies post-purchase.
Open communication with your mortgage lender is critical. Inform them of any significant changes in your financial situation or if you encounter any issues while preparing for your home purchase. They can offer guidance to keep your mortgage pre-approval on track.
Ensure that your financial documents are current and accurate. Lenders may require updated pay stubs, tax returns, or bank statements to verify your income and assets. Providing timely documents can help dodge delays in the process.
Be prepared to provide confirmation of your employment and income when requested. This could include letters from your employer or pay stubs. Being organized will help facilitate a smoother closing process.
Maintaining your mortgage pre-approval in Washington requires diligence and awareness of your financial situation. By following these tips, you can ensure your pre-approval remains valid and move forward confidently in your home-buying journey.
