How NOT To Lose Your Loan Approval

Getting a loan preapproval isn't the end of your mortgage process. You could still lose out on receiving a loan if you make a financial flub before settlement.

I love my clients and when we're working together to purchase a home, I go through all the do's and dont's to help get us through the transaction smoothly.  However, there have been times a buyer will do something that could completely jeopardize their home purchase, such as quitting their job days before settlement or ordering a new bedroom set for their new home. Did you know these things could cost you your loan approval?

Here are some other things you want to avoid doing if you want to keep your loan and make it to the settlement table.

  • Making a big purchase: Do not make any major purchases. Buying a new car or furniture can change your debt-to-income ratio and your lender can deny you a home loan. Wait till after you close on the home before you start furnishing it.
  • Opening new credit: Thinking of opening a new credit card? This can effect your credit score and again, the lender can deny your loan and you can lose your dream home before getting to settlement.
  • Missing payments: Be extra vigilant about paying all your bills on time. A late payment can hurt your chances of getting a loan.
  • Cashing out: Avoid any transfers of large sums of money between your bank accounts or making any undocumented deposits, both could send up “red flags” to your buyer's lender.
  • Quitting your job: This may be obvious but if you do not have a source of income, a bank will not give you a mortgage. Even if you're quitting a job and starting a new one that pays more, the bank will deny your loan because they want to see you've been employed with the same company for a certain amount of time.

Like my tips? You'll love what I can do as your Realtor®. Don't forget, if you or someone you know is planning on buying or selling a home, give me a call and I'll make your home ownership dreams come true.

Kristy O'Connor
Weichert, Realtors - Media
606 E. Baltimore Pike, Media, PA

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.


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