I often get contacted at the eleventh hour because financing goes sideways on a new home purchase. The most common reason is that the mortgage professional they hired didn’t thoroughly review the application during the pre-approval stage.
Here’s how to avoid this from happening to you and improve the chances of getting your mortgage approved on time.
To start, you need to get pre-approved, but understand what type of pre-approval you have. Not all pre-approvals are created equal. It depends on whether your mortgage professional has verified your income/down payment documents and completed a credit check.
Provide the documents upfront
Be sure to provide your mortgage professional with a letter stating your income, pay stubs and bank statements verifying the source of your down payment. Providing this information upfront gets it out of the way, so it’s one less thing to worry about later.
Make sure your credit gets checked
Not all mortgage professionals do this at the pre-approval stage. However, it could prevent you from getting your final mortgage approval. So if you’re not sure, it’s better to double-check and make sure your credit is good. Ask your mortgage professional what your credit score is. They might even provide you with some tips.
Avoid big purchases and changing jobs
Before purchasing a home, don’t buy a car or run up credit card balances. It could lower the amount you can qualify for. In addition, don’t change your job. If a career change is necessary, talk to your mortgage professional. We understand that depending on your industry, it gets looked at differently.
Skipping these essential pre-approval steps could affect whether you get approved for a mortgage when making an offer on a house. Let’s chat to ensure you have the proper mortgage pre-approval, apply today.