Do This… But Not That: Keep Your Mortgage Pre-Approval Process on Track
- Edith Parinas
- Dec 27, 2024
- 3 min read
Updated: Mar 21
Hi, I’m Edith Parinas—a mortgage agent who knows how exciting (and nerve-wracking) buying your first home can be.
Your mortgage pre-approval is a key step toward making your homeownership dream a reality. But did you know there are a few dos and don’ts that can make or break the process?
As someone who’s guided countless clients through their mortgage journeys, I’ve seen what works—and what doesn’t. So, let’s dive into some simple strategies to keep your pre-approval on the right track, all the way to walking through the front door of your new home.
Do This! 7 Tips for a Smooth Mortgage Pre-Approval
Understand Your Budget Know your financial picture before diving in. I’ll guide you through the details, but understanding your own income, expenses, and savings will help set realistic expectations.
Manage Your Debt Review your credit cards and loans. Reducing your debt-to-income ratio can improve your chances of pre-approval and help you secure a better rate.
Get Your Down Payment Ready Know the source of your down payment and ensure it’s documented. You’ll need to provide a 90-day history of related transactions.
Decide on Your Rate and Term: Fixed or variable? Short or long term? I’ll help you explore what works best for your financial goals.
Gather Your Documents Be prepared with financial details, like pay stubs, tax returns, and bank statements. Having these ready will streamline the process.
Stay Connected Keep me in the loop throughout your pre-approval journey. Whether you’re traveling or making an offer, I’m here to guide you every step of the way.
Read the Fine Print I’ll walk you through the details, but it’s always a good idea to review terms on your own or with a trusted advisor to ensure clarity.
But Not That! 7 Mistakes to Avoid During Pre-Approval
Don’t Go Over Your Budget Avoid placing offers on homes beyond your pre-approval limit. This could result in lender rejection and stretch your finances too thin.
Don’t Make Major Purchases Postpone buying a car or furniture until after closing. Large purchases can alter your debt ratios and jeopardize your pre-approval.
Don’t Touch Your Down Payment Once your funds are set aside, consider them off-limits for any other spending. Lenders need to see consistency.
Don’t Move Large Sums of Money Transferring money between accounts can trigger red flags under anti-laundering laws. Maintain a clear paper trail.
Don’t Apply for New Credit Avoid opening new credit accounts, as this can temporarily lower your credit score.
Don’t Change Jobs Stability is key during the pre-approval process. A sudden job change can make lenders wary of approving your loan.
Pay All Bills on Time Even one missed payment can negatively impact your credit score and complicate your pre-approval.
Ride That Pre-Approval All the Way Home
Your mortgage pre-approval is the foundation of your home-buying journey, and I’m here to make sure it’s a smooth ride. With the right strategies, you can save time, avoid stress, and secure a mortgage that truly fits your life.
Whether it’s finding the best rate or navigating the finer details, I’m obsessed with helping my clients save money and feel confident every step of the way. So, let’s get you one step closer to unlocking the door to your dream home—without any unnecessary detours.
Happy Holidays!
– Edith Parinas
'The Mortgage Agent ~ The Yogi ~ The Blogger'
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