Do This… But Not That: Keep Your Mortgage Pre-Approval Process on Track

Hi, I’m Edith Parinas—a mortgage broker 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

1. Understand Your BudgetKnow 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.

2. Manage Your DebtReview 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.

3. Get Your Down Payment ReadyKnow the source of your down payment and ensure it’s documented. You’ll need to provide a 90-day history of related transactions.

4. Decide on Your Rate and TermFixed or variable? Short or long term? I’ll help you explore what works best for your financial goals.

5. Gather Your DocumentsBe prepared with financial details, like pay stubs, tax returns, and bank statements. Having these ready will streamline the process.

6. Stay ConnectedKeep 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.

7. Read the Fine PrintI’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

1. Don’t Go Over Your BudgetAvoid placing offers on homes beyond your pre-approval limit. This could result in lender rejection and stretch your finances too thin.

2. Don’t Make Major PurchasesPostpone buying a car or furniture until after closing. Large purchases can alter your debt ratios and jeopardize your pre-approval.

3. Don’t Touch Your Down PaymentOnce your funds are set aside, consider them off-limits for any other spending. Lenders need to see consistency.

4. Don’t Move Large Sums of MoneyTransferring money between accounts can trigger red flags under anti-laundering laws. Maintain a clear paper trail.

5. Don’t Apply for New CreditAvoid opening new credit accounts, as this can temporarily lower your credit score.

6. Don’t Change JobsStability is key during the pre-approval process. A sudden job change can make lenders wary of approving your loan.

7. Pay All Bills on TimeEven 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.

LET'S TALK MORTGAGES

Happy Holidays!

– Edith Parinas

'The Mortgage Broker ~ The Yogi ~ The Blogger'

Hello@EdithParinas.com