Dos and Don’ts of Mortgage Pre-approvals

Dos and Don’ts of Mortgage Pre-approvals

Being a homeowner comes with many additional responsibilities, some that begin well before placing an offer on the home. We want to make sure that you are prepared for qualifying by providing you with some helpful Mortgage Do’s and Don’ts. 

Following these guidelines will ensure that you are able to qualify for your mortgage at pre-approval time and, most importantly, still qualify when it’s time to take possession of your new home. Many people don’t realize that the Lender will revisit the borrower’s credit bureau status and previously provided, or newly requested, documentation prior to closing to confirm that the client is still below their lending ratio maximum. No one wants to see their dream for their new home collapse right before closing because of some mismanagement of finances and/or credit. 

Follow these Mortgage Do’s and Don’ts to obtain financing pre-approvals, and take possession of your property with confidence:

Dos

• Do work with a reputable real estate agent. For a list of trusted Realtors, please ask us.
• Do make a list of the top five things you enjoy about your current living conditions and five things you dislike.
• Do look into insurance. Mortgage life and disability insurance, also known as creditor insurance, insures your mortgage and mortgage payments should something tragic happen to you. We can offer you creditor insurance to cover your new mortgage. Speaking with an insurance professional is highly encouraged.
• Do ask to review your credit report and check for any discrepancies.  You may be surprised to find odd charges on your credit report or old debts.  By clearing them up now, you’ll save time processing your loan.
• Do increase your buying power and be in a stronger negotiating position by getting pre-approved.
• Do call your mortgage experts at Pinsky Mortgages at 778-990-8950 with any questions you have!

Don’ts

• After your pre-approval, don’t make any changes to your employment without first checking with us. Changes to your income can dramatically impact your ability to qualify for a home.
• After your pre-approval, don’t buy anything that will create debt such as cars, furniture, electronics, computers, vacations, jewelry, appliances, etc.
• Don’t modify your debts such as getting new loans without first consulting us to see how it will affect your approval. Even small transfers or consolidations can have an impact on your credit scores.
• Don’t always focus on rate. It’s easy to get caught up in the idea that comparing mortgage rates will guarantee you get the best bang for your mortgage buck. While this may be true for particular situations, there are many scenarios where this strategy is not effective.
• Don’t panic! The process of buying a home does not have to be painful or frustrating. We are here to help!