A mortgage that gets denied is one of the most common reasons a real estate deal falls through. One of the most important steps to successfully purchase a home is to get pre-approved for a mortgage before shopping for homes. The primary reason is to look for homes in your price range and don’t envision yourself in a home that’s out of your range, leading to disappointment. This is supposed to be a very fun time all this house hunting! Seems obvious right?
But, did you know that even though you get pre-approved for a mortgage before shopping for homes doesn’t mean there is a guarantee that you will successfully obtain the financing? It’s possible a mortgage can get denied even after pre-approval.
Many of the reasons a mortgage is denied after pre-approval are actually fairly common. Below, I’ve listed the most common reasons a mortgage is denied after pre-approval and if you’re aware of what they are, you’ll greatly reduce the chance that things will turn south for you.
Change of Employment – Stay at your job or related field during this time (if you have a choice.) Negative Item On Credit – Let’s take a very close look at these reports and clean up anything that requires it. A popular website that monitors credit for free is Credit Karma.
Additional Debt(s) Are Incurred – Don’t purchase anything that has payments attached to it or take out add’l lines of credit during this time.
Loan Requirements Or Lender Guideline Changes - Keep in touch with me to ensure your program remains unchanged.
Issues With Appraisal - Many of the issues with a bank appraisal are fairly common. Each property is different. We’ll talk about your home of choice going into things and I can predict almost any appraisal issues.
A few additional tips:
• Don’t make any large deposits into your bank accounts without having proof as to where they came from
• Don’t withdraw large amounts of money from your bank accounts
• Continue to save money in the event your closing expenses are more than originally estimated
• Provide all requested documentation to lender in timely fashion
Call me with any questions, I'll set you on the right track right away.
Sergio Lebrija Evolve Bank & Trust
602.618.7686 Cell
NMLS# 252088
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