Pre approved for a loan? You want to be sure to heed these three warnings. When you pay off some debt the line of credit is often closed which may result in a drop in scores. Applying for new credit can drop your score, especially if you open the new line of credit. New credit can also reduce your buying power. If you are not sure the best path from applying for a mortgage loan to the closing table, consult with your loan officer early and often!
After you have applied for a loan, received a pre approval and found a home to purchase, the lender will submit the file to underwriting. Underwriters often have requests as a follow up to the approval, timely responses to these requests keeps you on target to meet your closing date!
Getting pre approved for a mortgage is a perfect first step. Be sure and stay on track and help us help you by avoiding these 3 mistakes. After your pre approval don't make any changes without consulting the lender.