[et_pb_section fb_built=”1″ _builder_version=”4.17.4″ _module_preset=”default” custom_padding=”3px|||||” da_disable_devices=”off|off|off” global_colors_info=”{}” theme_builder_area=”post_content” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.17.4″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.17.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n
When it\u2019s time to purchase a home, one of the first things you should do is get pre-approved for a home loan. In this highly competitive market, mortgage pre-approval is \u201cthe ace up your sleeve\u201d because it emphasizes that you are serious about buying a home and have the finances to back you up.<\/span><\/p>\n While having a pre-approval letter gives you an advantage at the negotiating table, it\u2019s not a guarantee that you\u2019ll close the loan.<\/span><\/p>\n That said, it may surprise you to learn that lenders may turn you down for a loan even if you get pre-approved. Let\u2019s look at some of the reasons why this may happen and how to prevent it.<\/span><\/p>\n The pre-approval process is quite similar to final approval, wherein lenders gather your financial documents and see where you are at. Based on all your documentation, a mortgage professional can tell you what size of the loan you are qualified for and the interest rate you may get.\u00a0<\/span><\/p>\n You can also receive an estimate of what your closing costs will be. The question is, why can you get denied even after pre-approval?<\/span><\/p>\n Significant changes can occur with your financial situation between pre-approval and closing. This is the main reason for getting turned downed after pre-approval.\u00a0<\/span><\/p>\n Lenders will go through all your financial documents once more as you approach closing day. If they discover that your creditworthiness or financial standing has changed significantly since pre-approval, they can use this as a basis for denying your loan.<\/span><\/p>\n Here are the top reasons why your loan can be in jeopardy even after pre-approval.<\/span><\/p>\n Credit reports pulled during pre-approval are usually good for 120 days. If you don\u2019t close a loan within that time, lenders would need to pull a new credit report once more.<\/span><\/p>\n If you\u2019ve been late on payments, closed any of your accounts, or have taken on new debt since pre-approval, your credit score can take a hit and cause a denial on your loan.<\/span><\/p>\n Lenders may check if you have incurred additional debt that may affect your DTI. For example, after pre-approval, buying a new car is not a good idea since the new loan can bump your DTI above the limit.<\/span><\/p>\n Mortgage approval requires a history of stable and reliable employment. Changing jobs during the home buying process can impact your final loan approval.<\/span><\/p>\n There\u2019s still hope, though! If you can prove that you have the same salary or higher or get a job within the same industry, you can still close the loan.<\/span><\/p>\n If you go from salaried to commission or completely change careers, lenders may have a hard time judging your future stability.<\/span><\/p>\n Making financial changes can sabotage your pre-approval, so it\u2019s better to know what you should do and not do between pre-approval and closing.<\/span><\/p>\n That said, the best thing you can do between pre-approval and closing is to keep things as they are from a financial standpoint.<\/span><\/p>\n <\/span>Do you need help in closing a home loan fast? Our loan officers can guide you on what steps to take to close quickly and with ease. Give our loan specialists a call or contact us through our website to learn more. We\u2019re always here to help.\u00a0<\/span><\/p>\n * Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.<\/strong><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" When it\u2019s time to purchase a home, one of the first things you should do is get pre-approved for a home loan. In this highly competitive market, mortgage pre-approval is \u201cthe ace up your sleeve\u201d because it emphasizes that you are serious about buying a home and have the finances to back you up. While […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[14],"tags":[],"_links":{"self":[{"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/posts\/1729"}],"collection":[{"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/comments?post=1729"}],"version-history":[{"count":2,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/posts\/1729\/revisions"}],"predecessor-version":[{"id":1734,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/posts\/1729\/revisions\/1734"}],"wp:attachment":[{"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/media?parent=1729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/categories?post=1729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ggmortgage.com\/wp-json\/wp\/v2\/tags?post=1729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What Happens During the Pre-Approval Process?<\/span><\/h1>\n
Possible Reasons You Can Get Denied By A Mortgage Lender Even After Pre-Approval<\/span><\/h1>\n
A Negative Hit on your Credit\u00a0<\/span><\/h2>\n
Increase in Debt<\/span><\/h2>\n
Change in Employment<\/span><\/h2>\n
Tips That Help Ensure Your Loan Stays Approved Until Closing<\/span><\/h1>\n
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