When pre-approval is asked for, it will be a preliminary home mortgage approval suggesting that the mortgage will likely be approved for a particular down payment and purchase price.
This preliminary approval will not matter once the application goes to review for the actual mortgage loan. Stage 1 finished when the "underwriter", not the loan officer becomes involved.
It is the task of the "underwriter" to make certain that the purchaser can meet the lending criteria of the banking institution. He does this by looking at the purchaser's credit, assets, income, job history and additional things of that nature. This is Stage 2.
This procedure ought to be a formality if the Stage 1 loan officer did good job. Typically speaking this stage moves along smoothly. That being said, from time to time the purchaser changes his loan "risk" without meaning to do this, but affecting the mortgage approval. The buyer doesn't mean to decrease his loan probability, it's just one of those things.
Consider this article as a brief guide on what you shouldn't do when you're between the above two steps. Adhering to these tips will help keep the risk profile even.
1. Don't purchase a new automobile (or take on a bigger lease payment) 2. Don't give up your job or change industries (and certainly don't switch to a largely commissioned role) 3. Don't transfer large sums of money into or out from your bank accounts (and remember that "large" is relative) 4. Don't miss a payment to a creditor (even if you don't think you owe it) 5. Don't open a new credit card (even if you're getting 10% off your purchases) 6. Don't accept a cash gift without talking to your loan officer first (due to the fact that there's rules on how to accept them)
There might be a quantity of additional "don'ts" however this is a good beginners list. It may not be possible to avert some problems. Discuss this with your loan officer if you have to break a "rule." You should have professional guidance throughout this process due to the fact that there are a lot of "snafus" possible during the process.
Keywords: mortgage, mistakes, pre-approval, loan officer