If you decide to hire a real estate agent when buying a house, the agent will ask if you are preapproved for a loan. If not, they will suggest getting preapproved. Once you get this preapproval, it makes you a qualified buyer, but it does not guarantee that you can get a loan. You must protect your credit and finances after getting preapproved if you want to get approved for a loan when you find a home to buy. Here are some tips to help you achieve this goal.
Avoid Missing Payments
Your preapproval is based on your current credit score and information. If you get preapproved and then miss a payment on an account, you jeopardize your credit. Missed payments harm credit scores, and even one missed payment can be devastating. Therefore, you must pay all your bills on time and avoid all late payments.
Do Not Add to Your Debt
Your preapproval also factored in your debt. If you suddenly have new debt, it might change your financial position enough that you no longer qualify for a loan. As a rule of thumb, you should not apply for any new credit lines or loans during this time. If you want to buy a new car, wait until after you close on your home loan. You might also want to avoid using your credit cards during this time unless you pay them off monthly.
Keep the Same Job
The next thing to focus on is keeping your job. Switching jobs after a preapproval can also pose risks to you. Lenders look at a person's job history, and they might not approve an applicant unless they have two years at the same job. If you switch to a new job, this time period starts over, putting you at risk for not qualifying for a home loan.
Avoid Spending Cash You Have
The other thing to consider is the cash you have on hand for your down payment. If you have money in the bank for the down payment, your bank will probably count on you using this for the home purchase. If you spend it, you might not qualify for a loan.
By following these tips, you can protect your credit and finances. When you protect these things, you should not experience difficulties turning your preapproval into an approval. If you have questions about home loans or preapprovals, talk to a lender today.
Hello, my name is Sigmond Jenner. Welcome. I am here to talk to you all about acquiring personal loans for emergency expenses. Although everyone should have an emergency fund in a savings account, there are many barriers to achieving that goal. In the meantime, you can look into acquiring a loan to cover emergency expenses that may come up. You should be prepared ahead of time, so you can act fast when unexpected financial expenses arise. I will provide information you can use to prepare yourself for this process. Please come back again anytime to learn more about acquiring loans as needed.