A loan pre-approval is an important step in the home buying process. It shows how much of a loan you can realistically afford, based on your credit rating, income and expenses.
Keep in mind that there are certain things to do after a loan pre-approval to boost your chances of getting a final approval. These include:
- Don’t apply for new credit: Since your lender will do another credit check before approving your loan, don’t do anything that will negatively affect your credit rating. Applying for new credit means that your score will take a hit.
- Don’t pay off all your debt: You could be using up money that you might need for your new house. Also, closing credit cards can lower your credit score.
- Don’t co-sign loans: These factor into your debt-to-income ratio and affect your credit score. Avoid co-signing any loans, including car and student loans.
- Don’t change jobs: This can cause delays with the lender because they’ll need to verify your employment.