What Can Affect Your Mortgage Approval Before Closing?

After you are preapproved and under contract, your loan still goes through final underwriting. Lenders often re-verify employment and may review your credit again shortly before closing. Changes to your finances during this time can affect your approval, so it pays to keep things steady.

Things to avoid until after closing

• Opening new credit such as credit cards, car loans, or store financing
• Making large purchases on credit, like furniture or appliances for the new home
• Changing jobs or pay structure without talking to your loan officer first
• Moving money around or making large deposits you can't document
• Missing payments on any existing bills
• Co-signing for someone else's loan

Things outside your finances

Appraisal. If the home appraises for less than the purchase price, you, the seller, and your agents may need to renegotiate or adjust your plans.

Title issues. Liens or other problems with the property's title need to be resolved before closing.

Insurance. Your lender will need proof of homeowner's insurance before closing.

How to stay on track

• Call your loan officer before any financial change, even one that seems small
• Respond quickly to document requests
• Keep copies of pay stubs and statements as they come in
• Keep paying every bill on time

This article is general information, not financial or legal advice, and is not a commitment to lend. Loan programs, requirements, and costs vary. Talk with us about your specific situation.