When you’re planning to apply for a mortgage loan, it’s essential to get preapproved for the process to go as smoothly as possible. However, there are some actions you should avoid doing before applying for pre-approval to ensure you don’t jeopardize your chances of securing the loan. As Bruce Singer, Senior Loan Officer, NMLS# 197960, with Vision Home Mortgage, I’m here to share five critical things you should not do before getting pre-approved for a mortgage loan.

1. Don’t Make Major Purchases: It’s tempting to buy a new car, boat, appliances, or furniture for your future home, but hold off until after you’ve secured your mortgage loan. Significant purchases can affect your debt-to-income ratio and your credit score, which could lead to a higher interest rate or even disqualification for the loan.
2. Don’t Quit Your Job: Lenders need to see a stable and consistent employment history when considering your loan application. Changing jobs, especially right before applying for a mortgage, can raise red flags for lenders. Even if you receive a higher salary in your new role, it’s best to maintain your current employment status to avoid any complications in the approval process.
3. Don’t Max Out Credit Cards: Keeping your credit card balances as low as possible is crucial before applying for pre-approval. A high credit utilization rate can negatively impact your credit score and debt-to-income ratio. Aim to pay off as much of your credit card debt as possible to present yourself as a lower-risk borrower to potential lenders.
4. Don’t Have Late Payments: Your payment history is a significant factor in determining your creditworthiness. Late payments on credit cards, mortgages, or student loans can severely damage your credit score. It’s important to make all your payments on time to maintain a strong credit history and improve your chances of getting pre-approved for a mortgage loan.
5. Don’t Forget to File Taxes on Time: Lenders often request tax returns during the mortgage approval process to verify your income and financial stability. If you fail to file your taxes on time, it can raise concerns for lenders about your reliability as a borrower. Stay on top of your tax filings to ensure a smooth pre-approval process.
   

By avoiding these actions before applying for pre-approval, you can present yourself as a more attractive candidate for a mortgage loan. This will increase your chances of securing the best terms and interest rates. As always, feel free to reach out to me at Vision Home Mortgage for personalized advice and assistance throughout your home-buying journey.