Getting a San Antonio Real Estate mortgage pre-approval is an initial step towards homeownership. Once you are pre-approved, you can confidently start looking for the perfect home. But with all the excitement, don’t forget that you still don’t have the physical money on your hands just yet. There are situations when your mortgage preapproval can be revoked by the lender. Here are some of them:
- Changing jobs
It is common to change jobs in your entire life but if you change jobs more often, it sends a strong signal to the lender that you might not be creditworthy. Keep in mind that your employment status is one of the most important criteria that impact your loan. When you keep on switching jobs especially with the different line of work, it will be very hard to convince the lender that you will have a steady source of income to pay for the loan.
- Taking additional loans.
Another way to have your Texas Hills Real Estate mortgage application denied is by taking an additional debt before closing a sale. Now that you know how many loans you can get from a mortgage, it can be tempting to acquire another loan for different purposes (say a car loan or a personal loan). But doing so can get your mortgage approval in disarray. Remember that your final loan will be determined by your credit score. If your credit score will go lower because you acquired additional loans, you might be denied the mortgage.
- Making large deposits on your account
The lenders will check how much money you have in your savings account. This is to make sure that you have a standing fund that you can use to pay for the down payment plus other expenses. It can also serve as a proof that you have a steady source of income that you can use to pay your monthly loan. If you will make a one-time huge deposit on your account, it will look suspicious for the lenders. Be sure to explain to the lender why you made the deposit in writing. You also need to prepare a document as to the source of the money you use for the deposit.
- Getting divorced.
If you applied for a mortgage with your spouse, the pre-approval will only continue if your relationship remains intact. You need to stay married when you buy your home. If things didn’t work out with your relationship, the mortgage can be canceled. This is because the lender assessed your qualification as a partner, not an individual. When you become separated, your financial situation can change. Though you can still be qualified for a loan when you become single, the mortgage terms you can get will definitely be smaller than when you still have a partner.