Pre-Approval, Before and After

February 24, 2021
Kourtney Manley

A good way to make sure you get approved for a mortgage loan as a first-time homebuyer is to go through the pre-approval process. It can help to show competency as a buyer and make you look more reputable as opposed to someone who could not get pre-approval. Knowing this information is very important for prospective buyers, so let us take a look at what goes into the pre-approval process and the things you should and shouldn’t do after getting pre-approval.


To get mortgage pre-approval is to get a loan officer to look through your finances and credit history and give an amount that you can borrow for a home loan, an amount you can pay monthly, and what your interest rate should be. Not just anyone can get pre-approved though. You must meet a certain standard of reputation based on your finances and credit history if you expect to be approved. There are three main reasons why pre-approval is so valuable. The first reason is that it puts you on a solid track to closing on your actual mortgage. You will already have all your information in the system after getting pre-approved, so the mortgage application process will be much quicker. The second reason is that pre-approval gives you a leg up on other potential buyers. It shows lenders that you are in a good financial state and have good credit history before they even meet you. People who don’t have pre-approval will not have this advantage. The last reason to get pre-approval is to help you understand what you can and can not afford. You will know what homes you should even consider after this.

Things you should do

Three things that you should do after getting pre-approved are to make sure your lender knows all relevant information about you and your finances, have all paperwork prepared and on hand, and expect changes in circumstances. Making sure your lender knows everything about you can help you avoid any complications in the mortgage application process. Lying or withholding information can make you look untrustworthy. It could even lead to you being denied. Having all your paperwork prepared and on hand is just a way to make the mortgage process quicker and more transparent. Lastly, being prepared for change will just help you in being ready for anything in the future. The mortgage industry could change randomly and it’s just better to be prepared.

Things you should not do

The main thing you shouldn’t do is to make random changes in your life. This can take the form of changing your job, for example. Lenders will have to reconsider your pre-approval based on a change like this, so it is important to keep things the same for the time being. Other examples include maintaining your credit score and not shifting finances around accounts.

Written by Kourtney Manley, Business Analyst at OnlineApplication

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