Being pre-approved is just the initial step towards purchasing a home. The below information will provide a guideline of things to do and not to do when you have been pre-approved. These tips will likely enable you to get better financing terms and also make sure kingdom valley Islamabad you don't undermine your goals of owning a home.

WHAT NOT TO DO:

1: DON'T TAKE ON NEW CREDIT

• The bank will review your credit again just before closing.
• New credit inquiries will lower your credit score. It will also have to be explained. If you are granted credit the new installment will need to be verified , and the ratio of debt to income will have to be readjusted for the new debt.

2: DON'T INCREASE YOUR DEBTS

• The purchase of a large amount of money can reduce any chance of closing.
• The use of cash can deplete the cash reserves, which could play a role in your decision to approve. A large purchase made on credit could increase your debt and can lead to your ratio of debt to income not being sufficient when it is recalculated.

3: DO NOT RUIN YOUR CREDIT

The pre-approval process is based on your credit score; income and assets at the time it's issued.

• Do not close your accounts
• Don't miss any payments
• Avoid contacting credit inquiries
• Do not raise your credit balance

4: DON'T MAKE LARGE DEPOSITS

All assets must be paper trailed, that's why cash cannot serve as a closing tool. If you're not able track the money in paper so far as the bank's perspective, the funds aren't even there.

5: DO NOT CO-SIGN FOR LOANS

• If you sign a co-signing agreement with someone, the debt will be recorded on your credit report and the new debt could negatively impact your ratio of debt to income.
• If you have the canceled check for a minimum of 12 months that reflect payments coming directly from your account to the cosigner, the payment could be removed.

6: DO NOT QUIT OR CHANGE JOBS

Your job will be re-verified by your employer before closing. Obviously if you're not working the income you earn will be taken off. If you're preparing to start a new job, you'll require pay stubs to prove earnings.

7: IGNORING LENDER REQUESTS

When your Loan Officer requests a document follow their directions. Provide all documents with all pages even if they're blank as soon as possible to keep from delays.

WHAT TO DO:

1. Send all requested documents as soon as possible and include all pages, even if they're blank
2. Keep all Pay stubs and Bank Statements in a safe place in case they're needed so they're readily accessible
3. Be sure to pay your loans and debts in full