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Loan Denial: Don’t Make These Mistakes When Buying a House

Loan Denial: Avoiding Common Mistakes After Pre-approval

Ever wondered why some people get their loan denied after getting a pre-approval? Well, it’s often due to some not-so-smart moves. Let’s dive into what you should NOT do after getting that initial thumbs up from your lender.

Understanding Pre-approval
Being pre-approved is like getting a green light in traffic. It means you’re likely to get the loan, but it’s not a guarantee. Don’t get too comfy and start making big financial changes; it might just switch to red!

Quitting Your Job
Thinking of quitting your job after pre-approval? Hold up! Your job is a big factor in the loan process. Lenders love stability, so keep that job to keep your loan on track.

Filing for Bankruptcy
Filing for bankruptcy is a massive no-no! It can tank your credit score and make lenders think twice. Keep your financial slate clean to stay on the safe side.

Accumulating New Debt
Piling up new debt is like adding weights to your financial backpack. It makes you less attractive to lenders and can crush your loan approval chances.

Making Large Purchases
Dreaming of a new car or a lavish holiday? Wait until after the loan closes. Big purchases can mess up your debt-to-income ratio, a key factor for lenders.

Skipping Bill Payments
Missed payments can hurt your credit score fast. Keep paying those bills on time to show lenders you’re reliable.

Changing Bank Accounts
Switching banks might raise eyebrows. Lenders need to trace your funds, so stick with what you have until you cross the loan finish line.

Applying for New Credit
New credit applications can ding your credit score. If you’re hunting for loans or credit cards, pause until after your home loan is secured.

Co-signing Loans
Helping someone with a loan by co-signing? That’s generous, but risky. It can increase your debt load and scare off lenders.

Changing Your Marital Status
Tying or untying the knot? Big life changes can complicate your loan process. Keep things steady until after you get the loan.

Failing to Report Changes
Got changes in your financial life? Tell your lender! Transparency is key to maintaining trust and keeping your loan on track.

Ignoring Lender’s Advice
Your lender knows the drill. Ignoring their advice can derail your loan process. Stick to the plan and follow their guidance.

Getting pre-approved is just the start. Keep your financial life stable and follow these tips to avoid loan denial. Remember, it’s all about showing lenders you’re a safe bet.


  1. Can I change jobs after getting pre-approved?
    Avoid it if possible. If necessary, consult with your lender to understand the impact.
  2. Is it okay to buy a car during the loan process?
    Better wait until after loan closing. Big purchases can affect your loan approval.
  3. What if I already applied for new credit cards?
    Inform your lender immediately to assess the impact on your loan process.
  4. Can co-signing another loan affect my pre-approval?
    Yes, it can increase your debt and affect loan eligibility. Discuss with your lender before co-signing.
  5. How do changes in marital status affect my loan?
    They can alter your financial profile and obligations. Always consult with your lender before making such decisions.

Got questions or need to discuss your loan options? Talk or text us at 916-570-6979, email at hello@newwaymortgage.com, or schedule an appointment at www.meetnewway.com. Check out our YouTube channel and subscribe at www.newwayhome.com for more insights!

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