Many people don’t realize their Florida mortgage loan can be denied, even if they’ve been pre-approved for it. In fact, the only time you can be certain your mortgage is approved is when you actually close the loan.

Some people get confused by commonly used mortgage terminology. Getting pre-qualified for a mortgage is not the same as getting pre-approved. When your lender pre-qualifies you, the lender simply looks briefly at your overall financial situation and then provides a number that they might be willing to loan you. The pre-approval process is much more in depth, and the lender looks at your credit report, verifies your income, and so on. But neither of these things guarantees your loan.

The pre-approval process can help you identify any problems with a Florida mortgage approval, help you get a real estate agent (many won’t work with people who haven’t been pre-approved), and help you focus on houses you can afford. But if your financial picture changes between pre-approval and final approval, you could be denied the loan. And with today’s low rates and lots of people buying homes in Florida, the time between pre-approval and closing could be even longer.

Changes include things that affect your credit score, or changes in income, assets, or debt levels. So, what should you avoid while waiting to close?

  • Don’t tap into your savings, transfer large sums between accounts, or make random, undocumented deposits into your accounts.
  • Don’t switch jobs. This includes moving from salary to commission or other things that affect your paycheck (raises are okay).
  • Don’t take on any new debt, like credit cards or new cars.
  • Don’t accept cash gifts without the right paperwork (talk to your loan officer first).
  • Do pay your bills on time, even if you are disputing them.
  • Do continue to save as much as possible, in case you run into other unexpected expenses. Some things may be outside your control, like losing your job or having medical expenses. You may have to buy a new appliance, make emergency home or auto repairs, or face other unexpected issues. In general, though, check with your lender first to see how these expenses might affect your loan approval.

If you’re planning on buying a home in Florida, check with Embrace Home Loans. We’ll help you with the pre-approval process, and we’re always available to answer your questions while you’re waiting to close your Florida mortgage. Call us today at 407-733-6425.

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