Mortgage preapproval is not final loan approval. The lender still needs to review the completed application, supporting documents, the property, and conditions for the selected loan program. Ask which parts of your preapproval have actually been verified and what remains open.
1. Income or employment details change
A new job, a change in hours or pay structure, variable income, or a difference between reported and documented income can affect the amount a lender can use. If you are self-employed or receive commissions, ask what time period and documents the lender needs. Tell your loan officer about a planned change before it happens, if possible.
2. New debt changes the monthly budget
A car payment, furniture financing, a new credit card, or missed payment can change the credit and debt picture the lender reviewed. Even when a purchase seems affordable, taking on debt during the mortgage process can affect your options. Ask before opening credit or making a large financed purchase.
3. Cash to close is different from cash in the bank
Down payment is only one part of the cash needed at closing. Closing costs, prepaid taxes and insurance, deposits, lender credits, and seller concessions all affect the final figure. The lender may also need to verify the source and availability of funds.
If buying depends on selling your current home, ask for a realistic net proceeds estimate. A sale price is not the amount you will receive after paying off the mortgage and other liens, selling expenses, and any agreed credits. Ask how the sale and purchase dates affect the plan before agreeing to a nonrefundable deposit or deadline.
4. The home or loan terms change
A different purchase price, property type, appraisal, insurance cost, homeowners association dues, or property condition can affect the loan review and monthly payment. A low appraisal may require a new conversation about price, additional cash, or loan structure. A rate that has not been locked can change; a lock has an expiration date and conditions.
Before you make an offer, ask these five questions
- What income, assets, debts, and credit have already been verified?
- Is the approval dependent on selling another property or bringing a particular amount of cash?
- What payment did you use for taxes, insurance, HOA dues, and mortgage insurance?
- What loan or property conditions still need to be satisfied?
- Is the rate locked, and what happens if the closing date changes?
If something changes, call early
Tell your loan officer as soon as you know about a change to income, employment, debt, available funds, or the property. Ask for updated numbers and how the change affects the timeline. If the lender issues a revised Loan Estimate, compare it with the earlier version and ask why the terms or costs moved. Use the Loan Estimate and Closing Disclosure guide to review the figures before signing.
This guide describes common considerations for many purchase loans; program and property requirements vary. It cannot determine whether a particular borrower or home will qualify.
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