So, you’ve gone through all the proper avenues and gotten pre-approved for your mortgage, congrats! It can be a lot of hard work to get your finances in order, and lots of time spent on paperwork. So why would someone go through all of that, just to get declined afterwards? It’s hard to believe, but it happens to some people. The best policy is to be completely honest with your lender: if they go back and notice drastic changes to your finances, or that you’ve withheld serious information from them, they can decline your loan. Check out this post by Lolly Spindler at the House Hunt blog for tips on turning your pre-approval into a real mortgage:
-Disclose absolutely everything: past foreclosure, bankruptcy, short sale, drastic employment changes, alimony, child support payments, business losses. EVERYTHING.
-Don’t borrow the down payment: it should be your own money.
-Don’t make changes to your credit, or unexplained bank account deposits
-Always pay your taxes on time