When you decide to buy a house, your real estate agent will tell you to visit a lender to get preapproved before viewing houses. Once you do this, you might think that you will have no problems getting a mortgage to buy a house. After all, the lender preapproved your loan. While you might have no trouble getting the loan, you could also experience challenges. Here are four factors that might impede your ability to get a home loan after getting preapproved.
1. Your Credit Changes for the Worse
When a lender preapproves a loan for you, they base the decision on many factors, including your credit. If your credit score drops by the time that you need the home loan, the lender might decline to issue you one. Your lender will run your credit score multiple times throughout the process, including the day before you close on a house purchase. If your score worsens, it could stop you from qualifying for a home loan.
2. You Do Not Have Enough Money for the Down Payment
If you spent a lot of money out of your savings account after getting preapproved, you might not qualify for a home loan anymore. The lender based the preapproval on this factor, too. If it changes for the worse, you might lose your eligibility to get a home loan. To avoid this, do not spend the money you have in your savings account during this time.
3. You Switched Jobs
Switching jobs might also lead to problems getting a home loan after a preapproval. The lender also bases the preapproval decision on your job. Most lenders look for a two-year job history, as this shows steady, reliable income. If you get a new job, even if it pays more, it could jeopardize your chances of qualifying for a home loan.
4. The Home Appraisal Is Too Low
The other factor that can affect this is the home appraisal. The lender will not offer your loan until they determine the value of the home you want to buy. If the appraisal amount is too low, the lender's risks might be too high, and they might decline to give you the loan.
After getting preapproved, you will need to protect your credit and finances if you want to get a home loan. To learn more about applying for a home loan, contact a lender of your choice.