Pre-approved Loan: Pre-approval means you should be able to get the loan as long as nothing changes about your financial situation or your credit score. A pre-approval letter helps when you want to compete with another buyer for a home you like.
Pre-approval Loan affect financial position: Pre-approval is based on the information given at the time of your application. Any changes, like getting a different job or taking out a car loan and the other loans, can result in rejection of the loan request when you go to purchase a house. Example:
- Buy a big-ticket item: a car, an expensive piece of furniture etc.
- Quit or switch your job
- Open or close any lines of credit
- Pay bills late
- Ignore questions from your lender or broker
- Let someone run a credit check on you
- Make large deposits to your accounts outside of your paycheck
- Cosign a loan with anyone
- Change bank accounts
- Take out any payday loans