7 Must-Dos After Mortgage Pre-Approval: What to Do Next

1. Keep a Copy of Your Pre-Approval Letter

Your mortgage lender will send a copy of your mortgage loan pre-approval letter. Keep this letter in a safe place, both physically and digitally. If you decide to work with a real estate agent, this professional will request a copy of your letter immediately. Having this documentation ready proves that you are a serious buyer, ensuring you get the priority and attention you deserve while comparing mortgage offers and touring properties.

2. Include Pre-Approval Letter with Any Bids

Once you find a house you love, include a copy of your pre-approval letter with your formal contract or bid. If you do not include this letter, the seller may assume that you haven't been pre-approved for a mortgage loan and might choose another bidder in a competitive market.

When submitting a purchase offer, ensure your agent attaches the following essential items:

3. Compare Other Mortgage Offers

Being pre-approved by one lender doesn't mean that you can't shop around. Comparison shopping is one of the best ways to make sure you receive the lowest mortgage rate on a mortgage loan. These are no-obligation quotes, so you can request loan terms from different financial institutions without being tied to a single bank. Educational resources at MyCreditUnion.gov highlight how rate shopping improves long-term savings. Complete all your home loan applications within a concentrated 14 to 45 day window so credit bureaus treat all inquiries as a single credit pull.

4. Maintain a Good Credit Score

Even if you qualify for a mortgage loan today, any changes to your credit history before closing can impact your approval. Your lender will pull your credit again right before closing, so keep your credit in excellent shape. Continue to pay all bills on time and don't accumulate additional debt or open new credit lines. Remember that maintaining your credit score is just as critical as saving extra money for your down payment.

5. Keep Your Job

Quitting your job or making sudden career moves is one of the worst things you can do after getting pre-approved for a mortgage loan. Lenders require financial stability. Often, banks only approve your application if you have been with the same employer or in the same field for at least two consecutive years. Your mortgage loan isn't a done deal until you sign the final paperwork at closing. If you are considering changing occupations, decreasing your work hours, or becoming self-employed, wait until after you close on your mortgage loan.

6. Find a House within 60 to 90 Days

A mortgage loan pre-approval will expire after a certain number of months, depending on the bank. Typically, you have to buy a home within the next 60 to 90 days. If it takes longer to find a home, the lender may ask that you start the process over and complete another application.

Here is a quick overview of how your home buying journey should progress after pre-approval:

7. Save Your Money

You might already have funds set aside for a down payment and closing costs. However, continue to save money while you look for a home. Buying a house is costly and additional unexpected expenses frequently pop up during transaction processing. On average, you will need at least 5% for a down payment on a conventional mortgage, and between 2% and 5% for closing fees. You can review official housing guidelines on homebuyer assistance through the U.S. Department of Housing and Urban Development.

Be sure to budget extra funds for these common post-approval costs:

Buying a home is an exciting time, especially if you have been planning for years. Although a mortgage loan pre-approval says you are able to purchase, nothing is written in stone until you sign the documents at closing.

How did you prepare for your mortgage loan pre-approval?