Pre-Approved for Home Loan?
Okay here is the deal. I was pre-approved for a loan a couple of weeks ago. After I was pre-approved I found a house less than a week later! Filled out the loan application that will go to the bank financing my future home (hopefully, if the bank approves).
Now, the time between my pre-approval & my loan application I've had to use two credit cards. Between the two credit cards there is about $600 difference on my current balance compared to what was on my loan application. But since then I've also made a car payment.
My question; will the fact that I had to use a couple of credit cards screw up my loan application with the bank?
Thank you for your response. That is the problem though ... I think anyways. Since the application was sent in I have just added about $600.00 more to my credit card :(
- ElizabethLv 44 years ago
Getting pre approved for a home loan just lets you know how much the bank is willing to let you borrow to buy the home. It lets you know what price range of home you can look at. Next, once you pick the home, the home must meet certain standards and be acceptable as the collateral for the loan the bank is about to give you. The loan can't be approved if the house is not acceptable and without an appraisal and an inspection, there is no way to know if the house will pass. It actually helps protect you from things you may not have noticed while looking at the home. Bad foundations and termite damage aren't always obvious to the untrained eye, but the inspector will catch things like that and save you and the bank a big headache later on. And the appraiser helps certify that the home is actually valued at what the seller is asking. The appraiser doesn't just look at the house you are purchasing, they rate the over all neighborhood and the value of the homes near your home. It is true that a bad home, or a home left uncared for can make the value of the homes around it go down. An appraiser would catch issues like that. If the appraiser found the value of the home to be less than the asking price, you could use that to try to purchase the home at the lower price, and maybe get the house you want for less than what you think you are going to have to pay right now. There is always a slight risk of being denied because of a problem with the home, but most of the time, the seller has usually done the right steps to make sure their home can sell, especially if they are using a realtor. After all, they want out of the home because it isn't right for them anymore, so they want it to pass these inspections.
- Anonymous1 decade ago
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- 1 decade ago
As long the balance comes out at the end of the month you should be ok. They just dont want you to be more in debt during the application process.
- Anonymous1 decade ago
It shouldn't screw up the application but they may possibly ask you to pay off that credit debt before they give you the loan if it affects debt ratios.
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- Anonymous6 years ago
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