If you’re thinking about buying a house soon, it’s important to hold off on any major financial changes.

The reason? Once you’re pre-approved*, you want to keep your finances in good shape. You can avoid any issues by adhering to a few dos and don’ts.

DOs:

• DO continue making your rent or mortgage payments.
• DO keep paying your bills on time.
• DO continue to use your credit as normal.
• DO keep your same insurance companies and bank accounts.
• DO let your Loan Officer know if you’ll be receiving gift money before it’s deposited into your account.
• DO talk to your Loan Officer about any potential job changes or other issues that might come up.

DON’Ts:

• DON’T change jobs, if possible.
• DON’T make any major purchases (car, furniture, jewelry, etc.).
• DON’T move money between accounts or make any large cash deposits.
• DON’T open any new lines of credit, including store credit cards.
• DON’T close any credit card accounts or consolidate your debt onto one or two credit cards.
• DON’T have your credit pulled or dispute any information on your credit report.

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Being mindful of these dos and don’ts when buying a house can help expedite your mortgage approval and prevent unnecessary delays. But what else is needed for full loan approval?

Here are a few factors that your Academy Loan Officer will look at when approving your mortgage application:

• Your collateral. The property being purchased is the collateral for your loan. The value, marketability, and condition of the property—as detailed in the appraisal report—are extremely important.
• Your credit history. An underwriter will look closely at your credit report, past payment record, and any consistent patterns of late payments, collections, etc., as these can reflect your likelihood to pay your loan on time.
• Your ability to repay. To determine if you’re able to repay your loan, an underwriter considers your gross income, debt-to-income (DTI) ratio, job stability, and assets. Different loan programs can require different DTI ratios, making some loans easier to qualify for.

Keep in mind that: Academy Mortgage evaluates each loan application on a case-by-case basis. Many applications may come up short in one area but make up for it in another. Compensating factors might include a large down payment or overall financial health.

Wondering what your monthly payment would be on a home in your pre-approved* price range? You can use the calculators on Academy’s My Mortgage app to get an estimate. You can also use the calculators in the app to get down payment estimates for different loan amounts.