4 Ways to Lose Your Mortgage Preapproval

Avoid These Common Mistakes to Protect Your Loan

Getting preapproved for a mortgage is a major milestone when buying a home. It gives you a clear picture of what you can afford and shows sellers you’re serious. However, preapproval isn’t a guarantee, and it can be revoked if you make certain mistakes along the way. Some of these errors may seem basic, but at Innovative Mortgage Brokers, we see these issues happening all the time. So, let’s break down four common mistakes that can cost you your preapproval—and how you can avoid them.

Changing Jobs or Employment Types

Why It’s a Mistake:

Lenders are all about stability when it comes to approving loans. If you switch jobs or change employment types (for example, going from salaried to commission-based or self-employed), it can raise concerns for the lender. Even if your new job pays more, lenders want to see consistent income over time, and a sudden change can put your preapproval at risk.

How to Avoid It:

The best way to avoid issues here is to hold off on any job changes until after your mortgage has closed. If changing jobs is unavoidable, make sure it’s in the same field and pays at least as much, if not more. Always notify your loan officer immediately about any employment changes. Being upfront and transparent can help minimize any disruptions to your preapproval process.

Taking on New Debt

Why It’s a Mistake:

One of the main factors lenders use to determine your preapproval amount is your debt-to-income (DTI) ratio. Taking on new debt—whether through financing a car, opening a new credit card, or co-signing a loan—will increase your DTI. Even if your income remains the same, this added debt could push your ratio above the acceptable limit and put your preapproval at risk.

How to Avoid It:

Avoid making any large purchases or taking on new debt while going through the mortgage process. This includes buying furniture, cars, or anything else on credit. If you have to make a big purchase, consider paying in cash or waiting until after closing. Also, always keep your lender informed of any financial changes during the process.

Missing Payments

Why It’s a Mistake:

Your credit score plays a significant role in mortgage preapproval. If you miss a payment on an existing loan, credit card, or other bill, it can lower your credit score quickly. Lenders see missed payments as a sign of financial instability, and this can lead to your preapproval being revoked or significantly altered.

How to Avoid It:

Set up automatic payments for all your bills to ensure you never miss a due date. If you run into financial trouble, reach out to your loan officer as soon as possible to discuss your options. Staying on top of payments is crucial for maintaining a good credit score and keeping your preapproval intact.

Not Being Honest with the Loan Officer

Why It’s a Mistake:

It’s tempting to leave out certain details when talking to your loan officer, especially if you think it might hurt your chances of getting preapproved. However, honesty is key. Lenders will verify the information you provide, and any discrepancies—such as hidden debts or inconsistent income—could result in your preapproval being revoked.

How to Avoid It:

Be upfront and honest with your loan officer about your financial situation. Don’t try to hide any debts or gloss over income inconsistencies. If any issues arise, it’s better to address them early so your loan officer can help you find a solution. Transparency builds trust and helps the lender give you the best possible mortgage solution.

Why These Seemingly Basic Mistakes Happen Often

At Innovative Mortgage Brokers, we see these mistakes time and time again. Even though they may seem simple to avoid, they can easily slip through the cracks during the excitement and busyness of buying a home. Whether it’s a last-minute job change or forgetting to pay a bill, small errors can lead to big issues when it comes to mortgage preapproval. That’s why it’s essential to stay informed, be cautious, and keep open lines of communication with your loan officer throughout the process.

Often Question Asked; How Long Is a Preapproval Good For?

A common question we get from clients is, “How long is my preapproval good for?” The answer we always give is simple: your preapproval is good as long as nothing changes with your financial situation. While some lenders may say their preapprovals are valid for 30, 60, or even 90 days, it’s important to understand that this timeframe is only valid if there are no significant changes to your employment, credit, or debt.

For example, if you change jobs, take on new debt, or miss a payment—even tomorrow—those changes can void your preapproval, regardless of how much time is left. Your lender will need to reassess your financial standing to ensure that you still qualify for the loan based on these new factors.

That’s why it’s so important to keep your financial situation stable during the entire homebuying process. By avoiding big changes, you ensure your preapproval remains valid and that the process continues smoothly. If you do anticipate any major changes, reach out to your loan officer immediately, and they can guide you on the best course of action.

About Us

At Innovative Mortgage Brokers, our mission is to simplify the mortgage process and provide personalized solutions that meet the unique needs of each client. With over 15 years of experience in the mortgage industry, we understand that buying a home is one of the most significant decisions you’ll ever make. That’s why we’re dedicated to offering expert guidance, competitive rates, and transparent service to help you navigate the complexities of home financing.

We work with a wide range of lenders, giving us access to a variety of loan products, including conventional, FHA, VA, USDA, Jumbo, DSCR, and  Non-QM loans, so we can tailor our solutions to fit your specific goals. Whether you’re a first-time homebuyer, refinancing an existing mortgage, or looking to invest in property, we are here to support you every step of the way.

Serving clients in Pennsylvania and Florida, we pride ourselves on being more than just a mortgage broker—we’re your trusted partner in achieving homeownership. Our goal is to build lasting relationships by providing a seamless, efficient mortgage experience with low rates. Let us help make your dream of homeownership a reality!

Conclusion: Protecting Your Preapproval

Getting preapproved is a great step in your homebuying process, but it’s important to protect that preapproval until you close on your home. By avoiding common mistakes like changing jobs, taking on new debt, missing payments, and not being fully honest with your loan officer, you can maintain your preapproval status and move smoothly toward purchasing your dream home.

At Innovative Mortgage Brokers, we guide you through every step of the mortgage process. If you have questions or concerns about maintaining your preapproval, feel free to reach out—we’re here to help you navigate the path to homeownership with confidence!