3 Issues that Can Cause a Pre-Approved Loan to be Declined

Thinking of purchasing a home in the near future? Understanding what a lender is looking for (and avoiding) is key to enjoying a smooth process.

Getting Pre-Approved

A preliminary step to buying a home is getting pre-approved. This process involves an initial submission of your financial picture to your loan officer to see if you initially qualify for financing and obtain an estimate of how much the lender is willing to lend you. Unfortunately, many people believe that once they have been pre-approved for a mortgage – the loan is guaranteed. Nothing could be further from reality. Your loan can be denied by the lender AFTER being pre-approved and it happens often.

Should You Pay Off Your Mortgage?

Few can truly describe the moment in which you are financially free.  Free from debt. Free from living paycheck to paycheck. Free from financial worry. Building a comfortable savings and eliminating debt is possible at any age with smart planning.

According to Forbes.com, it’s easy for people to answer questions like “Do you want to pay off debt?” or “Do you want to save money?” however, deciding whether to pay off your home mortgage becomes more complex. Often this stems from a commonly held belief that paying off your mortgage is impossible or strategically foolish. Let us point out that it is very possible to pay off your mortgage (and not just in a distant 30 years), and when over 75% of those on the Forbes 400 list advocate paying off your home as quickly as possible, it’s viable to look at the reasons why.