Protect Your Preapproval!

The agressive holiday push started by retailers before Thanksgiving and hasn't let up yet!  If you are trying to buy a home and have a preapproval, you want to keep a few things in mind as you prepare for the holidays! Retailers want you to spend and so keep an eye on your spending!

There is always a suggestion to open store credit cards when you are shopping, avoid that if at all possible.  Lenders will look for new inquiries right before closing on your new home and any new debt could affect your loan approval.  If there are inquiries, you will have to explain them and if there is new debt, we need to update everything. 

Remember you need to have money for your down payment, if you spend it all, you won't be able to buy a new home.  Set a budget for your holiday spending and try to keep it.  Make sure you have the money you need for a down payment – maybe keep it in a separate savings account so you can't get to it.

If you get money as a gift from someone over the holidays, keep a copy of the check so you can explain where the money came from.  If your lender sees large deposits, they will want to know where that money came from and if you have a copy of the check, it's much easier to explain!

Try to limit how much you put on your credit cards.  If your balances increase too much, it can affect your loan approval.  Along with new inquiries, lenders also look for increases in your credit.  So if you spend a lot over the holidays, it could increase your monthly payments on your credit cards and that may affect your loan approval.

I hope you have a wonderful holiday season and if you have any questions about your mortgage, please feel free to call or email!  Enjoy the season!

Leslie Vanderwerf,  NMLS ID#335509, American Mortgage & Equity Consultants – EmailWebsite


Written By

Currently a Senior Loan Officer at Cross Country Mortgage LLC, it's hard to believe I have been in the mortgage business for more than 25 years and have worked with Sharlene since 2000! I love sharing mortgage insights here each week and helping people finance their homes. Listening helps me find the right program for you!

Related Posts

4 Home Binder Printables for Any Stage of Homeownership, and How to Set up the Binder

GUEST POST: from Rachel Perez for HomeAdvisor powered by Angi Owning a home is something that many people dream of, but being a homeowner is no easy task. From basic...

How to save for a down payment…

You have decided you want to buy a new home but you do not have enough money saved up. What now? Here are some suggestions to help you save money,...

Subscribe to Our Newsletter for Market Updates & Mid-Century Modern Listings

Our weekly HomesMSP Update includes current local market information and a curated list of mid-century modern properties for sale, plus posts from an inspector, a lender, a stager, info about neighborhoods, life in the Twin Cities… even recipes!

Blog Categories


Sharon and John Hensrud

About Us

The HomesMSP Team is committed to meeting you where you are and listening… really listening to understand you so we can use our extensive knowledge of the market and local neighborhoods to give you personalized service.