3. Taking Out Another Loan or Making a Large Purchase
Somewhat similar to point number one, taking out another loan (for example, to purchase a vehicle) while in the pre-approval process can raise red flags for your lender when they check your credit at closing time. By making such a large purchase you have placed yourself in a higher risk group, and therefore the terms of your pre-approval are not valid anymore. Remember, too, to keep any savings you have where they are while negotiating your mortgage. Banks also check your accounts, and will take note of a large sum missing from your reserves.
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