What can void a pre-approval (and how to avoid it)
Your letter is conditional. New debt, income changes, unsourced funds, or score hits can derail it. Here’s what trips buyers up—and the fast fixes to stay offer-ready.
Credit changes
- Late payments after pre-approval
- Score drop from high utilization or new inquiries
- New collections or derogatory items
Keep utilization low, pay on time, and avoid new accounts until you close.
Income & employment changes
- Job switch without a signed offer/transfer letter
- Reduced hours/variable pay dropping year-to-date averages
- Switching to 1099/self-employed mid-process
Tell your loan officer immediately if anything changes—often they can re-structure the file before it derails.
Assets & unsourced deposits
- Large deposits without a paper trail
- Cash deposits that can’t be verified
- Moving funds between accounts late in the process
Document gifts, asset sales, and transfers. See source-of-funds paper trails for exactly what to provide.
New debt & DTI shifts
- New car/furniture financing before closing
- BNPL or personal loans that add monthly liabilities
- Big balance increases on existing cards
Your back-end DTI must still meet the program cap. Run changes through the Mortgage Payment Calculator before you commit.
Disputes, freezes & fraud alerts
- Active disputes on tradelines can block underwriting
- Credit freezes you forget to lift for re-pulls
- Fraud alerts causing verification delays
Lift freezes during your application/refresh window, then re-freeze if you prefer.
Property/contract issues (once under contract)
- Low appraisal that pushes LTV/MI or cash to close out of range
- Title issues or insurance ineligibility
- Condo/HOA problems (budget/reserves or litigation)
If it happens: quick fixes
Credit/utilization spike
- Pay down balances; request rapid rescore (lender-initiated)
- Provide proof of payment/updated statements
Unsourced deposits
- Provide statements from both sides of the transfer
- Gift letter + donor evidence if gift funds
- Trade confirms for stock/crypto liquidations
Income/job change
- Upload signed offer letter; confirm start date & comp
- Discuss program switch (e.g., FHA vs Conventional)
DTI too high
- Lower price/loan amount or increase down payment
- Ask about lender credits or rate options
Stay offer-ready checklist
- Upload native PDFs (all pages) and refresh pay stubs/statements monthly
- No new credit; keep utilization low
- Consolidate funds early; keep a clear paper trail
- Tell your LO about any changes immediately
Disclaimer: Educational info, not financial advice. Program requirements vary by lender, loan type, and state.