One of the first steps you should take when buying a house is getting preapproved for a loan through a lender. A preapproval will state that you meet the qualifications for a loan and the maximum amount you can borrow. Getting preapproved is an important step to take before shopping for a home, but it does not guarantee that your lender will actually approve the loan when all is said and done. Here are several issues that can cause a lender to deny a loan even after they have preapproved a person.

A decrease in credit score

Your preapproval is based on numerous factors, and one of these is your credit score. To qualify for a loan, the lender is likely to have standards in place with credit scores. For example, your lender might require your credit score to be at least 760 to qualify for a loan. If your credit score decreases from the time you get preapproved to the time when you want to buy a house and close on the loan, you may no longer qualify for the loan.

A rise in debt

A second thing your lender views when preapproving you is your debt load. If you increase the amount of debt you have after you get preapproved, you may no longer qualify for a loan. You should try to avoid racking up any new debt during this time, so that you will not jeopardize your chances of getting the loan when you need it.

A decrease in assets

Major changes in assets can also affect your ability to get a loan after you have been preapproved, and this primarily includes changes in cash. If you had $30,000 in the bank when you got preapproved and now have $10,000, the lender may tell you that you no longer qualify for a loan.

A change of job

Changes in employment can also jeopardize your ability to get a loan after you've been preapproved. The lender will not only verify your employment and income during the preapproval process, but they will also check on this before issuing you an actual loan. If you have changed jobs, you might experience problems getting a loan.

After you receive a preapproval from your lender, you should work hard to keep your financial state the same or better until you get the loan. To learn more, contact a lender today so you can learn more about this process.