AFTER weeks of paperwork, credit checks, and income verification, receiving a mortgage pre-approval often feels like crossing the finishing line. However, a mortgage expert has cautioned that this sense of security can lead buyers to unknowingly make financial moves that end up costing them more or even putting their dream home out of reach.

Danique Service-Smikle, business relationship manager at JN Bank, explained that pre-approval reflects a lender’s initial confidence in a borrower’s financial standing.

“Pre-approval is the bank’s letter confirming that, after reviewing your income and current obligations, you’re in a position to qualify for mortgage financing up to a certain amount,” she said. “It allows you to negotiate. You can use it to approach a realtor or developer, and understand where you stand financially — that is, what you can afford and what your monthly payments are likely to look like over an extended term.”

Service-Smikle said the official loan terms can still change significantly before closing, and underwriters usually re-evaluate a buyer’s financial profile again during the final approval process. In light of this, she urged buyers to remain cautious and financially responsible once pre-approved.

She said even small changes in debt levels, employment status, or creditworthiness between pre-approval and closing can lead to last-minute changes in mortgage terms such as higher interest rates, reduced loan amounts, or added conditions. These shifts can delay the closing process or force buyers to rethink their homebuying plans.

“Let’s say you’re pre-approved for $30 million. This means we’ve assessed your income and liabilities and confirmed you can afford that amount. From that point on we encourage you to keep your spending in check. Avoid taking on new obligations, such as a car or business loan, because doing so increases your debt and could reduce what you qualify for — even making the home you thought you could afford unaffordable,” she stressed.

She said buyers should focus on reducing any existing debt and financial liabilities, pointing out that lowering debt strengthens a buyer’s financial profile and can also improve their debt-to-income ratio, which is a key factor lenders use to determine final mortgage terms.

Service-Smikle said while a stronger financial standing can help secure better interest rates and maximise the approved loan amount, it can also allow buyers to better prepare for the upfront and hidden costs of homeownership, including the deposit, closing fees, legal expenses, and moving costs.

“The mortgage process, unlike securing a personal loan, requires you to be in strong financial shape as there are several costs beyond the property price that you’ll likely need to finance, including essential services like surveyor and valuation reports,’ she said.

“Depending on the age of the home, additional costs such as engineer’s reports, plumbing and electrical inspections, and even renovations or fixture replacements may also be necessary — all of which can add up quickly. It’s important to make space in your budget for these potential expenses,” she added while noting that lenders, such as JN Bank, also offer convenient bundles and financing options to help cover both the upfront and hidden costs of homeownership.

Service-Smikle also stressed that clear communication with lenders is just as critical as financial discipline. She strongly advised buyers to check in with their loan officer and keep lenders informed before making any significant financial moves, such as changing jobs, receiving large monetary gifts, or making sizeable deposits. She said in many cases a quick conversation can prevent a simple mistake from turning into a serious setback.

“You don’t want to do anything that can lead to delays or trigger extra scrutiny. Keeping us informed allows us to advise you on how to structure your actions properly, ensuring your mortgage process stays on track.”