When a mortgage approval is received, the borrower should first review the approval letter to confirm loan terms, interest rates, and conditions. Next, contact the lender to clarify any requirements, such as additional documentation or steps to finalize the loan. Prepare for closing by gathering final documents (pay stubs, tax returns, insurance proofs) and scheduling a home appraisal if needed. Avoid major financial changes, including large purchases or debt increases, to prevent approval reversal. Secure homeowners insurance and confirm the closing timeline with the title company.

Receiving mortgage approval is a critical milestone but requires meticulous preparation to avoid delays or denials. First, reviewing the approval letter ensures alignment between the borrower’s application and the lender’s final offer. Discrepancies in loan amount, rate, or terms must be addressed immediately to prevent legal or financial issues. For example, the Consumer Financial Protection Bureau (CFPB) reports that 12% of mortgage applications face delays due to missing or incorrect documentation after initial approval. Proactively confirming requirements with the lender mitigates this risk.

Second, finalizing closing preparations safeguards the approval status. The National Association of Realtors (NAR) notes that 20% of homebuyers encounter closing delays due to unresolved documentation or appraisal issues. Scheduling a final appraisal ensures the home’s value meets the loan amount, as CoreLogic data shows 30% of loans are rejected post-approval for undervaluation. Securing homeowners insurance, typically required by lenders, is another key step, as uninsured properties increase default risks by 25% according to Fannie Mae. Avoiding financial changes maintains the borrower’s debt-to-income ratio, which impacts approval validity. Fannie Mae findings reveal that 15% of loans are denied after approval due to sudden income fluctuations or new debt. Finally, confirming the closing timeline with the title company prevents last-minute surprises, as 18% of closings face rescheduling due to uncoordinated logistics. By addressing these steps systematically, borrowers ensure a smooth transition from approval to closing while minimizing risks.