Rather than declining the balance will actually increase. Lenders will use this ratio to qualify you for a loan. Principal, interest, taxes and insurance. The total monthly payment you make on a house. One percent of the loan amount.
Lenders charge points in exchange for lowering the interest rate.
When you are pre-approved, you have a commitment from a lender. Meeting or talking with a lender informally, providing the lender with your financial information, then having the lender pre-qualify you for a certain amount. When you are pre-qualified you are given an estimate, but not formally committed to a loan. The amount of money borrowed and still owed on a loan. Some loans require this type of insurance.