Do You Really Have a Pre-Approval
In light of misinformation we see being given from time to time we want to shed some light on the issue of pre approvals. We have met with many homebuyers who come to us after visiting the bank. They will tell us they had a pre-approval but when they went to purchase a home they were somehow no longer approved. We see this far too often and it is very difficult on the homebuyers and everyone else involved.
If you visited a bank or other mortgage professional and filled in an application but did not provide any documentation to verify income or personal information then the integrity of your pre-approval has to come in to question. The reason for this is because determining a homebuyer’s personal information is not always so simple. There are many rules we have to follow when qualifying a homebuyer and we don’t expect homebuyers to know all of these rules. For example what someone claims to earn in income is not always the same number we are allowed to use in qualifying. Different rules apply for different situations as far as what we can use to qualify. For this reason on any pre approval we always review documentation, especially income documentation. We want to ensure your pre- approval has a solid foundation and you don’t get any surprises after the fact!
A pre-approval is only meant to provide homebuyers with a good idea of what they can qualify for. Once you have an accepted offer on a home then we seek out a formal approval with the chosen lender. For any questions please give us a call at 403-347-0774