Question:

Confused about preapproval responses I've seen on this board?

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I've read a lot of questions and a lot of responses about preapprovals and I'm concerned. I was pre approved for a home loan and waited for everything to go through the underwriter before receiving a pre approval letter. I was given a total amount as well as conditions about everything - my confusion comes from where I see people responding that this doesn't mean anything - I don't think that is true. My loan officer says I don't have to go through the underwriting process again am I missing something with what I've seen here that's different from what I've gone through?

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3 ANSWERS


  1. If your application has already gone through underwriting, you are WAY past a 'pre approval process'.  You ARE approved.  A pre-approval is nothing more than a lender taking information from you (without verification), and then advising whether or not you will qualify for a loan based upon the information provided.

    If the information provided is not accurate or complete, the actual approval may be denied.  Hence, the comments you see about pre approvals being relatively useless.


  2. Pre-QUALIFIED only means that without running the numbers you generally fall within certain perameters. Pre-APPROVED means they've looked at your particular details and you look pretty d**n good to them. However, you get FINAL approval mere days before your closing date.

    DON'T depend for definitive answers to serious questions here. We're just spitballing and shooting the sh_t around here. You should be talking to your broken and asking questions until you are clear.

  3. I got preapproved for a 250k loan back in the middle of march.  Found a house (for 220k) and signed the contract early april and house was finished being build june 27th....guess when i closed....Aug 8!!!!    Why did it take so long when i was preapproved?   One word...Appraisal.   That still has to go thru underwriters and they have to sign off on it and they are picky as h**l with the whole credit crisis.   Basically your pre-approval only means you can afford the loan you are about to get and there are still alot of things that can slow your loan down.

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