Pre- Approval vs. Approval ?

Question

About a month ago we were pre approved. We made an offer on a house last week that was accepted. We have given them our money down, and signed a few things of paperwork. Our real estate agent said we will need to do a new loan application. He says nothing is gaurenteed in todays market. Our credit scores have remained the same, and we have not put anything on our credit cards, all are paid off. What are the chances that we won't be approved? This is so nerve racking. I feel like everything is just going so smoothly something is bound to fall out of place. Any help would be great, thanks!

Answer 1

if nothing has changed then you should still get the same approval

I am a loan officer in TN & KY

Answer 2

If nothing change in your finances and work- you should be fine. The difference between pre approval and approval is that the pre approval is only based on what you stated on your loan application. Actual approval require verification of those information like your bank info, your work history, appraisal report and such. I f your loan officer did good job with pre qualifying you - you should not worry. Good Luck!

Answer 3

If nothing is changed and the numbers were run right the first time, then you should be ok.  Make sure you put a financing contingency in all your contract in case (this says the contract is voided and you get your money back if you can't get the financing) but you should be ok.

Answer 4

you most likely did not apply for a loan, merely got a pre-approval letter, which states that given the current credit status and income history you meet the bank's requirements for a loan up to X amount.

Now that you have a property, you will actually begin the loan application process. (Banks will not give a loan without a sales contract, they need to appraise the property).

Most likely you will have no issues, as one month is a short time.

So go to the bank / mortgage broker, and start the loan process.

Answer 5

In all probability you were not pre approved for a mortgage, but pre qualified. There is a difference.

If you were pre approved you would not need to complete another application, but need to bring additional documents to complete your mortgage application.

Pre approved mean that you had submitted all your financial documents, showed proof of employment and other documents as necessary to complete your mortgage application.

Your information would have been submitted to a lender for approval, after which you would have been issued a pre approval letter on your mortgage broker's letterhead.

if nothing has change since you were last pre qualified then you should be ok and have no problems.  It will  take approximately 2-3 weeks.

Had you been pre approved you would be looking at approximately 2-3 days before getting your loan docs for signing.

Don't let the tediousness of the process get you down, just roll with the punches, eventually all will be done, you will be signing your loan docs and finally the keys to your new home.

There are things that will be required, but you have all that is needed, you just have to find it and present it to your mortgage broker.

  

I hope this has been of some use to you, good luck.

"FIGHT ON"