We’ve all heard the horror stories of issues getting to the closing table. Lenders are asking for documents already received, multiple contract extensions, and even worse, loan denials in the 11th hour. We cringe when we hear these stories, not just because they are horrible, but because it was completely avoidable.
If you’re wondering what causes this much difficulty, we can answer that. The answer is easy; you were pre-qualified, not fully approved.
Pre-qualifications are most famously provided by banks, large online lenders, and lazy mortgage brokers. Typically, they’ll pull your credit and ask you a few questions about your income. Then, they’ll say, “Great; you’re pre-qualified for a purchase price up to 250k; I’ll go ahead and send a letter to your realtor.”