Is a real estate transaction really approved with a Preapproval?

Increased Tucson Real Estate Activity in the Market

Recently we have seen an increased amount of activity in the Tucson Real Estate Market but we have also had a higher experience of getting a preapproval for a Buyer, to only learn when it gets to an underwriter, that the loan has been turned down.

This brings up two questions, is a Preapproval really valid, given  that all the facts are supoosed to be taken into consideration , or are the Underwriters being so particular, they are shutting out many new buyers that are now coming out to buy with great interest rates and more home choices in the Tucson Real Estate Market.

One of my recent buyers has a very high FICO score and is a traveling nurse, but it seems that although she was originally approved with 10%, they are now even giving her a hard time for an FHA loan because of many changes in employment over the last two years. This is what she does for work, and is continually employed.......for example, could this not have been pointed out over a month ago if it were gong to be a problem?

As a real estate professional and a Realtor, I always make sure that my clients are Preapproved for a loan before I show them homes for several reasons. They are comfortable and know the pricing and mortgage payment that they will be able to afford, and I know what price range to search for homes for them.

If we see a home that my clients like, then we already have a Loan Preapproval to make an offer which is a requirement of our Arizona Contract.

I am perfectly OK with having a 10 day inspection period, and finding out if there will be preliminary challenges going forward once the file has been initially reviewed, but to learn that there is a problem on or after the closing date, is not acceptable for a Buyer or those other professionals involved in the transaction.

I know that if I had the opportunity,then Mike Jones would cetainly not have given this level of service!

If anyone here has experiences a similar experience feel free to contact me.

Anne and Eddie McKechnie

Realtors Consultants

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