Almost 1 in 3 borrowers who applied for a mortgage in 2008 was denied, the government reported last week. 

The Federal Reserve said the denial rate for all home loans was 32%, clear evidence lenders are keeping their standards tight.

Current home shoppers and home owners looking to refinance pay close attention.  Mortgage pre-approval is a necessity!  Don't gamble by skipping this step.  Loan turndowns may be the result.

A true pre-approval requires initial verification of assets, credit and income.  Automated underwriting findings can then be obtained.  The pre-approval is contingent upon final review of assets, credit and income, but if everything is verified and documented correctly the initial pre-approval is gold. 

So, take extra time and effort on the front end.  Provide your lender with the last 2 years W-2's ( tax returns if self employed ), most recent paystubs and a 60 day bank statement.  Also, thoroughly review and accurately complete the loan application. 

Errors on the application are a big source of loan turndowns.  If some of the loan application details can not be verified a turndown may result. 

Properly executed pre-approvals will identify potential problems before they arise in final underwriting.  This will give you and your lender plenty of time to overcome them and move forward to closing.

Don't be the 1 in 3 who gets a loan denied.