Most of them mean very little when you actually read them.
Look for paragraphs like these . . .
This pre-approval does not constitute final loan approval or commitment to rate, fees or terms. Final commitment is subject to Appraisal, Title and Final Underwriting Review, Validation and Approval. Any misrepresentation in the loan application or adverse change in financial position, employment or credit may void this pre-approval.
and / or
This pre-approval does not intend or purport to confer any rights or privileges upon any third parties including, but not limited to, sellers of real property, real estate brokers, or their agents. Final loan approval is subject to accepted underwriting guidelines for the loan program chosen which includes, but may not be limited to, re-verification of the information collected in the application and additional documentation as required by the lender, and is subject to satisfactory appraisal and title.
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What you do want to see is that their credit and income have been verified. Paragraphs like the ones above are usually included and basically mean that there is no guarantee at all that the loan will close!
Richard Shuman
American Mortgage
Florida Loans www.LowestFloridaRates.com
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