Special offer

Top Reasons a Mortgage can be Denied after Pre-Approval

By
Mortgage and Lending with ChangeMyRate.com® A Mortgage Corporation NMLS #1326269

When you’re ready to purchase a home, one of the first things you’ll need to do is get pre-approved for a mortgage. A pre-approval letter is critical, especially in a competitive market, because it shows sellers, you’re serious about buying a home and that you have the financial means to do it.

While having a pre-approval will make you more competitive, it’s important to remember that it’s not a guarantee you’ll receive financing. During the application process, your lender will examine certain factors like your credit score, income, employment, debts, and assets. If any of these criteria change between pre-approval and closing, your loan could be in jeopardy. Here are a few reasons why that might happen.

A negative hit on your credit

You don’t need perfect credit to obtain a pre-approval, but you will need to meet your mortgage credit requirements as well as credit guidelines set by your lender. Because of this, it’s important that a buyer has a solid understanding of how credit scores impact mortgages.

To learn more about the top reasons a mortgage can be denied after pre-approval and the home buying process, visit the SCOOP! Blog

Comments (1)

Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Oct 08, 2021 01:48 AM
Jackie A. Graves

Hi Richard, thank you for your comment. Stay posted for future blogs and make it a great day. 

Oct 09, 2021 02:42 PM