Can You Be Denied A Loan After Pre Approval?

Can You Be Denied A Loan After Pre Approval?

Even if you are pre-approved, your underwriting can still be denied.

Being pre-approved will make sure you have a good credit score, verify your income, and assure that you will be able to pay back the loan amount.

But again, pre-approval is only the first process to getting a loan.

Can you be denied a home loan after pre approval?

A few days after you submit an application, the lender should also provide you with a Good Faith Estimate. This document gives you an estimate of what your closing costs will be. But the pre-approval is not a guarantee. Therefore, it’s possible to be denied for a mortgage even after you’ve been pre-approved.

What happens after pre approval?

After you’re pre-qualified, your next step is to get pre-approved. This is an in-depth process. You’ll need to submit paperwork about your income, assets, employment history and residency status to a lender. Getting pre-approved is almost like applying for a real loan, but it happens before you select a home.

Photo in the article by “Wikipedia”