Why Your Pre-Approval Isn't a Guarantee (And What to Do About It)

Getting pre-approved for a mortgage feels like crossing a major finish line. The bank looked at your income, your debts, your credit score, and your down payment, and they said yes. You have a number. You know what you can spend. You're ready to buy.

Except a pre-approval is not a mortgage. It's closer to a conditional handshake — the lender is telling you that based on the information you've provided, they're likely to lend you money for a home purchase up to a certain amount. The word "likely" is doing a lot of work in that sentence.

Understanding what a pre-approval actually is — and what can cause it to fall apart — is one of the most important things a buyer can know…

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