801-532-4305

Pre-Approved

...OR MAYBE NOT   

Recently I had a buyer who was pre-approved by a major bank and was house shopping. He and his wife found a home they loved and paid for a home inspection and appraisal. Shortly after this, they received a phone call from that bank stating that they were not able to use his wife’s income for qualifying and their loan was no longer approved. He had a pre-approval from the lender just a few weeks ago and thought everything was fine. This is an extremely difficult situation for anyone to be in. Unfortunately, this situation happens by design. You see most lenders don’t want to have an underwriter spend time reviewing things until they can confirm they have a serious home buyer. What does that mean for the home buyer? That means that you don’t technically have an approval until after you have found the home, after you have paid a deposit, and most likely after paying for appraisals, inspections, etc.

Watch this before you get a pre-approval!

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Pre-Approval vs Full Approval

 

 

Contact Us



Frontline Financial, LLC

2180 S 1300 E, Suite 590
Salt Lake City, Utah 84106

Phone: 801-532-2553

Fax: 801-532-1495

NMLS: 132166

FrontLine Financial

Licensed by the Virginia State Corporation Commission MC-2577

Verify Frontline Financial LLC (NMLS# 132166 CA, FL, UT, VA) with the Nationwide Mortgage Licensing System & Registry Consumer Access.

*total finance charges may be higher over the life of the loan