TIL that getting pre-approved doesn't mean you're actually approved

Went to an open house in Phoenix last weekend and found a perfect little 3BR for $285k. Put in an offer with my pre-approval letter from my credit union, feeling good. Seller accepted! Then my lender called and said they need more docs, turns out the pre-approval was just based on what I told them, not what they verified. Had to scramble to dig up two years of tax returns and bank statements. Has anyone else gotten burned by thinking a pre-approval letter was the final word?

2 comments

2 Comments

kimr918d ago

Pre-approval letters are basically worthless. Pre-underwriting is the only way to know you're actually good.

sandra_moore308d ago

Read an article recently that broke down how many pre-approvals fall through because the lender didn't actually check all the documents. Pre-underwriting is definitely the smarter move since they look at your tax returns, bank statements, and pay stubs upfront. Too many people get a pre-approval letter and think they're golden, then get blindsided at closing. Real estate agents I've talked to say pre-underwritten buyers are way more likely to close on time too. Sellers and listing agents know the difference and take those offers more seriously these days.