Credit Card Center Advertiser Disclosure†
12-03-2012 07:48 PM
Conditions are usually when underwriter send you loan approval (not preapproval) you don't have keys yet hold your emotions for now
^^^^Exactly right. The pre-approval is very, very preliminary. The conditions come after you are under contract, been through processing and underwriting and just before closing. If you submitted all of your documentation (tax returns, pay stubs, W-2's, etc) than you can get a little excited because you would have a strong pre-approval. Good luck in your search for your new home. Remember - have fun!
12-03-2012 08:09 PM
12-03-2012 08:26 PM
your pre-approval is as strong as your loan officer.
did they see bank statements?
pre-approval is a basic approval based on loan application and a few income/asset docs.
anything can happen when EVERYTHING is scrutinized.
example: you are salaried/w-2 employee and bank statements look cool.... BUT!!!! we pull tax returns and you have a side business and write off $20K/yr in expenses.... hmmmm.... LOOK OUT!!!.... Stuff just got crazy
12-03-2012 08:30 PM
12-03-2012 08:49 PM
Your process sounds a lot like ours that we are going through right now.
Though it's a pre-approval, it's technically an approval from what the loan officer told us. It's for a new build, so they basically have to fully approve you now (meaning taxes, paystubs, bank statements, etc) and you are considered "approved" per the loan officer. Then they give the go ahead to build the house, and when it's time to close in 6-7 months, they just need updated docs as some of them (all of them?) expire. But as long as nothing changes between the approval now and the close, it should be good to go.
We submitted all of our docs a little over 2 weeks ago, hoping to know something by this time next week.
12-03-2012 08:51 PM
12-03-2012 08:56 PM
Wow they built before you were approved? Our builder isn't starting any construction until we have full approval.
What would of happened if you didn't get approved? Was the earnest deposit (assuming you put down a deposit) still refundable since they already built the house?