May 07, 2021
Although going through the pre-approval process is more important than ever, pre-approvals are often misleading. Here's why you should have the condition "subject to financing" included on your offer to purchase.
- A lender must review all related documents, not just your documents but also those from the appraiser and the realtor.
- Although your mortgage broker will review your documents, very few lenders will review documents until there is an accepted offer in place.
- The property itself must meet specific standards and guidelines.
- Anything can change with your finances between the initial pre-approval and the time you make an offer on a home. For example, the job you have today may not be the job you have by the time you write your offer.
A pre-approval provides you with a clear understanding of the maximum mortgage amount you qualify for, based on your financial picture today. When you make an offer on a house, ensure you include the condition "subject to financing."