Simply stated, you cannot be "pre-approved" for a mortgage and being "pre-approved" does not ensure that you will be able to obtain a mortgage. Mortgage brokers and financial institutions use "pre-approval" as a marketing device.
Typical, pre-approval comes into play when a potential homebuyer visits a financial institution to see if they can qualify to purchase a home. The potential homebuyer is told they have been pre-approved, then enters into a contract to buy a home. The financial institution then looks at the potential buyer's credit history and employment; then endorses the loan.
However, the financial intuition can still turn the potential buyer down for a mortgage. Financial institutions use various reasons to turn down a mortgage where the potential buyers were pre-approved; such as the potential buyers failed to fulfill their obligations of the underwriting process or by simply stating the pre-approval was for a limited period of time.
In other words, a mortgage is not guaranteed until sitting at closing and the check from the financial intuition is given to the seller. Schemes such as being told you are "pre-approved" for a mortgage may be a sign of predatory lending, so be aware. If you are facing a Florida Foreclosure Lawsuit and you feel that you have been the victim of predatory lending, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today.
