When it’s time to purchase a home, one of the first things you should do is get pre-approved for a home loan. In this highly competitive market, mortgage pre-approval is “the ace up your sleeve” because it emphasizes that you are serious about buying a home and have the finances to back you up.
While having a pre-approval letter gives you an advantage at the negotiating table, it’s not a guarantee that you’ll close the loan.
That said, it may surprise you to learn that lenders may turn you down for a loan even if you get pre-approved. Let’s look at some of the reasons why this may happen and how to prevent it.