getting a loan

If they ran your credit and you completed a full app then they pre-qualified you based on those things and usually when a lender does that they feel pretty confident that you will indeed qualify for the loan. That said, you can be disqualified during the underwriting process if the underwriter finds something wrong and that can be for a variety of different reasons.

Basically there are three types of approvals. Pre-Qualified, Pre-Approved and Final (or Fully) Approved. Until your loan is Funded, it can still be declined. Typically the process is as follows: A Pre-Qualification means that you have provided a full application to your Loan Officer, complete with supporting documentation such as paystubs, bank statements tax returns, etc. The Loan Officer has reviewed the numbers and in most cases run your application through the Automated Underwriting System to see if you qualify. A Pre-approval means that in addition to being pre-qualified, we have been able to validate that the tax information you provided us matches what you actually provided the IRS. We have verified through alternative methods that you actually are employed where you say you are and make what you say you make. Final Approval is when the Underwriter signs off on the package and all of the supporting documentation. That is when loan documents are prepared for signing. Even then, until the loan is funded, it can be cancelled by the lender. I am aware of more than one situation where after loan documents were prepared and sent to escrow, but before the loan was funded the borrower quit or lost their job. Since they no longer had sufficient income, the loan was declined. In another case between signing and funding the borrowers went out and bought a pair of $30,000 cars. The new payments on the cars when added to their existing debt load meant they no longer qualified and the loan was declined. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

A pre approval is issued by your loan officer is not a loan commitment.. what it menas is that the lender has reviewed your application, credit, and supporting doucmentation, and base on his experience, has made a determination that you will "most likely" qualify.. until the entire loan packet is gathered, processed, and underwritten, you wont know for sure if your fully approved. I wish i could tell you what to expect in your process, but unfortunately, in today's very complex lending environment, just about anything can happen where the lender will deny your loan. And because of the time and resources involved in underwriting, most lenders will not do a full up underwritten pre approval... there is just too much time involved for the realtors, loan officers, processors etc.. to just throw out a pre approval on someone who your not sure can qualify, so if your lender has issued a pre approval, he's confident he can get your loan handled..

You are more than likely good to go. However there is always a chance that something could come up in the loan under writing process. More than likely your pre approval means that the loan officer has your credit income and assets ran thru their automated underwriting system.

A pre approval usually means you are likely to be approved, however, there are always problems that can arise.