Preapprovals Less Reliable

Mortgage preapprovals became more important to home sellers in the weak market, but experts say they also have become less reliable. Although preapprovals are better than prequalifications in that they take the borrowers’ credit history into consideration, until there is an approval, the property value and mortgage rate are preliminary. Additionally, lenders often spend more time verifying the borrower’s income and assets when it comes time for an approval. Self-employed borrowers, in particular, are encouraged to delay putting down earnest money until all documents have been reviewed and accepted as part of an approval. | Read More