A Pre-qualification For Your Mortgage Is NO Guarantee…

I have clients that tell me all the time, “I’ve been pre-approved for this loan, why is it taking so long?” In the world of real estate mortgages, pre-qualifications don’t mean much.

A pre-qualification just means that the lender has done very preliminary research on you and your income and credit to determine whether you “qualify” for the mortgage. It is not a guarantee that you will get the loan by any means. It just means that all the ingredients you need for the loan “may” be there.

Getting a mortgage loan requires a lot more than simply filling out an application and having your lender run your credit. They do quite a bit of due diligence to make sure you, your job, and any other income you have is going to be financially stable enough to sustain you and your mortgage payments. You will have to provide bank statements, tax returns, W-2’s and a slew of other information before they decide on your final qualifications.

Don’t be fooled by the terminology “pre-qualified.” Make sure you are giving your lender all of the information that they need in a timely manner, and that you are answering truthfully all of the questions they ask you about your employment.

And lastly, DO NOT make any large purchases, open up new credit cards or loans, or do anything else that may have an impact on your credit or financial situation. It may sink your ability to get the mortgage.