By Dan Piercy / Mortgage specialist
Pre-Approved for Your Mortgage… What Does that Really Mean?
There is a myth out there that once you’re pre-approved for a mortgage, you’re good to go out and buy a home… with a no subject offer… DON’T do it!
A pre-approval means that based on being able to PROVE (through documentation) your CURRENT income, expenses, down payment and credit bureau you SHOULD be able to get fully approved once you find the right property (this is the first half of the equation).
Remember that there cannot be any major changes to your mortgage application details prior to the completion of their purchase as it may affect your qualifications and change the conditions of the approval.
I always recommend my clients put in a “subject to financing” clause with their realtor when they are putting in an offer to protect themselves.
If you have a “subject to financing” clause in your purchase agreement, and you can’t find a lender (for whatever reason), then you can back out of the deal with no financial repercussions