When searching for a new home, you can get pre – approved for credit bank mortgage. A pre – approval is a promise to the lender to grant you the credit based on the information you provide them on request. However, this pre – approval is subject to certain requirements you must meet to obtain the loan.
Verification of income
When you complete the application for a new loan, you need to publicize your annual income. Some lenders will ask you to verify your income before pre-approved offer. However, other lenders can provide pre-approval that is subject to income verification. If you lose income or cannot provide satisfactory documentation of your income before closing, the lender will deny your mortgage application. If you are self-employed, the lender may deny your request if you find that your tax returns show less income you reported.
You must provide the evidence lender employment when you apply for a loan. Most lenders verify that you meet employee before offering pre – approved and 30 days before closing. If you lose your job before the second employment verification, the lender will deny your request. If you are self – employed, the lender may deny your request if you find that your business has failed since preapproval.
Evaluation and inspection
Most pre approvals are subject to an assessment of the home you want to purchase. The house can also be inspected. If a lender pre-approves the purchase of a given household and home does not pass inspection, the lender will deny you the mortgage. You can also deny the mortgage if the house is valued at less than the purchase price.
Unshared or inaccurate information
Lenders offer pre approvals based on information that you submit in your application. If the lender later discovers that have liabilities or debts that you did not give to know, you can deny your mortgage application. If you promised an endorsement, but were not able to provide one, the lender often denied the loan. You can also reject the application if found to have lied about your income, employment, down payment or credit history.