Documents Must Support Your Application
When is a loan approval not an approval?
Answer: When it's a pre-approval.
Although this seems like a trick question, mistaking an upfront pre-approval for a "final approval" happens frequently.
All approvals are conditional, and while you may have been "approved" with a lender online, or via an automated underwriting system by a loan officer at a bank or lender, there will be at some point, a human pair of eyes looking at, reviewing and documenting the loan file. This individual must "final approve" the loan.
At this point, lack of preparation, faulty explanations and the strength of a borrower's qualifications can be called into question. It is the underwriter's job to "poke holes" in the file.
Don't be surprised if, on the second pass, the underwriter reconditions for additional documention.
This can happen if the application and supporting documention don't match up.
Make sure every part of your loan application is completely accurate and able to be backed up with documentation.
Have your loan officer review the supporting documents prior to finalizing the application if you have doubts that it supports what you put on your application.
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The supporting documents need to match your loan application.
Each document will be reviewed and compared with what was written when you applied. If any of the information is inaccurate or insufficient, it will be changed and can put you out of qualifying.
To avoid this, carefully review and substantiate all details of your application with supporting documentation.
If unsure your documents will do the job, have your loan officer pre-review these before finalizing the application.