One of the most misunderstood items in the home loan process has to be the pre-approval letter. The pre-approval letter is the letter your Realtor® said you needed to get before viewing Spring Texas homes for sale.
So away you went and met with a loan officer and got yourself one of those pre-approval letters. You then went out and found the Spring Texas home of your dreams, submitted an offer, got into contract, and now you are counting down the days till closing day.
You’ve been pre-approved for the loan so everything’s good. Right??
The thing about loan pre-approval is it’s NOT loan approval. The loan officer you met with can and does hand out pre-approval letters all day long. But the loan officer is not the person who approves the loan. The loan underwriter, the person you never meet, is the one who approves the loan.
The loan officer or the loan processor collects documents from you to support the information you provided on your loan application. These documents which include tax returns, pay stubs, W-2s, and letter of employment are submitted to the loan underwriter for review. The loan underwriter reviews the documentation and determines if you meet the lender’s guidelines for loan approval.
If the loan officer did a thorough job in reviewing your application before providing you a pre-approval letter, the underwriter should be able to approve you for the loan. But loan pre-approval is NOT a guarantee of loan approval. If you are unable to meet the loan underwriter’s documentation requirements and the underwriter is unwilling to accept an exception, then you will not receive loan approval. Seems harsh but that’s the way it is.
Bottom line: Don’t go scheduling movers and ordering address labels for your new Spring Texas home before you have loan approval.
Jill worked with us for nearly 11 months to help us find a plot and build a new home from... read moreJill worked with us for nearly 11 months to help us find a plot and build a new home from scratch. She took us through the process which we thought was daunting and at times frustrating. With her excellent local knowledge (including the area, the builder, the market, local school and tax system to name a few) and experience with building a new home (each steps that need to happen and what to look out for), we were able to find a place quickly and go through the building process smoothly. With the ability to grasp our needs and interests fairly quickly, Jill demonstrated strong representation of our interests, including negotiations on our behalf and recommending additional steps which builders would not typically do. Jill had a strong focus on customer service, not only being responsive and answering every questions in detail, but also proactively go extra miles to help us at every step along the way, including alerting us the things we need to do and watch for, helping us out in the design selection process (which very few agents would do) , walking us through the paper works and highlighting issues. It was our pleasure to know Jill and work with her in our new chapter of life. We are very happy with her excellent work and would not hesitate to recommend her to anyone. read less