5 Things That Can Go Wrong After Pre-Approval

5 Reasons You Can Be Denied a Mortgage

Here are five things that can derail your mortgage loan even if you’ve been pre-approved by a lender. If you can avoid these types of issues, you’ll be more likely to receive a “clear to close” green light from the underwriter.

1. You have insufficient documentation.

Mortgage lenders request a variety of financial documents when approving borrowers for home loans. These include Notice of Assessment (NOA's), bank statements, pay stubs and/or Job letter.

But they may not request all of these documents up front. In some cases, the mortgage lender will issue a pre-approval based on partial documentation. Later in the process, the underwriter might request additional documents.

In the best-case scenario, this will only lead to a slight delay in the mortgage approval process. In the worst-case scenario, it could cause you to be denied a mortgage due to insufficient documentation — even after you’ve been pre-approved for a loan.

You can reduce the chance of document-related problems by rounding up your documents in advance, and by staying in close contact with your broker before and during the underwriting process.

Download the PDF for the other 4 reasons.