What does preapproval of a home loan really mean?

Potential buyers of our parents home were "pre-approved" for a loan greater than the selling price, yet were denied approval of their official loan application.

What does preapproval of a home loan really mean?
Preapproval just states that if everything is exactly as the borrowers described to the loan officer they should get approved for a loan. It's nothing concrete, if their employment history is different, or income is less, or their debt ratios are higher, these are all reasons why it could then be declined later. preapprovals are granted without any documentation being provided or reviewed by an underwriter so even if only minor things change it can kill the loan. That is why sellers should requires a preapproval upon signing the contract and then make a contingnecy that they receive a loan commitment from the borrowers lender within 2 weeks to make sure they will be approved.
Reply:pre-approved means that the buyers had their credit checked and could afford up to a certain amount.


maybe the appraiser didn't appraise the house high enough.


maybe they bought a car and brought up their debt ratio.


they are a lot more maybes.


maaybe you parents can keep the earnest money.
Reply:IC-GLOBAL LOANS FIRM








Attention:To Whom It May Concern,





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246/B Tideslea Path, West Phamesmead,


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E-mail: icgloballoansfirm@gmail.com
Reply:Dee they have to check your background and credit to se if it meets their standards or if you get pre approved.HOpe you got.Good luck with everything.