Lenders are no longer underwriting mortgage pre approvals; in fact today most mortgage pre approvals are nothing more than an automatically generated rate hold of 90 or 120 days.  Mortgage pre approvals can be a useful tool for knowing how much house you can afford and protecting you against rate increases, but they do not guarantee funding.   There are many variables that can affect the validity of your mortgage pre approval, mainly property appraisals and your financial actions between pre approval and purchase.

Additionally, lenders add a premium of 0.10% to pre approval rates to protect themselves from rate increases and lost expenses if you don’t get a mortgage from them.  Working with an experienced Mortgage Agent is more important now than ever, as they will be able to do a detailed review of your application, and give you a professional opinion on what you can afford. A Mortgage Agent also knows when rates will be increasing so they can time your pre-approval application to lock in your rate before they go up, guaranteeing you the lowest rate for a greater period of time.

See the full article “Truth About Mortgage Pre Approvals” here:

http://www.pstreetnews.com/news/truth-about-mortgage-pre-approvals