When a Pre-Approval Isn’t Actually Approval
When a Pre-Approval Isn’t Actually Approval
Why Realtors Can’t Afford to Blindly Trust Every Lender
In today’s market, getting an offer accepted isn’t the hard part.
Getting it to close is.
Lately, I’ve been pulled into multiple “rescue missions”—offers accepted, homes taken off the market, timelines set… only for the deal to start unraveling once underwriting gets involved.
Different buyers. Different lenders.
Same root problem.
A pre-approval that never should’ve been issued.
A Real Scenario Realtors Are Seeing More Often
A buyer submits what looks like a strong offer.
The pre-approval checks the box.
Everyone moves forward.
But once the file is examined:
- Less than two years of work history
- Variable income only (hourly, commission, fluctuating pay)
- Prior history? Straight out of high school
This doesn’t mean the buyer can’t qualify.
It does mean the file requires precision, not assumptions.
The Truth About Pre-Approvals (This Is the Part That Matters)
A pre-approval is only as strong as:
- the income used to qualify it
- the guidelines actually followed
- and the lender who understands the difference between “maybe” and “mortgageable”
Variable income + limited history isn’t impossible —
but it requires structure, documentation, and time.
What it does not tolerate is shortcuts, guesswork, or optimism disguised as confidence.
Where Deals Start to Break
Many weak pre-approvals rely on:
- Income that hasn’t been averaged long enough
- Pay that looks good on paper but doesn’t meet guideline requirements
- Front-end approvals that haven’t been reviewed by underwriting
Everything looks fine—until underwriting gets involved.
And underwriting always gets involved.
What Buyer’s Agents Should Be Asking (Without Playing Underwriter)
You don’t need to know every lending rule.
You do need to ask smarter questions.
1. Is the buyer’s income salaried or variable?
If it’s variable, averaging and seasoning rules apply.
2. How much of that income is actually being used to qualify?
Not projected income. Not potential income. Qualified income.
3. Does the buyer meet the full two-year work history requirement?
If not, how is the gap being documented and justified?
4. Has an underwriter reviewed this income yet—or is this a front-end pre-approval?
This affects how much risk the seller is taking on.
5. What’s the backup plan if income is reduced or disallowed?
Strong lenders already know the answer.
If those answers aren’t clear, the offer isn’t strong—no matter the price.
Why This Matters for Sellers
When a seller accepts a shaky offer:
- The home comes off the market
- Showings stop
- Leverage disappears
If the deal collapses late, sellers lose time, momentum, and often negotiating power.
A strong offer isn’t just about price.
It’s about:
- financing that survives underwriting
- a lender who answers the phone
- and a buyer who is truly qualified
The Realtor Takeaway
Trust is important.
Verification is smarter.
The best agents don’t just get contracts signed—they get them closed.
Ask better questions.
Vet the lender.
And remember: hope is not a lending strategy.
Book time to chat My Calendar
Theresa Rolen, Loan Originator
NMLS# 2249004 | Brokerage NMLS #1850081
Cell 913-705-0049
Email Theresa@SummitLendingUSA.com
Theresa Rolen
Cell (913) 705-0049
