Pre-approved but Still Can’t Buy That House? Here’s Why & how to fix it

You’ve been told you’re preapproved for a mortgage — great news, right? Not so fast. Many buyers are surprised to learn that a preapproval doesn’t always mean you’re ready to buy. Before you fall in love with a home, it’s worth taking a closer look at what your preapproval really means.

Why Pre-approval Isn’t Always Enough

Pre-approval is a fantastic first step, but it can sometimes be misleading. In many cases, a quick online form or a five-minute chat with the bank is called a “pre-approval,” even though no one has reviewed your income, debt, down payment, or financial history in detail. That can create major problems later, when you’ve already found the home you want.

The last thing you want is to make an offer only to discover the numbers don’t add up. It’s stressful, disappointing, and avoidable with the right preparation.

Real-Life Examples

These situations happen more often than you think:

• The Almost Buyer: She thought she was pre-approved, but her job was only a pending interview, and her down payment was promised by her landlord. Once the lender asked for real documents, the deal collapsed.

• The Million-Dollar Maybe: She said she was shopping for a million-dollar home, but in reality had no stable income, pending lawsuits, and a recent bankruptcy. When asked for documents, she disappeared.

Both buyers wasted time and energy because their preapproval wasn’t properly verified.

5 Questions to Ask Before You Start House Hunting

1. Employment & Income

   • Are you employed or self-employed?

   • How stable is your income?

   • Do you have two years of tax returns and your Notice of Assessment if you’re self-employed?

2. Down Payment Readiness

   • Is your down payment already in your account?

   • Or are you waiting on a gift, sale, or “maybe” promise?

3. Debt & Credit

   • What debts do you have (credit cards, car loans, lines of credit)?

   • Have you filed for bankruptcy or a consumer proposal?

4. Legal & Financial Uncertainty

   • Are you in the middle of a separation or lawsuit?

   • Do you have the necessary legal agreements documented?

5. Budget Reality Check

   • How much can you comfortably afford each month?

   • Use a rough guide: every $100,000 of mortgage = about $506/month at 4.5% over 30 years.

The Next Step

If all this feels overwhelming, don’t worry. A quick conversation with a qualified mortgage broker can save you a lot of stress. They’ll review your documents, check your numbers, and give you a clear picture of what you can actually afford.

That way, when you fall in love with a home, you’ll know you can make it yours.

Final Thoughts

Buying a home is about more than opening doors for showings. It’s about being financially prepared and setting yourself up for success. A real preapproval — backed by documents, not just words — gives you confidence and protects you from disappointment.

If you’re not sure where you stand, let’s connect. I’ll introduce you to trusted mortgage partners who can guide you through the process and make sure you’re ready when the right home comes along.