Why Your Rate Can Change After a Pre-Approval

Imagine that you’ve found the perfect home, received a pre-approval letter and sold your existing home. Then, right before closing, your lender informs you of a rate increase that is so drastic, you can no longer afford the dream home. What would you do?

We don’t want you to have to answer this question, ever. Our clients simply do not get stuck in a situation like this, so why is it still happening with other lenders? Find out now, why your rate can change after a pre-approval.

Note: your rate will change with any lender until your property is under contract and your rate is locked. Read on for information on locking in your rate

Interest rates are influenced primarily by market conditions, and your personal credit risk. Market conditions are variable and based on our nation’s economic stability, unemployment levels, political unrest, consumer confidence, and the strength of our housing market – each of these factors can influence rates. Credit risk is an evaluation of your overall financial profile including equity in the subject property, credit history, income in comparison to expenses, and the amount of savings you have left after closing (learn more about mortgage reserves).

Pre-Approval Validity

Pre-approval letters are practically useless nowadays. Without complete information, those letters are a false promise at best. Instead of crunching a surface-level calculation based on what you think your home is worth, what you estimate your income is and what you believe your credit score may be, we rely on our seamless technology and industry-leading talent to answer any questions and provide a firm commitment.

We offer pre-approvals that not only go through our real-time underwriting engine but are subsequently reviewed by our underwriting team. Confused by what this means? Our professionals help empower you to make integral choices every step up the way. We are committed to providing certainty and stand behind our revolutionary take on the pre-approval process. That is why our clients and referral partners continue to do business with us; they know they are getting an approval that carries validity and merit.

Advocates & Preparation

We’re not your average Joe. In fact, we’re a bit ahead of our time. Instead of offering you generic options and pushing you to decide, we take the time to prepare you for the loan process and partner with you, advocating for your highest and best needs. Our unique model enables you to experience the best of both worlds: a self-driven technology process that gives you immediate and accurate feedback as you complete an application as well as access to sophisticated talent that can help answer complex questions about your finances.

Throughout the process, we ensure your application data is reliable, we optimize the terms for your unique situation, and we offer complete transparency of pricing. Go ahead: ask your questions up front so there are no surprises later. Our professionals are not compensated based on your interest rate, so you’ll know that we are working to get you the best rate available. Additionally, we have a consistent pricing system that caps our earnings and passes all available savings directly to our clients. Instead of working with the traditional gate-keeper to good rates, work with your partner in the modern home loan age.

Calculating for the Unexpected

To us, you’re not just another opportunity; you’re as unique as your home ownership dreams. Our customized approach helps you secure your home loan. Special circumstances come up in almost every transaction and we have the technology and expertise to address any of those challenges. We’re a team of home buyer advocates that anticipate hiccups, taking proactive action and planning from the start.

With other lenders, incomplete information gathered at pre-approval frequently results in changes in rate later in the process. With Neat Capital, there is no such thing as unexpected. We reduce variability by planning for circumstances that can change your rate which include, a change in credit score; accrual of new debt or reduction in assets; undisclosed facts that were previously unknown, incorrect, or incomplete data; and a change in jobs or income. We solve for this by gathering far more data upfront and working directly with our clients to avoid any surprises later.

Additionally, we prepare our clients to avoid certain actions during the process of closing on their loan. For example, we prepare our clients to avoiding writing that big check for tuition (changing asset balances), incurring new debts, or changing jobs. With this streamlined process, we encourage you to focus on maintaining your current financial profile during the process of obtaining a loan so that you may lock in your rate as soon as possible.

Though we cannot control shifts in the market, we can prepare and control for variables that may affect your customized loan and unique circumstances. Because our innovative technology calculates your approval with detailed loan requirements, the likelihood of your rate changing with us is extremely low; your rate will only change if there is an event after pre-approval that impacts your financial picture (see the list below). Let us offer certainty: work hand in hand with a partner who has the capacity to provide certainty in a pre-approval commitment and advocate for you to get you the most competitive rate available.

Changes after Pre-Approval that can impact your rate:

  1. A reduction in credit score between pre-approval and close
  2. Any new debt or reduction in your assets
  3. Incomplete or incorrect information you’ve provided
  4. A change in jobs or income
  5. Market variability (with an unlocked interest rate)

What Makes Neat Capital So, Neat

With us, we provide a pre-approval backed by valid data, real time analysis, and a commitment to back your earnest money (up to $10,000) if you qualify. By advocating for your best interest, we ensure that your data is collected correctly and that you’re empowered to make informed decisions around what interest rate and loan terms fit best. As a result, we eliminate the variables that often change rates late in the process. By working in the state of action rather than reaction by underwriting your loan in real time with our intuitive technology and notifying you immediately if something is missing. This sets us apart from any other financial technology home loan company. You are then in the driver’s seat and we give you all our resources, access to our team of advocates, and our financial knowledge to use at your disposal.

We recommend that you seek out a lender that goes the extra mile before issuing a pre-approval letter, evaluating your unique circumstances upfront. Neat Capital advocates for your needs, coaching you every step of the way to ensure accuracy of your data, approval, and interest rate. When you lock in your rate with us, you’ll have certainty that your loan will close on time and at the rate you expect.


About Neat Capital

Frustrating. Time-consuming. Stressful. Lack of confidence. Sound like your typical mortgage experience?

Neat Capital is different in every way. We’ve reinvented the mortgage from application to close, focusing on creating the ideal borrower experience.

It’s fast, hassle-free and transparent, prioritizing you every step of the way.