Pre-Approvals Without Documents Are Risky—Here’s Why

Melody Salisbury
May 15
3 min read

Think You're Pre-Approved? Not If You Haven’t Done This — **Think You're Pre-Approved? Not If You Haven’t Done** ***This***

Getting pre-approved for a mortgage should give you confidence—but too often, it gives buyers a false sense of security. I’ve seen it time and time again: someone walks into their bank, has a quick conversation, and walks out feeling “pre-approved.” But when they submit an offer on a home and the bank finally looks at their full application? Everything falls apart.

That’s not just a hypothetical—this happens all the time.

A Real Story: “Pre-Approved” at the Bank... Until They Weren’t

One client came to me after being told by their bank they were pre-approved. No documents were submitted—just some rough numbers they gave over the phone and a soft credit pull. A few weeks later, they found the perfect home, had their offer accepted, and sent in all their documents expecting a smooth finish.

But the banker had made several assumptions that didn’t hold up:

They forgot about a personal loan, which changed their debt ratios.
They were self-employed and had provided gross income, not net.
And on top of that—they owed back taxes to the CRA.

The bank pulled the plug. The “pre-approval” turned out to be nothing more than a conditional rate hold, and the client was devastated. They had already fallen in love with the home.

Conditional Pre-Approvals: Why They Don’t Mean Much

Most lenders don’t fully review your application until it becomes “live”—meaning you have an accepted offer. Up until that point, many banks and brokers will issue what’s called a conditional pre-approval, which is based entirely on the information you gave them.

If you didn’t submit documents, they didn’t verify anything. That’s the problem.

So if the information was incomplete, inaccurate, or optimistic, your pre-approval is just a guess. And the lender doesn’t have to honour it once the real documents tell a different story.

📌 Key takeaway: If your income, credit, and liabilities haven’t been verified by a qualified professional, you’re not really pre-approved.

The Common Misunderstandings I See Every Week

It’s not that people are trying to be misleading—it’s just easy to misunderstand what lenders actually need. Here are a few examples I come across regularly:

Mistake	Why It Matters
Bonus or Over-time Income	Lenders typically need 2+ years of history to count it
Reporting gross income when self-employed	Only net taxable income usually counts
Forgetting to mention CRA tax debt	Lenders see it on your report and it impacts approval
Leaving out smaller debts	Even small monthly payments affect your affordability
Unverified Down Payments	Lenders need to see 90 days of account history to confirm the money is yours and not borrowed or suddenly deposited.
Material Changes	Any change to your job, debts, or finances can cancel your pre-approval—even after it’s issued.

It’s understandable—no one enjoys digging up T4s, NOAs, pay stubs, and bank statements. But submitting full documentation upfront is what turns a shaky pre-approval into a solid one.

Rate Holds Help, But They’re Not Approval

A rate hold can protect you from rising rates, and that’s important. But even if you have a rate held, that doesn’t mean the lender is committed to funding your mortgage.

They still need to review everything once you go live. That’s why working with someone who understands how to underwrite a file properly from the start makes such a difference.

The Property Matters, Too

Even if you’re fully approved, your lender also needs to approve the home you choose. They’re not just financing you, they’re also investing in the property. If the home has issues—poor inspection, unusual zoning, remote location, or structural problems—they can walk away.

It doesn’t mean you’re out of options, but it does mean you’ll need guidance on what to do next. Having an experienced broker in your corner can make that pivot seamless instead of stressful.

Buyers: Don’t Let Incomplete Advice Cost You Your Home

Buying a home is competitive and emotional. The last thing you want is to lose the house you love because someone didn’t review your file carefully enough. That’s why I take the time upfront to do it right. Yes, gathering all the documents can feel like a hassle—but it’s far better than watching your deal fall apart after it’s too late to fix it.