Why does a loan get stuck during the formal underwriting process after pre-approval?

Many buyers mistakenly believe that receiving a pre-approval means the loan is guaranteed. This is a common misunderstanding. Pre-approval only covers an initial review of income, credit, and general assets. Formal underwriting involves a much more detailed review, especially after the contract is signed, as loan terms, the property itself, and the source of funds all come into play. Some of the…