there are no guarantees in real estate....that's why agents should never spend the commission until it's in their account....  financial status can change like the weather....

Lotta moving parts here. Which include humans.  ;)

This is why I make no apology about having a favorite loan professional -- who verifies all documentation, then puts the borrower through underwriting before issuing an AZPQ. In 17 years, only once has a deal fallen out with this lender, and it was truly an anomaly. The downside is, it takes time to get that comprehensive a document - but that's why you do it before you start looking!

To answer your Q: Is there such a thing as 100% assurance a buyer can close? Nope. Can we come close, 'God willing and the creek don't rise'? Pretty damn near.

My answer is a combination of those provided by Candice A. Donofrio and Barbara Todaro.   Lots of variables, the human element and the fact that "stuff" happens.   

I use the gold standard to pre-approve my clients; I send them to Jason E. Gordon and what/who he pre-approves, you can take to the bank.

The answer lies behind all the people involved. People don't buy or sell Real Estate for fun. Everyone in a transaction wants it to happen. Believe this

The only assurance is when the seller and buyer are at the closing table and have signed all of the papers. Up until then, there are no guarantees. The buyer can back out, the seller refuses to sell and the lender finds out a problem that can't be fixed. You need to have a trusted lender, for sure, but in the end, there are no guarantees

A pre-approval is only as good as the loan officer and company behind it.  I have received Pre-approvals from Rocket Mortgage that were good, and Pre-approvals from Chase that were not.

A pre-approval is just a starting point... and it's up to the Realtor to stay on the loan officer to make sure that the loan is on track.

     Until the underwriter has reviewed credit reports, proof of income, etc. nothing is guaranteed.  Even after the review, the Buyer can buy a car or default on a CC payment, and the whole thing collapses.

As a seller's agent you really cannot be sure until you are at the closing table and the buyer has signed everything.  When working with local lenders, most have a reputation for how often they close the buyers they represent.  

As the listing agent, you call the lender on the "pre-approval" and find out how much work has been done on the potential loan.

Annette Lawrence , Palm Harbor, FL 727-420-4041 Right now it is all we have to form a basis that the potential borrower can get a mortgage. Short of going through a loan process and underwriting. Today commitment letters don't really much. I've seen letters where the lender will commit to giving the loan then list a page of contingencies. They aren't committing to anything.

Ask questions on how/where the preapp is in the process. I agree that many LO's scam the whole process & then we find out nothing has been looked at by an underwriter, etc.

At some point, we have to have faith that people are doing their jobs. Especially with privacy laws, we can only ask so many questions.

I created a blog about this topic which hopefully will shed some light on the details you are seeking.  Please feel free to message me directly if/when you have any questions.

Bottom line, it's all about how much due diligence the Lender does up front.  Details in the link below...

http://activerain.com/blogsview/4899160/pre-qualification-vs-pre-approval-vs-cross-approval-vs--10k-assurance

I talk with the lender and make sure they've reviewed all the paperwork and it's gone through underwriting.  Otherwise I call it a glorified pre-qual.

I'm working with a lender now who takes a week to get you the initial pre-approval, but he goes through every piece of paper needed and gets a full underwritter approval.  Only thing the loan is contingent on is a house and an appraisal.  That's helped get offers accepted.

I get my mortgage representative handle the pre-approval, if he said we are good, we are good. The end...

We contact the lender who completed this form:

https://www.aaronline.com/wp-content/uploads/2017/01/Pre-Qualification_Form_February_2017.pdf

and verify that the document is accurate.  If it isn't, based on verbiage in the contract between Buyer and Seller, Earnest Money is almost certainly not going back to the Buyer if they fail to close.

There are no guarantees... but I do know that when I get a pre-approval that's been looked at by an underwriter in specific lender institutions, I'm reasonably safe so long as the buyer doesn't go and do something stupid... but that we have no control over.

If "assurance" is being used synonymously with "guarantee", there is no such thing.   The more information that can be validated (and nothing changes), the greater the likelihood of a successful closing.

Vetting.  Like Candice A. Donofrio buyers are requested (not required) to allow their financials to be vetted by my trusted lending partner.  It never hurts to have 2 sets of eyes on a buyers qualification. 

We really can't.

First off I tell my clients to stay with a local bank and away from the internet.  I have had goodluck that way

All those example are out of your control!  you need to control the deal and have a Loan Officer  on your team, now you know what to expect from that piece of paper. 

It is best to work with a local trusted mortgage loan officer who has a record of success.

In my area, if the buyer has worked with a trusted local lender, a preapproval is given with conditions of appraisal, no change in income or debt load. That seems to work most of the time.

Often it starts with a lender that you know will not commit to a preapproval unless they know that they can close.

I always call a lender to introduce myself and ask how exactly they verified the information, if no communication, no answers ( clear indication of how the whole transaction will go on if we work together), I ask a client to talk to my preferred lender just to make sure we have a backup. 

Annette,

My answer would be the same as Michael Jacobs .  The human factor is unpredictable.  A

You got to trust your guts!

I do try to match the right lender with the right buyer.. but its as much about the quality of their work as it is the loan programs offered.

No guarantees, but knowing the professionalism of the loan officer helps!

This reeads like you had a 'solid' buyer fail at getting financed?

I think you need to find an LO that you trust to review your borrower. For many of my agents, I have reviewed deals for borrowers that were not mine. I am very fortunate, that in my area, if the Attorney knows I give it the OK, the deal will move forward. After 50 years in this business, I guess they feel I have some idea of what makes a good buyer...lol

Assurance is not a term I would use as one never knows what a buyer may do. If the buyer follows the rules of obtaining a mortgage (not quit their job, purchase a car if their DTIR is tight or obtain new credit for furniture, appliances, etc.), any of my preferred lenders will get the job done. My buyers go through the pre-approval process - all they need is an address and an appraisal and they'll be ready in, literally, days. You REALLY have to use lenders you have vetted and that you trust. 

That said, none of us can predict when a buyer may lose his/her job or have a financial crisis that will sideline them and take away all assurances.

As with most things, it takes experience... 

Only accept local lenders and major lenders. Call the loan agent asking about the buyers. In my case, they call me telling me how strong they are. I chose not to ans calls as I am getting many.