What Can Change Before Settlement
The period between approval and settlement contains multiple variables that can alter lending outcomes.
Approval does not remove execution risk.
Borrower-side changes
Outcomes may shift if:
- employment changes
- income reduces or becomes uncertain
- new liabilities are incurred
- credit conduct deteriorates
Lenders may reassess the application if material changes occur.
Property-side changes
Settlement risk can arise from:
- valuation revisions
- contract amendments
- title or legal issues
- property condition changes
Security acceptability must remain valid until completion.
Policy and market movement
Lender policy, funding costs, or regulatory settings may change between approval and settlement,
affecting conditions or eligibility.
Structural implication
Approval represents a point-in-time assessment,
not a permanent commitment.
This page explains execution risk only and does not evaluate specific transactions.