A mortgage evaluation remains necessary after loan approval to mitigate risks arising from changes in borrower financial status, property value fluctuations, or evolving underwriting standards. Lenders reassess the borrower’s creditworthiness, property appraisals, and market conditions to ensure the loan aligns with initial risk parameters.

Post-approval evaluations address gaps between initial approval and closing. The Federal Housing Finance Agency (FHFA) reports that 8.5% of approved loans in 2022 faced issues like altered debt-to-income ratios or property value discrepancies before final closing. The Consumer Financial Protection Bureau (CFPB) notes 12% of applicants encountered post-approval problems, such as income documentation errors or credit score drops, potentially triggering loan rejections. Additionally, property appraisals adjusted 15% of times due to market shifts, as shown by a 2023 National Association of Realtors study, necessitating reevaluation to prevent overvaluation risks. Lenders also monitor regulatory updates, such as seasoning requirements for refinances, which may impact eligibility. These steps safeguard against defaults and ensure loans remain sustainable amid economic or personal changes.