A "pre-approved" buyer made an offer on a house that was accepted by the seller. The buyer was then denied the loan by the bank that pre-approved him. The denial was justified by circumstances that were known at the time of the pre-approval. Can the bank be held liable for any losses resulting from the sale not going through or be forced to issue the loan?
Thanks for the quick answers so far. What is the point then of pre-approval? Why even bother with it?