Can mortgage company back out after pre-approval?

[porcelina68]

What is the name of your state? Indiana

I have a pre-approval letter from my mortgage company, and I have satisfied all of the conditions of that pre-approval. My house is about 3 weeks away from being finished, and now, my mortgage company is saying that I need to try and take care of a very old bill that is showing up on my credit report. (It was also on the credit report they pulled BEFORE giving me a pre-approval, and I was told not to worry about it.) If I can't do this, can they withdraw the pre-approval and let the deal fall through? If so, what kind of recourse do I have?

 

[HomeGuru]

What is the name of your state? Indiana

I have a pre-approval letter from my mortgage company, and I have satisfied all of the conditions of that pre-approval. My house is about 3 weeks away from being finished, and now, my mortgage company is saying that I need to try and take care of a very old bill that is showing up on my credit report. (It was also on the credit report they pulled BEFORE giving me a pre-approval, and I was told not to worry about it.) If I can't do this, can they withdraw the pre-approval and let the deal fall through?

**A: yes.
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If so, what kind of recourse do I have?

**A: none.