I agree with Tony; I don't know the details of your new lender, but if the pre-approval was based on a "zero-net" from your existing home sale, and the lender is reputable; if the preapproval has an extended "good through" date, etc. and you already have another home lined up to purchase. it may work out. I think the odds are against you, however, in the event the underwriters for your new loan question the situation and/or pull an updated credit report prior to closing... it really is a "wait and see" crapshoot like Tony mentioned... and one that you will have to decide if you are willing to take. I would absolutely have a back-up plan...

Stephanie,
The only thing I can think of is if your new lender updates your credit report prior to closing and it shows a short sale or if your scores are affected by the short sale it may hamper your chances. I do believe that most underwriters consider a short sale almost as bad as a foreclosure, however if you have a good explanation such as a job transfer you'll probably be OK. If it's a short sale just because you overbought (financial mismanagement) then you may have problems. You'll probably just have to wait and see