When you have been pre-approved and (loan officer, 2009, approval, credit)

[micheleroll]

put in a contract, then approved through the automated system that the loan officer is using, on top that you are selecting things for the home and then they started building the home. Does this means you are in the clear of a final approval and the home is yours? Still don't have a closing date yet. I just know it will be some time in June.

[Daddys///M3]

What that means is that you have a credit approval, or conditional approval. All of the conditions that are requested by the lender will need to be satisfied to receive a clear to close, or final approval. Most times these conditions are minor things like verifications of deposit or verifications of employment, and are really just formalities, given the information provided was accurate.

[renriq02]

just make sure you dont fall into this category.

http://www.city-data.com/forum/mortg...-mortgage.html


Lenders are changing guidelines everday...and you want to make sure you have a good shot of closing

[jeannie216]

Originally Posted by Daddys///M3

What that means is that you have a credit approval, or conditional approval. All of the conditions that are requested by the lender will need to be satisfied to receive a clear to close, or final approval. Most times these conditions are minor things like verifications of deposit or verifications of employment, and are really just formalities, given the information provided was accurate.

We were in this position with our buyers. They had a mortgage commitment and were waiting final investor approval and were denied. Reapplied through a different broker and lender and were denied once again. Why, we don't know.

[Daddys///M3]

Originally Posted by jeannie216

We were in this position with our buyers. They had a mortgage commitment and were waiting final investor approval and were denied. Reapplied through a different broker and lender and were denied once again. Why, we don't know.

If they had a conditional approval and the deal was denied, either guidelines had changed or they could not provide the documentation necessary to back up the info they provided, which is why I said most times the conditions are formalities. For example, when I gather documentation on a client I will get check stubs, W-2's, and bank statements. The conditions may be a verbal or written verification of employment, and a verification of deposit from the borrower's bank. Because I have already gathered this info, then it would be a formality. However, if the borrower took out additional credit or drained their bank account between the time of original application and conditional approval, then that would at the very least slow down the process, and likely kill the deal, depending on the loan program. Likewise, if the borrower deposited a large amount of cash into their bank in that time period, and the VOD reflected a higher amount than the bank statements, then I would need to source those additional funds with documentation, and possibly write a letter of explanation.

Of course there is always the possibility that the LO in your case did not verify anything before running automated underwriting on the borrowers, and got the credit approval with false information.

[Daddys///M3]

Originally Posted by Daddys///M3

What that means is that you have a credit approval, or conditional approval. All of the conditions that are requested by the lender will need to be satisfied to receive a clear to close, or final approval. Most times these conditions are minor things like verifications of deposit or verifications of employment, and are really just formalities, given the information provided was accurate.

Let me clarify this. If you have been approved through automated underwriting, but the loan has not been submitted yet, then you have a pre-approval. Only when the UW receives the file and conditions it will you have a conditional approval. Sorry for any confusion.

[Geometry]

And nothing that was stated changed i.e. Fico score, income, assets, your tax returns what you stated.

I think we gone find more dumbfounded ppl out there then your usual not so honest application scenrio. What they (the UR) don't say is that Fear is hanging in the air and the D word is not so far fetch any more...

[Daddys///M3]

Originally Posted by Geometry

And nothing that was stated changed i.e. Fico score, income, assets, your tax returns what you stated.

I think we gone find more dumbfounded ppl out there then your usual not so honest application scenrio. What they (the UR) don't say is that Fear is hanging in the air and the D word is not so far fetch any more...

I think that you will find that lenders do not kill deals because they are scared to lend. Either you qualify per underwriting guidelines or you don't. If you had been pre-approved on a conventional full doc loan, and later denied then I would chalk it up to a LO that is trying to squeeze blood out of a stone, perhaps, unless guidelines change mid-stream due to loan to value cuts or higher FICO requirements.

Alot of desperate mortgage professionals out there right now, many of them will promise the world and chase deals that they would be better off walking away from.

[TwiloMike]

Originally Posted by micheleroll

put in a contract, then approved through the automated system that the loan officer is using, on top that you are selecting things for the home and then they started building the home. Does this means you are in the clear of a final approval and the home is yours? Still don't have a closing date yet. I just know it will be some time in June.

As long as at the time of Closing the program for which you were qualified still exists, you still qualify for its guidelines, and your credit/income/asset situation hasn't changed from what what used to get your approval, you should be fine.

[rettogo]

Originally Posted by Daddys///M3

What that means is that you have a credit approval, or conditional approval. All of the conditions that are requested by the lender will need to be satisfied to receive a clear to close, or final approval. Most times these conditions are minor things like verifications of deposit or verifications of employment, and are really just formalities, given the information provided was accurate.

I was just as confused. This is our first home purchase and therefore, this whole loan process is confusing and exhausting. We first got a prequalified so we knew what price range we should even consider. We then found a house we loved and went forth with getting preapproved. That all went well, they ran everything through thier system and was told that if everything we provided was accurate and could be proven via documentation, we will be good to go.

Since then we've signed a contract, put a $1000 on the house to take it off the market and the builders and the loan company have us closing by the 31st of this month.

Well to this date, I still don't have an actual yes for our funds. It seems like everyday we are turning in paperwork on top of paperwork and now I'm starting to think somethings wrong. I was under the impression that once you've been preapproved and produced documents, that was money in the bank. Who knew you had to get pre approved to get pre approved?

If everything goes well, I won't be in the market anytime soon. Buying a house is stressful and when you don't know what is going on or completely understand the process, it makes it even more stressful. Good luck to you!