Closing of Escrow-HELP (real estate, apartment, renting)

[akodiet]

Good Morning to everyone. My husband and I been trying to purchase a house and to be able to that we applied for housing loan to one mortgage company. The mortgate banker informed us how much we are approved. My husband only starting to build his credit and also he has past collection agencies on his FICO report but all have been paid off. Now the mortgage banker informed us about how much we are approved deliberately we tried looking for the house that fit the loanable amount, then when we found the house and presented it to the loaning company the banker said he made a mistake and then again he gave us another amount lesser to the one that he had given us, desperately my husband really wanted a house because he is tired of renting apartment for $1400 a month so we begun searching again house cheaper than the one we like, now processing has been made, its almost 3 months our loan was not release and our loan keeps on being approved,denied,suspended,approved,denied,suspende d,pending then they require us to pay certain downpayment which total to $6,500 so we paid everything and then still our loan is suspended. the seller is getting mad with us and we dont know what to the mortgage company keep on hanging us up, last week he said that the closing of escrow is already on the scheduling process and then came this week we followed up they say that there was a problem with our bank statement they say my husband wont make much...I dont understand, before we apply the loan they have screened everyhting and they have inform us we were approved thats why we desperately search for a cheaper house at least a start so it'll fit my husband income and now they are saying that we lack requirements that we dont have much "RESERVE" on our bank....they should have never informed us that we were approved so we did'nt have to make the downpayment......if there is someone who is a real state lawyer please help us....we cant lose the money.....

[DMenscha]

Lenders have tightened up their processes substantially in the past 6 months. I had a client with a FICO almost to 900 and enough cash in the bank to buy the house in question 3 times over and the lender gave us fits.

You are probably the victim of the rapid changing underwriting requirements that have been happening or you have a terribly incompetent mortgage rep. Assuming you have real estate agent working with you, have them put some heat on the mortgage rep. If you don't have an agent, (sigh). Call another mortgage broker and get some advice there before you retain an attorney.

Good Luck!

[akodiet]

Can I Sue The Lender In Case They Deny Our Loan And Cant Refund The Money We Put As Downpayment?

[Ultrarunner]

I think that would depend on what you received in writing from the broker... were you pre-qualified, pre-approved or approved subject to the home appraisal and condition?

What does your Purchase Agreement state? Generally, the pre-printed forms outline the time frame each party has to complete certain things and I would not make an offer to purchase without making it "Subject to Loan Approval" if I needed a loan to close.

The entire industry is, for good reason in many cases, had the rug pulled from under them and it has left many would be buyers and sellers in a lurch.

In my experience, this situation mostly happens with mortgage brokers... sorry guys, but most mortgage brokers package loan docs and then shop for funding.

Banks, Savings and Loans and Credit Unions are generally a little bit more reliable... because initially, at least, they are actually making and funding the loan.

In 25 years, I've only met one Mortgage Broker that I have recommended and he is the owner of the company.

[rpatindol318]

im finish signing paper from escrow and i went to a department store and apply for credit card and i was approved but i did not use it do u think this will affect my closing?