Denied after pre-approval (loan, credit report, requirements, loan)
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I was supposed to go look at houses today until my LO (Navy Federal Credit Union) called me and basically denied my whole loan. I been with my company for 2 years, but because my pay went from salary(9/08-10/09) to strictly commission(10/09 to present) that it wasn't enough to go with the loan process. She said I needed at least one more year of commission pay to qualify for the loan. How did I even make it to pre-approval then? Nobody asked for any paystubs, no w-2s, no tax returns, ect. I have all the documents but no one asked for them even when I brought it up. There's more to this story, just little things but I guess I'll talk about that later. So far I only paid $265 for the pre-approval process. My mom's best friend (ex-CEO of Heritage Title) said I got screwed and need to go up to the bank, request a manager, and fuss them out. Maybe, hopefully get something out of it. I think tomorrow I'm going to talk to my company and see if I can get a letter made for my LO. I sure there's a way around this. What do you guys think?
Generally pre-approval requires no documentation, just answering some questions. They approve/disapprove based on the answers. I would assume they should have at least looked at your documentation before denying. Is any part of your income guaranteed? It may also depend on the type of loan you are applying for. Is it a 0% down, FHA, 20% down? NFCU is generally pretty conservative, so they may not want to take the risk. You can always try another bank.
Generally pre-approval requires no documentation, just answering some questions. They approve/disapprove based on the answers. I would assume they should have at least looked at your documentation before denying. Is any part of your income guaranteed? It may also depend on the type of loan you are applying for. Is it a 0% down, FHA, 20% down? NFCU is generally pretty conservative, so they may not want to take the risk. You can always try another bank.
I understand what your saying but i remember during the pre-qualification the guy asked me what my salary was and I told him that it changed to commission only - that I can only give him a year pay range. He had an better idea, lets do an take home monthly average(I have direct deposit, so he can see my after-tax deposits). I was like okayyy??? would you rather see paystubs? He said no.
Is any part of my income guaranteed? Yes and no. There is no base pay. But as long as I show up to work like I'm suppose to do, I'm a beer salesman by the way, I will make my daily average pay because beer is very important to our economy. It will never disappear, its job security. Well, it was still hard explaining that to my LO.
I did not pay a dime for my pre approval process, not even for the credit report. I got pre approved but honestly I did not feel easy until we were at closing. I have seen many loans blow up right before closing.
The guidelines are pretty cut and dry. If commissioned sales or self employed, you must show a 2 year history before you can use that income to qualify for a mortgage.
You paid $265 for the pre approval process? What exactly did that cover? When looking for my last two houses I was pre-approved with over 10 banks and never once paid a dime for it. You should try and get your $265 back.
You keep saying you were pre-approved and then you said when you were going through the pre-qualification process. These are two completely different things and any responsible LO/lender would do two different things for both.
Pre-qual - means nothing. Answer questions. No credit pull (generally) and just based on your facts (which is what sounds like here).
Pre approval - show documents... pay stubs, etc. Depending on LO, they'd get more information.. put your info into a system that would pre-approve you.
You keep saying you were pre-approved and then you said when you were going through the pre-qualification process. These are two completely different things and any responsible LO/lender would do two different things for both.
Pre-qual - means nothing. Answer questions. No credit pull (generally) and just based on your facts (which is what sounds like here).
Pre approval - show documents... pay stubs, etc. Depending on LO, they'd get more information.. put your info into a system that would pre-approve you.
The process went like exactly how it was meant to go. Except I was denied a month after pre-approval. I paid $265 for the "application fee". My company came up with a letter to try to turn this around. Anyways, thanks guys.
The process went like exactly how it was meant to go. Except I was denied a month after pre-approval. I paid $265 for the "application fee". My company came up with a letter to try to turn this around. Anyways, thanks guys.
I would say you should get that money back. If you were pre-approved, they looked at your pay information and pulled credit. They should have done their due diligence to find that you did not meet the requirements for a loan. So they pre-approved you based on correct information - but it was their mistake that led you in the wrong direction.
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