What to do if I was told I was approved for a home loan over the phone and now the banker says "not sure"?

Question

I gave my social and wife's social to the banker, and information over the phone. He ran it through and said we're approved up to a certain amount. Now that we've found a home and signed a contract, he is saying maybe. Help!!!!

Answer 1

you could be in deep doo doo. call that banker up right now. in fact, call his manager. tell the manager this story.

this is why you could really be over your head: you SIGNED a contract! obviously, you put earnest money down so that you could show the owner how earnest you were, right?

where is that earnest money now? has it been deposited by the seller's broker, as is required by law? there is a 2-business-day window to do it. did she do it yet?

you were really screwed. what a thoughtless, careless "loan specialist" (yeah, right) you talked to! the real ones, the ones that give a damn (because they get commissions on closed deals above their small annual income--real estate agents and brokers don't get any income until we close, btw), the ONLY ones that i myself EVER work with, are the ones that even go to your home, sit with you for a couple of hours, looking over your bills, tax returns, savings accounts, and pay stubs. they bring along a complete package that has a lot of information in it about all the various types of mortgage programs that you can choose from, based on your needs today and how you see yourselves progressing in the future.

and, the one thing that the good ones do is give you:

1. a truth in lending statement (not a respa, that is given to you at closing); and a promise to

2. have a written PRE APPROVAL, not prequalification, which is verbal, LETTER prepared for you within 2 days, which will say how much house you can afford, the down payment you have for it, the rate of interest to be charged, and for sure, the length of time that the letter is good, since interest rates change every day.

now i am sooooooo angry! did you hire, at no cost to you, a buyer's broker??? if not, you should have. this never would have happened if you did. can't you see that a buyer broker's job is to be your AGENT? to PROTECT YOU, and nobody else, in your real estate transaction, which may very well be the biggest outlay of cash you ever, ever put out in your entire life?

why don't people get a buyer broker?

a contract, not an offer (a contract has been signed and initialed everywhere by both parties to it), is a binding legal document. that's why i say you may be in deep doo doo now. if you do not do everything you promised in the contract, in the time periods set forth therein, you may end up being in breach of contract. if that happens, you may lose your earnest money! or, it could get tied up in court long enough
for this to become a seller's market, not the buyer's market that we have right now.

call the manager of that little punk. get this straight, and do it fast. there is danger lurking around your corner.

golly, it makes me so mad when "specialists" do not do their job, nor do they care!

Answer 2

If you did not fill out a complete application there is no way someone can approve you. This cannot be done over the telephone. What you probably received was a pre-qualification. The banker should have made that clear. A pre-qualification simply states that based on the information presented you appear to be qualified for a loan. A pre-approval is always in writing, contains respa disclosures, etc. If you feel this banker was less than candid with you, go to someone else and get a loan.

Answer 3

You don't have a letter of commitment, so your stuck! I'm sorry. Unfortunately, there are many hungry lenders out there who will "blue sky" you. All is NOT lost!

I would suggest obtaining a copy of your credit report from the lender who "says" he pre-qualified you. Black out your social security numbers and give it to a Mortgage Broker. The broker as opposed to the bank has many more options to find a lender who will offer you financing. I suggest deleting your social security numbers, because with each time your credit is run, your credit score declines, as do your available options.

Answer 4

Right. A mistake on your part. Don't participate in phone calls and offers of loans. go to a reputable lending service and complete an application.