We are pre-qualified for a home loan, can anything keep us from getting our loan?

Question

We put an offer on a house and everything looks good on our loan application. The disclosures arrived today, and the bank is asking for some additional information. My head says they are just confirming information we already discussed, but my heart is worried something is going to go wrong! Does everyone feel this way??

Answer 1

I am a mortgage consultant and all 'pre-qualified' means is, based on the information you have provided, you are eligible for a loan. There are about 12-15 different factors that effect you loan options ie credit scores, income, and very few people that are pre-approved are denied. They may change the rate and/or terms of your agreement if there are things that don't add up. Just wait to see what happens and if you are purchasing in CA, CO, AZ of MN, you can email me if things do change and I may be able to help you if you end up in a sticky situation.

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Good Luck!

Answer 2

It's normal to be nervous... but yes, there are a few ways you might not get the loan. First - whatever you do, don't do anything that will effect your Credit. For example, avoid making any unusual purchases - don't buy a car now, don't start buying furniture, and don't open up any new credit cards... or even close any current ones down. It's too late now, but in the future, always get your free annual credit report at www.annualcreditreport.com to see what the banks see and clean up any mistakes that hurt your credit. The only other way you'd not get the loan is if the house you are buying does not appraise. They may approve your loan, but only if you come up with more cash. Good luck.

Answer 3

I had a bad situation recently.. I got pre qualified and put a bid on a house, the day before closeing the bank called and said that there was a mistake and that my husbands credit would not pass and they could not loan me the entire purtchase price of the home on my income alone. I was screaming mad and called that banks corporate office and threatened to sue if they did not come through with the loan that they promised ( in wrighting) The bank tryed to say that the loan officer was new and didnt check everything. I told them that it was not my problim. I got my loan!

Answer 4

Its completely normal = ) The lender always send out disclosures to the borrowers. The lender also ask for further conditions after the loan has been submitted. If the application looks good and if you have a decent credit, you shouldnt be worried. I felt the same way when I purchased my house, not to mention that I was processing my own loan = )

Answer 5

If you have no credit problems and have been paying your bills on time, it's just a formality. If you have a few late payments, they will usually ask for an explanation letter as to why you were late in the past. If it's only a few times that you've been late and it was a legit reason, they overlook it.

As long as you have enough income (which you should already know what you can/can't afford) and your credit isn't really bad, you should have no worries.

Answer 6

That is a very natural feeling and to answer your question, yes, your loan could be refused if you recently purchased large items to furnish your next home.
You should of been warned by your agent not to make any such purchases until after your closing. Credit checks just before closing have caused many a deal to go south.
Hope this helps.

Answer 7

pre qualification doesn't mean squat. it's a general guideline on how much house a mortgage company or bank will lend you.

These days, the banks have to be diligent in underwriting mortgage loans, especially after all the crap subprime mortgages everyone's been doing the past 5 years or so.

if your credit is good & you make enough $$$ to support mortgage payments, don't worry too much. the bank is in the business of approving your loan so it can make money.

Answer 8

"Pre-qualified' is based on conversation with your loan officer. "Pre-approved" is based on your loan officer gathering proof and submitting the disclosures to an underwriter. You should always get pre-approved before putting in an offer on a house, if you are worried.

Answer 9

It's normal to worry some when in the process of buying a house. As long as all the info you provided was accurate and nothing major has changed, you'll probably be OK. Good luck - and enjoy your new home.

Answer 10

The butterflies happen to everyone!

Unless something happened to change your finances you are OK, they are just dotting the i's.