I just got prequalified for a mortgage. I know that this is not a guarantee that i will get the loan. has anyone ever not gotten approved after qualifiying. I was doubtful that i would get it in the first place and just dont want to get my hopes up.
2007-07-17 12:29:00 · 6 answers · asked by dillyd156 1 in Business & Finance ➔ Renting & Real Estate
Several times. If you're looking outside your price range or if the house has too many "issues" or is overpriced it's not at all unusual to not get through the approval.
2007-07-17 12:32:37 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
A prequalification is based upon nothing more than what you verbally state to a mortgage broker. The actual approval comes not from the mortgage broker, but from the underwriting department(s) of the lenders to which he submits your application.
This is when full credit checks are run, all data you give to the broker is verified for accuracy, your income/debt ratios are verified, and so on. Even AFTER you get approval, a lender will reserve the right to change to disapproval, should something change in your income status or credit file prior to the final authorization to close.
2007-07-17 12:37:14 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
Assuming you were pretty honest with answering the lender's questions, keep your hopes up!! The next step is providing the lender with the proof of all you told him/her, like your paystubs, credit card, rent receipts. The lender will process your app, send it to the underwriter. The underwriter will decide if your app looks good, if you are a good risk (can afford to make the payments of whatever the lender put down). If it gets to the underwriter bets good you will get the loan for a place unless there some hidden problems with your app or the place you are trying to get, like someone attaching claims to the home. I say go for it, be optimistic, worse case scenario, you will know exactly what you need to get a home of your own (and if you're in CA or want a good referral to a Realtor, email me, I'm a Realtor) Good luck!
2007-07-17 12:38:07 · answer #3 · answered by J k 3 · 0⤊ 0⤋
If you were prequalified correctly you should be okay, unfortunately there are many things that can effect you loan that you cannot forsee.
If you were prequalified and your credit was pulled you should be okay. Make sure your income and debt were also calculated correctly.
Good Luck! Congrats on buying a home!
2007-07-17 12:39:52 · answer #4 · answered by Anonymous · 0⤊ 1⤋
If you were honest and the loan officer asked the right questions before the prequal, you would be approved.
If you have a prequal letter and been rejected, there are lenders who would take a look and tell you if they can do it. Send me a copy if you were rejected. I can help you.
2007-07-17 13:42:17 · answer #5 · answered by Roger This 1 · 0⤊ 0⤋
A prequal means this... *ABSOLUTELY NOTHING*
Get a DU or LP approval, that way you know what your conditions are about. You can take the DU or LP to any lender, they will take it.
Im not going to explain what a DU or LP approval means, if your loan officer doesnt know, find another one.
2007-07-17 12:44:55 · answer #6 · answered by financing_loans 6 · 0⤊ 0⤋