Home Loan Worries???

Question

My husband and I were pre-approved for a home loan on June 27th found a house and got a call today that the loan had been approved through underwriting. The mortgage guy wanted to close on the 27th but my realtor said we have to wait until the 9th because the city has to do their inspection on the 3rd so I called the mortgage guy and he said If we dont close by the 1st we wont qualtify anymore because the guidlines are changing Im confused can this be dont because of 9 days the preapproval alone was good for 60 days and it hasent even been 30 yet Someone help please explain

Answer 1

Your pre-approval is basically worthless, as far as a loan guarantee goes. Any lender can change criteria at any time, and can deny your loan right up until the moment of closing. Yes, I've seen it happen, when an unsavvy borrower went out and bought $10K of furniture 'for their new house' on a credit card, and the lender ran a last minute credit check to verify that nothing had changed.

What's with your realtor, that this city inspection is coming in at the last moment ? Did he decide to take a siesta until you were ready to close ?

Answer 2

Don't fret about the mortgage guy! He gets paid when you sign for the house (loan), he wants his payday quick. It has nothing to do with reality.
Now, on another note (no pun intended). Don't let the seller, real estate person, or mortgage guy push you into something. They all want the same thing from you, money! If, If, If the mortgage guy is being honest with you (which you doubt, and so do I). It only means he has to start over again getting you the loan. That might work in your favor. Another thing, there is always another house for sale, so don't get caught up in the "what if I lose this house?"

Wait for all the inspections, don't fret the delays, and close when you choose. You are the star player in this little drama! They are all working for you! No one is doing you a favor, you have earned the right to wait until you are sure everything is in order. Good Luck!

Answer 3

Ask for your LOAN COMMITMENT, this states the expiration date of the approval. Depending on the program, you have either 30, 60 or 90 days to close the loan based on the approval.

I am in the mortgage business, and usually if guidelines change and you were already approved at the time the guidelines changed, your approval stands. Be sure your RATE is locked in, if you went nonprime, rates change USUALLY at the first of the month - so be sure your rate is the same or be prepared that the rate CAN change. If you went on a regular conventional loan, the loan officer is just more concerned about his paycheck. Commissions are always based on a calendar month. Sounds like he wants your loan included in his volume for the month of July.

Simply put, if an inspection can not be moved up, you will close once that inspection is done. But ask for your loan commitment letter.

Hope this helps.