Home > Blogs > Nan Jester > Nan Jester's Blog

What is a pre-approval?

By Nan Jester

Real Estate Agent with Exit Real Estate Gallery Jacksonville Beach, FL SL 463072

November 08, 2012 09:33 AM

What is a pre-approval? I have had several contract lately that have not closed because at the final hour the mortgage was not approved. This is not due to someone going out at the last moment and buying a huge car or boat.

My question is if you get a pre-approval, how can you come up with the reason that there is not enough income to qualify for a loan after 60 days. Now, couldn't they have figured this out 20 or 30 or 40 days ago? Their income didn't change, their credit didn't change.

They actually didn't send a denial of mortgage until 63 days after acceptance of the contract by both parties. REALLY? Never use them again. After much cajoling the seller is finally going to return their earnest money deposit but not without a fight.

I know as well as anyone else that a pre-approval is NOT an approval and I have seen some really valid reasons that they denied mortgages, even after a pre-approval but sometimes it just doesn't make any sense and makes me wonder.

Re-Blog

Comments(3)

Comment

Show All Comments

Sort:

Debbie Reynolds, C21 Platinum Properties

Platinum Properties- (931)771-9070 - Clarksville, TN

The Dedicated Clarksville TN Realtor-(931)320-6730

Nan, I am experiencing the same thing with my lenders. They are telling me it it the overlays of the underwriters that are killing the approvals. So basically the buyers are approved until the underwriter finds a reason to deny them.

Nov 08, 2012 09:39 AM

Nan Jester

Exit Real Estate Gallery Jacksonville Beach, FL - Jacksonville Beach, FL

Realtor, Exit Real Estate Gallery

If they don't deny, they delay. It is making the process horrible for the buyers. It has always been bad but now it is just unbelievable.

Nov 08, 2012 09:41 AM

Joni Bailey

101 Main St. Realty - Huntsville, TX

Your Huntsville / Lake Livingston Area REALTOR®

Oh wow! I have not experienced this one yet. It is taking a lot loger to finally get them to the closing table. Thank you for the warning. This is probably next.

Nov 09, 2012 07:19 AM

Comments(3)

Nan Jester

Recent Posts