I have some shaky deals now. Its tough to get them closed these days. The programs keep changing. You might want to try to get a second opinion.

Like Chuck mentions above, get a second opinion. While there are several changes occurring in the lending industry, I'm saving about 10-15 deals a month that come to me with this same dilemma.

You're 3 hours ahead, so if you want to call me you certainly can. I'm with Bank of America Mortgage, and can lend nationwide.

I'd be scurrying to find another good lender who can do the loan and extend the close of escrow, the other agent won't be happy about it...In northern CA loan contingency is removed when the lender says loan is approved and docs are being sent to the title company...the problem is that in my area, once buyers sign all documents in title, the docs are sent back for the lender/underwriter for review before funding...If the lender/underwriter sees something that may not be quite right they have always had the right to stop funding for whatever reason! In my area it has never been a problem but it could happen in this market...The loan contingency should be in place until close of escrow but the problem is, that is not the norm around here...In CA if the buyer removes loan contingency and the lender does give buyer the loan at the last minute then our buyers will lose their deposit

Jeff, as a former loan officer I know exactly what you are talking about. I hate to tell you but a pre-approval letter is worth about as much as the paper it is printed on. I know and have worked with several LO's who will give out a pre-approval letter to get the business and sweat the approval later.

The second problem is many lenders do the same thing to LO's. I have had a few lender reps promise approvals just to get the business and then not be able to deliver.

Lastly with todays loan market I have seen more than a few loans that were approved in the morning, and turned down that afteroon because of changes in programs.

I went out and found myself a Mortgage Broker/owner and formed a solid relationship with them. I know they will be honest with me and if they can't get it done won't waste my time. Thats my suggestion. This would be a great first deal to take to someone who will be anxious to earn your business!

We had the same thing happen a few weeks ago.  The sad part is that my buyer is a Loan Originator for the lender that ended up turning him down at the end.  He went through the entire pre-approval process and the underwriter gave his stamp of approval before we made the offer.  He is so pissed,but the lenders are changing the rules almost daily. 

Jeff

I feel for ya. And I have to be honest..... When I first started in this business I was taught(by the company owner) to say 'yes' and get the loan in house so we could figure out how we might be able to get it done. Thankfully, I had an old veteran pull me to the side and correct that behavior.

Lenders STILL operate this way.

What was the reasons? Maybe a second opinion? Let me know if I can help. (not a solicitation for referral, I don't do a lot of biz outside of texas).

It's happening around here too often.  I freaked when my buyer's loan was canceled.  He qualified for a different program, though a little higher rate, and we're back on track.

So sorry that happened to you, but it seems a common place problem these days. Hoping things work out for you.

Jeff ~ As some others here have suggested - have your clients talk to other lenders to see if they can get approved. I am not a mortgage expert, but I have had loan officers do something called a manual underwrite for clients who had "special circumstances" that could be explained although the clients didn't fit into the lender's conventional "mold".  Best wishes...

I'm sure your already doing this. I would get out there and try to get them approved through someone else.  Let us know how it goes.

Jeff~It appears to be a common comment here, but I would have to agree that it would be a great option to get another approval.  I'm going through something similar right now. My biggest concern is when my clients are working with a lender I don't know and when I ask the same question I ask everybody, "have they gone through a solid approval with underwriting to meet conditions"?  I want my clients to be go through the some sort of underwriting prior to taking them shopping.  That tells me the LO has really looked into everything in the beginning stages. 

Jeff:  I feel your pain.   I think part of what is happening in the mortgage industry now as that their loan programs are changing quick and fast.  So just because they got them qualified last week doesn't mean that they will qualify this week.    I would agree with some of the other posts, get a second opinion, as you still may find a way to get them qualified.

First I always make sure the letter is from a reputable lender, preferably an underwriter from a bank.  Then I always ask for a pre-approval instead of a pre-qualification.  A pre-qual. only checks the credit score but a true pre-approval check credit, job status, and debt to income ratio at a minimum.     

Jeff, I agree with what everyone else had to say. It is important to know the difference between a pre-qualification and a pre-approval. However it is very important for your clients and you to understand that getting a pre-approval does not guarantee a rate or financing. Interest rates change daily, lending institutions gain and loose programs. Suggest that client shop around ,not all lending instiutions offer the same programs and have different qualifications.  I would suggest meeting with your company's finance manager, have a one to one meeting and have him or her fully explain the process. My company offers extensive new agent training and meeting with the finance manager is one of them. After this you learn about the various programs and the qualifications and have realistic expectations.  You should be in constant contact with the Loan officer and they should be updating you. If you do this then there should not be any surprises at closing. Good luck.

Hey Jeff,

What a precious family you have! You should be proud!

Like everyone's saying here... pre-qual isn't worth much. It's the pre-approval you're after once the buyer has given them W2's, 1099's, bank statements, etc. They could've said yes to just get the business or the loan program could've gone away in the meantime, you just don't know. I would suggest you talk to Katie Sparkman - www.katiesparkman.com - she is honest as the day is long. She'll leave no stone unturned and is the backup lender for Ryland Homes if they can't get a deal done. She will always call you back, too, is so communicative and you will never have to ask her for a status update. Katie won't blow wind up your skirt. I can't recommend her highly enough. Contact me with any questions.

Best wishes to you,

Terri Hayley

Keller Williams 

Sorry for the loss...hopefully they can get a diffrent lender soon.  Good Luck!

This is happening to alot my agents.  One thing to avoid is internet lenders...that seems to be the biggest portion of it.

Jeff, sorry to hear of this.  Hopefully you will find another lender to fix the problem.  Good luck to you and your buyers.

I work with a lender that will get 100% of the loans done if she says she can do it the first time. I've had buyers in the past that had their own lenders and the ball was consistently dropped for all sorts of reasons. I found a lender that is a FHA guru and puts in 90% of my buyers in homes that other lenders said no to.

Morning Jeff,

Guess most of us have experienced this fallout at lease once. Recently a client's mortgage broker, called two days prior to closing with a list of lender demands. Obviously the broker had waited until the last minute to work the package. There was no way we could provide all the reguired information in the limited timeframe. I have had the good fortuine to work with a local Mortgage Broker. I suggested him to the buyers. They met, qualified, obtained a more favorable loan and we closed on time.

Thankfully there are still service providers out there that take pride in doing their job.