You think your pre-approved Real Estate buyers will be approved? Think again...

I learn something everyday. And yesterday was no exception.

At the first place, when this couple contacted me for their real estate needs, they were explaining what they were looking for, that they have been pre-approved, not pre-qualified, with a mortgage broker, that they were coming to see few properties.

At the end of January, they came for a week-end as planed and we saw 4 houses that Saturday and another 3 that Sunday.

A couple of days later, we discussed an offer on one of them, a 95% of asking price offer that was accepted.

The inspections went OK and they were in their loan paperworks for a couple of weeks when I got a phone call from them. They have been denied. I had to confirm with their mortgage broker and ask how pre-approved buyers can suddenly be denied. Here are some details I was not aware of:

She is an artist and create art that she sells online, on her website, Ebay and other sites. She just need a one car garage space or an extra bedroom for her job. She's netting about $30K/year.

He's a manager of a firm that is restructuring and he's relocating from Richmond to Knoxville, to be the local branch' manager. He's netting about $60K/year.

Now  the best part. His income could not be taken as usable income from 2 lenders because that's an income produced in another state. They ruled that if they are moving to another state, that income will be lost. He will need to provide 6 to 12 months of income in the new state. The wife is OK because they ruled that she can continue her job anywhere and a relocation will not change her income.

Therefore, only the wife's income can be used and they will be able to buy a property at 1/3 of the original qualifying number.

On the phone with the mortgage broker, he was "shocked" while another one I called explained that it is part of all the new reforms that is happening in the mortgage industry.

Fortunately this time, I didn't lose that sale since we finally found an owner financing willing to cooperate with agents.

But in the last 4-6 months, I have had buyers who have had a hard time dealing with financing...

Today is another day, another new lesson...Can't wait to discover what it will be!