“Preapproval Said Borrower was Approved for a USDA Mortgage”
I don’t consider myself the average seller of real estate. I have been a very active buyer and seller of real estate for many years. I have also had the privilege of being in the mortgage business for many years. I also don’t like to mix the two, never willing to do mortgages on anything where I am the owner of the real estate being sold, for obvious reasons. I just don’t want any possible conflicts.
OK, so where am I going with this. I put a newly renovated home on the market, fortunately there was lots of action. There were a number of interested parties and settled in on a transaction where there buyer was approved for a USDA mortgage. I reviewed the preapproval, but I always wonder if the loan officer knows what they are doing.
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After accepting a contract, all inspections completed, appraisal done, the lender tells the buyer he is not qualified for a USDA loan.
The selling agent got permission to contact me to see if I could help. I spoke to the borrower directly and it turns out he could NEVER qualify for a USDA loan. There are maximum income limits and these limits are based on household income and in his case, combined they were $40,000 over the limit.
The loan officer had no clue, as he didn’t ask. I felt very bad for the buyer, as he and his fiancé loved the home and they do not have any access to a down payment.
Again, I am not the average home seller, but truly understand what it would be like for the home seller that doesn’t do this every day and is told, the buyer really wasn’t qualified in the first place.
Unfortunately, stuff like this makes those of us that do a good job and know what we are doing, not always look so good in the eyes of the public.
Oh well, on to the next transaction.
image courtesy of suphakit73/freedigitalphotos.net
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