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We currently are under contract with a builder on a new home, however we haven't signed the paperwork from the bank for the loan, we are approved and have NO problem getting the loan, we however want to wait and pull out of contract, can we do that, the builder hasn't done anything to the house on our behalf yet.
Sorry, I don't have any detailed information on the buyer's credit. We may have some good news though. They've reapplied, this time for a conventional loan and we're told it looks good. I have no idea what the differences are, having only purchased one house. The appraisal was done today, so I guess they wouldn't do that unless the loan was going to be approved? Hope to know more soon...
Unfortunately, doing the appraisal is not an indication that the loan will get done. It's just done as a matter of course. It's just one step in the process that is done automatically.
We currently are under contract with a builder on a new home, however we haven't signed the paperwork from the bank for the loan, we are approved and have NO problem getting the loan, we however want to wait and pull out of contract, can we do that, the builder hasn't done anything to the house on our behalf yet.
You should probably start your own thread about this.
I'm facing the same situation right now but in this case I'm the buyer....
Quote:
Originally Posted by kaimik
The buyers are furious, having already invested in all the necessary FHA inspections and already made moving arrangements. They are getting an attorney to deal with the bank and vow to fight this tooth and nail. But realistically, what can be done? Can the bank get away with this?
We are in a complete panic, having already moved and absolutely must sell. What can we do?
hi kaimik, the same thing happened to me! but in this case I'm the buyer...
pre approval letter
lock in rate @ 4.8
Made offer/ seller accepted
house inspection
earnest deposit
when everything was ready to go lender says: Denied!
My question is who in their right mind would tell somebody to go ahead and make an offer on a property, based on a pre-approval and clearly stating they they will back you up financially--- to end up pulling the plug in the last minute????
This has got to be illegal, financial institutions shouldn't be able to do this kind of stuff...
1. i feel bad for wasting the sellers and the agents time...
2. why didn't it get denied in the first place? nothing changed financially? I wouldn't have started anything had I not been backed up by the pre approval loan!
sorry to make this so long but anyways... my agent was really nice and was able to get me in touch with another lender who seems to be able to work with me, however my rate has increased to 5.2! She advised me to fight for my loan, and I'm going to see what I can do... as a read on someone else's post, i'm going to try to correct whatever they didn't like and see what happens...
Arod07gq, ours is a bit like yours only we even received a commitment letter from the bank stating they will finance. When we called to lock in our rate today, our loan officer told us that the PMI companies have denied us mortgage insurance because "they didn't like the building." (The building is a complex of 8 buildings that have solid financials.) I'm thinking I need to go to another mortgage broker or to the bank directly!
Arod07gq, ours is a bit like yours only we even received a commitment letter from the bank stating they will finance. When we called to lock in our rate today, our loan officer told us that the PMI companies have denied us mortgage insurance because "they didn't like the building." (The building is a complex of 8 buildings that have solid financials.) I'm thinking I need to go to another mortgage broker or to the bank directly!
The PMI issue seems to be getting much more attention from lenders. I just helped clients buy a home (15% down) and the lender insisted on PMI being in place before proceeding further. Fortunately for my clients, there was no problem other than it took an additional ten days, but it was a period of uncertainty...
What happened? There is no end to this story? Fill us in!!
On this side, I did take my loan application to another lender altogether who worked diligently to help me close. The previous broker said that he dealt with 3 of the PMI companies and 2 of them wouldn't insure. (When asked about the third one he just said they probably wouldn't insure, which lead me to pull the application and find another lender.)
It was just crazy that this took an additional two months to clear... But now I'm packing and getting ready to move so I'm happy it's over!
What happened? There is no end to this story? Fill us in!!
well for my part... after we got our loan denied... which was completely bogus. Our Agent from Century 21, which I highly recommend, took the time to help us find another lender and we were able to close in time. We were also able to keep all the moving arrangements that we had in place already and we are currently enjoying our new home! We started the process in good faith and we were absurdly denied a loan that we very well qualifed for, but I guess in the end, justice was served! I would be more than glad to provide Agent's info for anyone moving into the Alexandria...Kingstowne area...
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I'm facing the same situation right now but in this case I'm the buyer....
story ending....
well for my part... after we got our loan denied... which was completely bogus. Our Agent from Century 21, which I highly recommend, took the time to help us find another lender and we were able to close in time. We were also able to keep all the moving arrangements that we had in place already and we are currently enjoying our new home! We started the process in good faith and we were absurdly denied a loan that we very well qualifed for, but I guess in the end, justice was served!
