FHA pre-approval-then denied

[DallasLoanGuy]

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shalane85 wrote:

Okay so lets say that I get pre-approved can I request to the LO that they send my file to the underwriter before I pay inspection costs and other fees?

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you can ask.

depends on the lender

[Anonymous]

We didn't get a preapproval letter until after our LO sent it to manual underwriting. Is there still a chance we won't get the final approval? Things went sort of backwards for us.. We found the house we liked but didn't make an offer on it because the realitor wanted us to prequalify first.. so we called and the LO sent it to automatic, but it was then denied because of my shorter credit history.. so she sent it to manual underwriting and that took a few days, we sent all the documents that were asked for (W2's, tax returns, pay stubs, bank statements). Then they sent the letter of Approval stating how much we would be able to borrow and the GFE. At that time the real estate agent called us and told us that she had spoken with our LO and we had been approved and it was time to make an offer on the house if we wanted. So we did and the seller's accepted. Now all we're waiting on is the Appraisal and title check. Are we in the clear barring any unforeseen problems with the appraisal? Or is there still a chance we could get denied at the last minute. No changes in my credit report except for a 6 point rise in my Fico and no changes expected either.. besides maybe more points added for paying down credit card debt. Our closing is July 16th and I will be sweating bullets until then. Tim

Message Edited by timl1987 on 06-23-2008 08:56 AM

[Tryin2rebuild08]

Rae,

Sorry to hear about that, but don't give up on your dream. I had a similar situation like this in October. I got pre-approved from a morgage company. I was very surprised and excited, so I started looking at homes. The lady didn't tell me much, except I can try to get a trade line to increase my score to get a better rate, she even told me not to pay off anything as yet on my credit report. I took her stupid advise. Anyway, I found a home that i liked. Contacted the lady again, who negleted to return my calls and emails. Finally, she replied to my email saying, She will refer me to a credit counseling agency, who is very good. The agency contacted me and charge me $945.00. I thought hell no. During the time I was waiting on that morgage co. I applied for a morgage from CountryWide. The lady there was very nice and helpful and advised me not to pay any fees for credit repair. She stated I did not get instant approval, but if I work on some things on my report they can get me pre-approved with manual underwriting. Then she directed me to myfico, and here I am. So I still do have some confidence. This is just to show you, that everyone is not knowledgeable about their jobs and some people are only in it to make money. It's just said. I think you should try a different company. Good Luck!

[Anonymous]

When the loan didn't go through, my realtor put me in contact with a woman at Countrywide.  I was so discouraged I didn't get her the paperwork she said she needed to give it a shot.  Well, I finally got over my total depression, and with hesitation, I emailed her all the info she asked for.  She called me today to tell me she got me pre-approved.  I'm not going to hold my breath though.  I've gone through so much money this past month what with cleaning up credit that the last guy told me I had to, and the fees that came along with getting a house, I'm pretty tapped out.  I'm hoping I will not have to provide next month's bank accounts before closing; or I'm probably screwed again.

Everyone keeps your fingers crossed!!

Thank you all for all your comments and concerns.  It was much appreciated! 

[DallasLoanGuy]

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timl1987 wrote:
We didn't get a preapproval letter until after our LO sent it to manual underwriting. Is there still a chance we won't get the final approval? Things went sort of backwards for us.. We found the house we liked but didn't make an offer on it because the realitor wanted us to prequalify first.. so we called and the LO sent it to automatic, but it was then denied because of my shorter credit history.. so she sent it to manual underwriting and that took a few days, we sent all the documents that were asked for (W2's, tax returns, pay stubs, bank statements). Then they sent the letter of Approval stating how much we would be able to borrow and the GFE. At that time the real estate agent called us and told us that she had spoken with our LO and we had been approved and it was time to make an offer on the house if we wanted. So we did and the seller's accepted. Now all we're waiting on is the Appraisal and title check. Are we in the clear barring any unforeseen problems with the appraisal? Or is there still a chance we could get denied at the last minute. No changes in my credit report except for a 6 point rise in my Fico and no changes expected either.. besides maybe more points added for paying down credit card debt. Our closing is July 16th and I will be sweating bullets until then. Tim

Message Edited by timl1987 on 06-23-2008 08:56 AM

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there is always a chance.... that they missed something. highly unlikely

but if your file really went to underwriter.... i would bank on it.

[DallasLoanGuy]

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rae2u_112 wrote:

Everyone keeps your fingers crossed!!

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crossed

[Anonymous]

I've got mine crossed for ya!! cross yours for me too!! my file is in manual underwrite now.

[Anonymous]

Fingers, toes and paws crossed over here!

[Anonymous]

To avoid these expenditures & heart break wouldn't it be wiser to request a manual underwrite vs an automated underwrite to start with? Also when sifting through the FHA.org website on approved lenders for my area I'm considering the years they have been in business however if they hire rookies then we really have no way to know until something comes up.....

Btw Dallas - we are back on, seems I over reacted to my DW's Equifax score without checking the TU & EX scores which turned out to me much higher and shouldn't have a problem getting qualified but I don't want to count the chicks before the eggs hatch!

[Anonymous]

Good luck Rae! I hope everything works out for you, also want to thank you for sharing your heart break with us. By hearing your story, it makes us ( speaking for myself but sure others would agree ) more cautious of what to expect and ask of the LO.