Is There Anything That Could Go Wrong?

[Vegas247]

Is There Anything That Could Go Wrong with an offer that was accepted by the seller in buying a home? Example: Inspections, loan not going through,......what are the chances of the loan not going though if the buyer was pre approved 2 months ago?

[StartingOver10]

No one here knows your situation. Some pre-approvals are better than others. Depends on who issued the "pre-approval" and what documentation the LO or underwriter examined.

If you got a pre-approval from Wells Fargo or other big box bank, for example, they have a high fall out rate depending upon your LO. Or if you went to someone that issued a preapproval and they failed to collect your paperwork or didn't pull your credit, then the odds are unknown.

But if you went to a mortgage banker and supplied all of your information up front (w2's, tax returns, paystubs, bank statements, lender pulled credit reports etc) the fall out rate is low IME.

Who issued your pre-approval?  Did you supply documentation or was this a verbal over the phone type thing?

[Vegas247]

It's not for me, I have bought several homes in the past...this a home for my brother in law...it was a mortgage company, not a big box bank like Wells

[TimeToRecover]

There is a big difference between a mortgage banker and a mortgage broker.  which was the pre-approval from.

also all sorts of things can happen.  

house doesn't appraise

to many things found at inspection and the seller or buyer don't want to fix

old lien the property being bought is found or a lien on property the buyer had in the past is found (title search fails)

buyers do something stupid like opeining 10 new credit cards or buys a houseful of new furniture 3 weeks before closing

buyers loses/changes job before closing

buyer or seller fails to meet any conditions lender sets

just some I can think of off the top of my head.  Basically always remember nothing is official until all the T's are crossed and the I's are dotted and the keys are in hand.

[Anonymous]

I agree with StartingOver and TimeToRecover.

This is a very open ended question, without knowing specifics no one can forsee what may or may not happen with your brother-in-law. Yes homes sales fall through every day for many reasons. Even the best prepared buyers may find they are not approved at the last minute. This board is filled with such horror stories.

[Kayann]

I wonder the same thing.

I had a offer accepted end of September. I turned in all my verification of income, assets etc. now waiting on apprasial. 

I would like to give my apartments 30 day notice by end of Oct because I have a estimated close of middle of Nov. Since the holidays are coming I don't want to have to pay a extra month of rent if I give notice after closing. My LO says I should be ok to give notice in a few days but I'm nervouse since apprasial isn't back. It's a VA loan as well.

[Anonymous]

I am curious why the guy said there is a big difference between a Mortgage Banker and Mortgage Broker?

 

[TimeToRecover]

Big difference is because of what is behind that pre-approval.

typically from a mortgage BROKER there is a pre qualification not a pre approval.  And they both carry less weight

a mortgage BANKER the pre-approvals have been thru at least 1 round of underwritting.  Many mortgage bankers now offer for the whole file to be fully approved pending only the condtions on the property choosen.  

For example my mortgage banker that I am using will fully approve someone pending address and will allow the buyer to make an offer equivelent of a cash offer and can close as fast as 7 days.  

you hear horror stories of mortgage brokers promising and providing pre approvals and when it comes down to securing the loan they just can't close as they aren't underwritting the loan.

I do see your id is MNmortgagebroker.

This is nothing against your profession.  Just the point that a Mortgage Banker can do their own functions as well as those of a Mortgage broker but a Broker cannot do the same as a Mortgage banker.