Just got denied from FGMC. :-(

[FrugalRican]

I know you love the house, but this might be a blessing in disguise.

You're asking lenders to approve you when apparently there are quite a few marks on your credit history, some even as recent as in the last year.

You should definitely take the time to take the information given to you by them and work on it so that this won't happen to you again, or in January, or whenever it is you are going to try again.

These forums provide a wealth of information so that this won't have to happen to you again. Best of luck! I'm sure if you miss out on this house, it's because there is one better out there for you.

[Booner72]

No loan is ever a guarantee until it funds/closes.  SOME loan officers say anything to get you in, just hoping it will work out, but the underwriter has the final call.  If you aren't totally within the guidelines for approval, scores, DTI, credit history, then there is always room for something to go wrong.  Even if the credit part goes smoothly, the appraisal can come in low and ruin the deal, the inspection etc.

It's good to find this forum before starting the process to get ducks in a row.  Those, most of us find it after the fact!

[mwmiller82]

Thanks guys for everything, I love this forum, you all have been a great help, and I believe it'll all will work out with patients!!! Again thank you all, I'll keep you all updated!!

[Anonymous]

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@StartingOver10 wrote:

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@jnkp2001 wrote:

just a quick question.   How can one be preapproved, under contract and be denied? 

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This happens when a lender issues a pre-approval without looking at all of the buyer's documentation.  One example would be the buyer is self-employeed and gives the gross income to the lender when in fact the tax returns of the buyer reflect substantially less income due to business deductions. There are other reasons, but having less income or greater expenses is the typical reason for a buyer to get denied after having an "approval".

IMO it is irresponsible fo the lender to waste everyone's time and effort with a bogus "pre-approval". This is especially problemactic now with some of the large "big box" banks moving to a inefficient mortgage application model where the loan officer is really only an application taker - rather than a true loan officer. (Think Wells Fargo - a huge percentage of their pre-approvals never close IME.) Another abuser of this system is Quicken Loans.

Writing bogus pre-approvals is loan officer specific. In other words, a true professional loan officer will insist on all the appropriate paperwork before issuing a pre-approval. if your loan officer hasn't asked for documentation up front - run away. It puts the buyer in a bad position and it's not like the buyer is going to sneak past the underwriter!

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This is what happened to us.  His exact words were "You are pre-approved with no problems.  You can go buy a house tomorrow."  I would have understood if it had been something he found that we didn't disclose, but the reasoning was not enough recent credit which he could clearly see from my report.

[Anonymous]

How long did it take you to get a denial? Our info was sent to underwriting 7 business days ago, and I am still waiting to hear back.

[mwmiller82]

Great!!
It took 9 days.

[tech14891]

yes i got denied from FGMC so be carful thy told us thy are with FHA but found out thy are not and i was preapproved for 100k loan  the home place we went to got a letter from them thy were not going to loan us any money and said thy wanted more paper work in sted this bank is crooked so watch out go trough FHA in sted no intrest loans from them thats what we are doing 90k loan for about 650 a month with no intrest

[StartingOver10]

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@tech14891 wrote:

yes i got denied from FGMC so be carful thy told us thy are with FHA but found out thy are not and i was preapproved for 100k loan  the home place we went to got a letter from them thy were not going to loan us any money and said thy wanted more paper work in sted this bank is crooked so watch out go trough FHA in sted no intrest loans from them thats what we are doing 90k loan for about 650 a month with no intrest

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There is no such thing as a no interest mortgage issued by an institutional lender. Who are you using to get this no interest mortgage? I would be very cautious if your loan officer is claiming that the loan has no interest. First of all, FHA doesn't issue loans, lenders do. FHA insures the loan if it is approved FHA. Both the borrower and the property have to meet certain criteria to get an FHA loan.

[tech14891]

yes that is true