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Mortgage Loan Denied After PreApproval

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Anonymous
Not applicable

Mortgage Loan Denied After PreApproval

I am so frustrated! I got a preapproval and put an offer on a home. The original loan officer did not complete my file correctly and UW had an issue with it. I had another LO within the same company help me and start from the beginning to submit everything correctly. My close date is Aug 3rd. They literally had my file since the beginning of July. They just let me know tonight that they are denying me. I can't even believe this. I don't even know what my next steps should be. My middle score is 646 btw but I have charged off private student loans from 3 years ago and 2 repos from me helping my husband get cars and he lost his job and couldn't pay.
23 REPLIES 23
Mortgage-Specialist
Established Contributor

Re: Mortgage Loan Denied After PreApproval

What was their reason for denying you?

Message 2 of 24
Anonymous
Not applicable

Re: Mortgage Loan Denied After PreApproval

2 repos- young and dumb helping someone and I have charged off private student loans.
Message 3 of 24
Mortgage-Specialist
Established Contributor

Re: Mortgage Loan Denied After PreApproval

They're the same repo's that were on your credit from the start right? Nothing new?  Thats BS

Message 4 of 24
Anonymous
Not applicable

Re: Mortgage Loan Denied After PreApproval

Yup, nothing new on my credit report at all in the past 2 years except all the new inquires from mortgage shopping. I'm out of my mind right now.
Message 5 of 24
newmomnewme
Valued Contributor

Re: Mortgage Loan Denied After PreApproval

I am sorry to hear this....I've been walking around with a pre approval for a few weeks now. Every house I visit is sold the same day....

 

Did you try another lender?

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Message 6 of 24
Anonymous
Not applicable

Re: Mortgage Loan Denied After PreApproval

That was the hard part in the beginning, finding the house and getting my offer accepted! Now that I finally found the perfect house and had my offer accepted, I run into this. I am searching for a new lender but since we are supposed to be closing on Monday. I don't even know if the seller will want to stay in the contract with me at this point. Good luck on your search!
Message 7 of 24
VALoanMaster
Valued Contributor

Re: Mortgage Loan Denied After PreApproval

Hi @Anonymous ,

 

How much info did the lender give you?

For example: Did they mention whether or not your file was approved through an automated underwriting system?

Did they say if your file was down graded once it hit underwriting?

What type of loan did you apply for, FHA?

How do the repos report on your credit? Are they reporting as charged off or in collections?

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 8 of 24
Anonymous
Not applicable

Re: Mortgage Loan Denied After PreApproval

Hi I got approved through AUS. Once I got to underwriting they had the file for a week we had to push to get someone to look at it and I was told the underwriter's management team told her to deny the loan. FHA. One is charged off. The other I thought was charged off as well but it's showing voluntary repossession. I was able to reach a settlement with that one so I'm paying that off.
Message 9 of 24
VALoanMaster
Valued Contributor

Re: Mortgage Loan Denied After PreApproval


@Anonymous wrote:
Hi I got approved through AUS. Once I got to underwriting they had the file for a week we had to push to get someone to look at it and I was told the underwriter's management team told her to deny the loan. FHA. One is charged off. The other I thought was charged off as well but it's showing voluntary repossession. I was able to reach a settlement with that one so I'm paying that off.

Ok. Unfortunately, even though a file is approved through AUS, there are still circumstances where FHA requires underwriters to down grade a file to a manual underwrite. Given all of the risk associated with COVID19, my guess is, this lender just didn't want to "stick" their neck out on your loan. That is not the case with all of us. In a situation like this, I have my head underwriter preview a file to make sure he's good with it & usually get an answer from him same day.

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 10 of 24
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