CAN A LENDER PRE-APPROVE A HOME LOAN THEN SAY YOU ARE NO LONGER APPROVED?
Well this is what happened to me. I was pre-approved for a home loan. I got a real estate agent and began looking for homes. About 2 weeks later they called and told me I was no longer approved because of new guidelines. They said that my credt score needed to be at least 600. But if he new that all along why did they approve me in the first place and have me waste my time looking for homes. Then I received a letter about a week later saying my loan was cancelled upon my request. Which is totally false. I would never had called to cancel and why would the letter say that if he told me I wasnt qualified anymore. And no I was not pre-qualified. I was pre-approved and was sent the letter to prove it which I fwd to my real estate agent. Can they get in trouble for this? I'm going to call the manager real soon. What should I say? I want to sound like I know what I am talking about.
- KamalLv 41 decade ago
Usually they send you a pre-approval letter, but with some conditions. and that is how they can legally get out of it, with no problem. Not fair, but they do that all the time. I am a real estate agent in Miami, and I encounter such a problem often. Question, is the house or apartment you are looking to buy Fannie Mae approved? because if it is, you MAY still qualify for an FHA loan with low credit score, if you are a first time buyer, and if you do not have any credit loans that you have defaulted on. I said may, because they have some guidelines,. For example, you mortgage amount cannot exceed 33% of your salary.
- seabergLv 43 years ago
look on the words offered on your Pre-Approval settlement. If the lender violated the words then you definately've reason for action. Your state banking regulator may be waiting to assist based on who the lender is. additionally please notice that the call Pre-Approval is deceptive it does not assure the lender will undertaking a private loan and you may desire to ascertain the words.
- MadManLv 71 decade ago
Yes they can.
BTW, if your credit score is less than 600, no one will give you a mortgage.
- 1 decade ago
I would go to another bank.