anyone ever get denied

[cinderwannabe]

a mortgage after being preapproved? My husband and I are selling a house. It is in contract. I booked a trip for me and DD to go to wdw (my husband doesn't go with us), I told him that if the house doesn't close for any reason then I won't go. It's a second home and we would need to cover the mortgage so I wouldn't be able to spend money on a vacation. I am so worried now though that the buyes mortgage won't go through or something is going to fall apart. My DD doesn't know about the trip but I will be really upset if we can't go.

 

[DVC~OKW~96]

I know of someone who did not get the mortgage, although they were pre-approved and the house was built (newly built home) because when it came time to finalize things, they had bought a new truck. That skewed their debt load and they were denied in the end. (The realtor told us about it when she was showing the house to us).

 

[cinderwannabe]

Oh gosh! Bet they regretted that purchase! I hope that mortgage brokers warn against this. I remember being told to not even open a credit card while waiting on my mortgage.

 

[bumbershoot]

I remember being told to not even open a credit card while waiting on my mortgage.

My brother (who has bought/built 3 homes so far) has let us know that when it's time for house-buying, that we are not to do something like open a Sears or Home Depot CC until AFTER the house is ours...people do that to buy fridges and stoves, etc, and it messes it all up. Get the credit lines *after* the mortgage is a done deal.

 

[disneychrista]

Other than opening lines of credit, loss of job would be another reason that one might not get a mortgage, after being pre-approved.

 

[GOOFY4DONALD]

Not just opening new cards. We were told not to charge big purchases on our existing cards until after we closed on the house.

 

[rascalmom]

The other issue would be if the property appraises too low....but as the seller, you are hopefully already aware if that could be an issue.

 

[cinderwannabe]

Oh thats a good point. We listed the house at exactly what the realtor suggested so hopefully we are covered! It is really stressful selling a house but even worse when Disney is riding on the sale!

 

[drinkme]

I personally know of two couples this happened to last month. Both times it was over something the loan officer didn't know beforehand. Both of these were separate cases, and different loan officers, so it wasn't like the 2 couples had the same person working with them. The first couple found out they weren't getting the house just a few days before closing; the second couple found out the night before closing.

I think it's much harder to get a mortgage now. If everything isn't absolutely perfect by the day of closing, then there won't be a closing.

 

[DawnM]

If you need the house to close before you go, I wouldn't be booking a trip just yet.

We haven't personally had any issues, even with refinancing, but we know SEVERAL who have had issues right up until closing. We keep hearing of more and more stories of people not closing.

 

[Swimalie]

I know of someone who did not get the mortgage, although they were pre-approved and the house was built (newly built home) because when it came time to finalize things, they had bought a new truck. That skewed their debt load and they were denied in the end. (The realtor told us about it when she was showing the house to us).

When we bought our 2nd house, our real estate agent told us the same thing as we were off to buy our new car. But we didn't affect the mortgage because we paid cash for the car.

 

[BellePrincessBelle]

People buying our house were denied the day of the closing. They found out that the husband owed back child support.

 

[angwill]

It happens often lately and nobody should count on a sale till after closing or fear being dissapointed. Sorry to be the bearer of bad news.

 

[seashoreCM]

The seller will find it useful to have a checklist of questions to ask the prospective buyer to cut down on the chances of a known but unexpected condition from making the sale fall through. For example, "Do you have an upcoming purchase of a car?"

A good buyer's real estate attorney will push to have the financing contingency clause effective until closing. Meanwhile a good seller's real estate attorney will push to have the financing contingency clause end sooner, for example upon issuance of a commitment letter by the bank.

Now if the seller lets the buyer go into the house and do work prior to closing, the work has to be left behind if the closing does not happen.

* Yes, your own attorney, not just the one listed in the closing documents, is recommended for both buyer and seller.

 

[HayGan]

My husband is a mortgage broker and I can say absolutely that it happens (and unfortunately happens quite frequently.) There are so many issues that can come up through the process that can result in the loan being denied.

Personally, I wouldn't book a trip that it is contingent upon the closing.

 

[LadyBeBop]

It happened to us as sellers of the house.

Did not find out until the day before the close that the buyers lied on the loan application. The husband was out of work, yet he listed his former employer. Right before the close, the bank attempted to verify employment.

Major sucked for us, because there was another offer when we accepted this one. We contacted the other party, but they already bought a house. Our house stayed on the market another two months and we ended up selling it for about $10,000 less.

 

[cinderwannabe]

I can't even imagine deals falling through the day before! That is so horrible on both ends. I wasn't even thinking of that as a possibility. I was more concerned about the loan getting approved. I have enough money for the trip, that is not the issue. I told my husband though that I would not go if the house doesn't sell. I already booked the trip but I made sure that I could be refunded the deposit. I am waiting to book the airfare though because that is not refundable. If I don't go this year I will go next year but I will still be really upset