Black Friday I got my voice mail messages and three of the messages were from home buyers that either got denied for a mortgage after being preapproved and no one was getting back to them or were supposed to close last week.
I’m sure prospective home buyers don’t like being told that they cannot be approved for the purchase of a home, but they would rather know up front before they have something in their hand that says, they are prequalified, put a deposit on a home, spend money for inspections and appraisals and then get denied.
I spoke to each of these prospective home buyers and in each case the stories were pretty much the same and sounded like this.
1) We were supposed to close last week and are now told our income is sufficient.
2) We got a denial in the mail and no one ever called us that there was a problem.
3) They are telling us that we need to take care of credit issues.
4) Our loan officer isn’t calling us back.
I sounded like a broken record, “I’m sorry for those in my business that don’t do what they are supposed to do or treat you this way”.
In these three cases, 2 of them should never have gotten a preapproval at all, as there are issues that need to be resolved. Once the issues are resolved, they will be able to obtain a mortgage. Both are a few months off.
I am taking the mortgage application later today on the last one, I have no clue why their loan was denied in the first place. I did a three way call with the Realtor in order to get an extension on the purchase. When these folks talk to other prospective home buyers, stuff like this hurts all of us in the mortgage and real estate business.
