Can a mortgage company to modify their policies if they are already working on a loan?

Deal Score0

DH and I are buying a new home. We signed the contract, etc. We were told we needed a high score of 580 to get the loan. We worked hard on our loan to pay for everything, which of course is off, etc. Now the mortgage co that we rep a center of 600 people having to get the loan. does not really seem fair to us. We must go to settlement on 15.04.2007

  1. Reply
    Faye H
    February 14, 2011 at 10:12 am

    Had the loan been approved? When you say you signed a contract, are you talking about a contract for the house? Usually the final paperwork with the lender isn’t signed until the closing. Hopefully the contract you signed on the house had a clause in it that the purchase was subject to you being able to get financing.

    Lenders are going through record foreclosures right at the moment so a lot of them have tightened up lately on any new loans.

    See if you can find another lender. Talk to a mortgage broker. They usually know who will loan what in your area. Your real estate agent can help get you in touch with a mortgage broker.

  2. Reply
    February 14, 2011 at 10:56 am

    So long as the lender is not being discriminatory in its practices, it is free to revise its lending criteria at any time. given the havoc in the subprime mortgage market, expect lenders to be raising their standards for mortgage origination. Many people on the margins are not going to be approved for loans now that they would have gotten a year ago.

    If however you have already obtained a written mortgage commitment from the lender, that is good for the period specified in the commitment and the lender cannot avoid the loan by changing its lending criteria. That is an enforceable contract, subject to the conditions set forth in the document but at that point the credit issue has been satisfied.

  3. Reply
    February 14, 2011 at 11:52 am
  4. Reply
    James H
    February 14, 2011 at 12:48 pm

    Mortgage info.

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