Could we lose a pre approval on a mortgage because of a slow week at work?

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We had gotten a pre approval on a new construction from the builder’s lender. We are now about a month away from closing and the lender needs updated pay stubs and bank statements. The only change from the original paperwork submitted is that my husband had a few slow days at work plus had to take a few unpaid days off which meant a smaller paycheck. Things did pick up big time for him but we can only show one “good” paycheck as the other good one will come after we need to have all the paperwork over to the lender. So we’d have to submit a “bad” paycheck and a “good” paycheck. Can this affect our loan? Could we lose the house over this?

I have been Pre-approved for a home loan. I understand that a pre-approval does not actually mean that I am completely approved to receive the loan, but it looks good during the house hunting process. I was Pre-approved by the lending company that I was referred to, by the builder of the homes that my wife and I are interested in. We know which house and what upgrades want, but we are still a little unsure of how this process works. What happens now?

Do we contact the builder and pick our colors for everything and start construction on the house? Again, we are unsure and it is late at night right now so I can’t call and question the lender so I turned to Yahoo Answers once again!

9 Comments
  1. Reply
    loanmasterone
    February 16, 2011 at 4:29 pm

    This could cause your ratios to change. How much they will change might not affect the mortgage loan at all because of the slow work week.

    You should consult with your loan consultant about the short pay check.

    You might need to write a letter of explanation for the slow week and if this will happen again and if so how many more times.

    The underwriter might also want a letter from your husband’s employer explaining the unpaid days off and how they work.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

  2. Reply
    CCC
    February 16, 2011 at 4:31 pm

    Bein pre approved is not being approved

  3. Reply
    Gorgon Medici TR
    February 16, 2011 at 4:48 pm

    Pre-approval is a very iffy thing, and since it is a “pre” approval, you nave NOT been approved, so don’t make any decisions on starting contruction because the whole thing could fall on its face.

  4. Reply
    bcyouletme
    February 16, 2011 at 5:45 pm

    We just did the same thing. Our building company required us to be pre-QUALED for a certain amount before we could secure our lot. We went and picked our upgrades and got our final price. Our lender did a contruction loan for the building and then modified it to a 30 year mortgage when it was built.

  5. Reply
    BillWill3
    February 16, 2011 at 6:00 pm

    If done properly by a reputable lender, your pre-approval for a home mortgage assures you that you can obtain financing to by the home of your choice under one or more specific programs offered by the lender. That is good news! It clears the way for you to enter into a contract to buy the home you desire.

    If you are using a Realtor to assist you, contact your agent and ask him/her to write the contract for you on the home you desire. If you are not using an agent to represent you, you can contact the builder and ask their staff to help you prepare a contract. Keep in mind the builder represents himself and not you! Therefore, to be sure you are comfortable with the terms of the contract and understand it, you may wish to consult an attorney PRIOR TO signing the contract.

    Buying a dream home can be a wonderful experience but you do need to use common sense and understand the documents you will sign. If in doubt, ask for copies and take them with you to review, preferably with professional assistance. Good luck with your purchase!!

  6. Reply
    Doctor J
    February 16, 2011 at 6:04 pm

    Pre-approved means you ARE APPROVED for a specific amount of loan, for a certain period of time. Pre-qualified is different than pre-approved. If you have questions about the loan, call the lender. Because every loan may be different, only the lender can give you absolute answers to your questions.

    The bottom line is you are now qualified for a loan and that puts you in a powerful position to begin negotiating a great price from the builder!

    Best wishes and good luck.

  7. Reply
    loladrewblue
    February 16, 2011 at 6:40 pm

    You are buying a home so contact a Realtor in your area even if the home is being built. They are in the business of buying and selling homes and will tell you how the process works, and what pitfalls to avoid. He or she will be paid by the seller or builder. And please don’t forget to have the house inspected on completion.

  8. Reply
    arealtorlady
    February 16, 2011 at 6:50 pm

    The builder may not be happy, but I would get a realtor to represent you in the transaction if you have not purchased a home before. Your buyer agent can write up the contract and help you select colors and amenities in the home.

    If you are already working with the builder and/or do not want a buyer agent to work on your behalf (there may be an extra cost for a buyer agent if the home is not listed with a realtor), make sure you get everything in writing and agreed to by both you and the builder.

    Keep in mind that if you are using a contract that the builder provides, it is probably very favorable to him, not necessarily to you as buyer. If you don’t have a buyer agent, ask the builder for a copy of the contract he uses. If you have any questions about the contract, then consult an attorney to find out what your rights are within that contract.

    When I am working with buyers, I basically build the house on paper in the contract, stating all preferences (if known). For example, if there is a specific house plan that you like, state that. If there are items that you are allowed to select, then state that within a certain time period (i.e. 2 weeks or 10 business days), you will make the selections from builder’s samples. And once you make those selections, make sure they are in writing and the builder signs that he agrees with them. Getting everything in writing will assure that there are no questions later. Ask for a 1-year builder’s warranty, so that if some things are not done correctly, you can ask the builder to fix them within the first year.

    I would also have a home inspection, once the home is finished to make sure everything is done correctly and is working properly. You would also need to go through the home personally to do a “punch list” of things that you notice that you want done (for example paint touchups, etc.). The items that the inspector finds will also be part of your punch list. The idea here is that everything should be done and working so you can move right in. Have the builder correct everything on the punch list prior to closing.

    The amount you are pre-approved for is the guide for price range of homes that you should be looking at. You are correct that your pre-approval doesn’t represent final approval of the loan, but having that is a good indication that the lender will give you the loan for the amount specified.

    One important thing with the lender is to ask for a “good faith estimate”. This will give you an idea of how much money you will need to come up with at closing and what your monthly payment will be.

    As a real estate agent who works frequently with buyers, I firmly believe in having a buyer agent who will represent your interests in the transaction. If you have never purchased a new-construction home before, you may not know the right questions to ask.

    If you do decide to get a buyer agent, interview several and select someone who specializes not only in representing buyers but also has experience with new construction. Get someone with an ABR (Accredited Buyer Representative ) designation or a CRS (Certified Residential Specialist) designation. Sign a buyer agency agreement with the agent. You may have to pay a little extra for the home, but having a good agent to negotiate on your behalf may save you money in the long run and assure that your home turns out the way you want it to.

  9. Reply
    Helen Peter
    February 16, 2011 at 7:09 pm

    Hello Every body,
    I live in the US and i really have never seen goodness shown to me this much in my life as i am a struggling mum with three kids and i have been going through really rough times in my life and my name is Helen Peters and in all this hard times, a worse incident occured in my life as i lost my job which was my only means of survival and things became really bad as i had bills to pay and my last son suffered a knee injury incurred when he fell from a tree house and the doctors informed me that he needed a surgical operation for his knee so he could walk again and at this point, life was useless to me as i have no family and no one to run to and each night, i will sit down and cry till the break of dun until one day, i read an advert on yahoo answers of man that stated that he could help people in my shoes with loans and in my desperate situation, i had no choice but i had to try and so shocking and suprising, it was like an impossibility becoming a reality, i got a loan of $ 60,000 USD even with my bad credit within 48 hours and my sons surgery was done and thank GOD it was successful and now, i am okay and living in comfort with my kids and i said to my self, i have never ever seen this kind of wonder in my life and i decided i will tell it to the whole wild world and i need every one to thank GOD for Mr Patrick Harvey, the man GOD used to rescue me and my family even when all hope had been lost and gone and i will say to every one, no matter how dark and sinful the world is today, there are still GOD fearing and reliable people on earth and if you are in my former situation or require a loan legitimately, i will advice you contact this loan lender and you can reach him via patrickharvey12@yahoo.com and i want you all to pray for this man for me.

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