Got pre-approved for a mortgage and did final application and I might not get what I was pre-apporved for?

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I was pre approved for 235K on a mortgage. I ended up getting a house for 215K. I did the final application, proved that I have the funds for closing (7k more then I need) and two days later I’m still waiting for an answer from my lender on what rate I locked in at. I began to get nervous so I send an email… I get this reply…
We are limited to just a single investor within our secondary pricing and it will have to absorb some adjustments to ensure we get you a rate with a reasonable price that will also allow us to meet ratios and secure you with a loan approval. I will let you know what they tell me …

Does this mean I’m not approved? It makes no sense that I get a loan 20k cheaper then what I was approved for and I’m getting this ? Did the loan officer screw up and pre-approve me for a amount thats too high?

Any advice would be helpful, thanks

  1. Reply
    May 1, 2011 at 1:32 am

    It means you are about to get hosed. How can you not know what your rate is? You should have gotten a GFE with a rate and guaranteed fees. the letter is gibberish and it means they are about to inflate your rate to pad their pockets.

  2. Reply
    May 1, 2011 at 2:25 am

    His response was jibberish, even to a seasoned loan officer like myself. When are you scheduled to close? You might want to look into another lender. Feel free to email me and I can do a mini application over the phone or email to at least tell you if your ratios are too high. Make sure you are extending any mortgage contingencies in your contract so you don’t lose your earnest money in case he did screw up.

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