How can you be approved for a mortgage and then denied right before closing?

Deal Score0

We applied and were approved for a refinance on our mortgage. The day before closing the underwriter says that the expenses we claimed in our tax return last year(approx $ 20k) were to be deducted from the income and therefore the ratio was off. I’ve never heard of this. I assumed that this
would have been looked at before approving the loan. Does this make sense? So I faxed the broker the last paycheck stub for 2006 that showed the total expenses reimbursed for the year were $ 9300. Shouldn’t that be considered and offset the expenses paid out. Does anyone know what to do in this case?

3 Comments
  1. Reply
    General Custer
    April 29, 2011 at 9:27 pm

    Did you have a written commitment or just a preapproval? Sometimes what borrowers consider as income is not the same as what the lender does. Maybe the loan officer made a mistake and is now trying to cop out. You can complain to his regulator.

  2. Reply
    motherofthree
    April 29, 2011 at 10:02 pm

    Due to the high level of recent foreclosures, banks/lending institutions have tightened their lending criteria. It is also possible that the loan officers accounts were audited by a manager and the oversight was seen.

  3. Reply
    Casey C
    April 29, 2011 at 10:25 pm

    There are lots of innept people that work in this industry. If you like, I can go through your information and see what’s really going on.

    You’re correct, this issue should have been found within a week of you delivering your paperwork to your loan officer. Once he forwards it to an underwriter it may take them a couple of days to verify it, but your loan officer should have the skills to see any problems before they come up.

    you can email me casey.x.casperson@chase.com or visit my website caseycasperson.com for my contact information.

    I can usually turn deals within 2 weeks. I hope that will work for you. By the way, I work for Chase and am licensed nationwide.

    Leave a reply

    Register New Account
    Reset Password