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