I Discussed The Reasons For Getting Pre-Approved For A Loan Before You Start Shopping For A Home
Does getting approved beforehand guarantee that you will get the loan you want. Again, quoting the National Assoc. of Realtors, “Being pre-approved is not a sure-fire way of obtaining a loan either”.
Yes, after you get approved, many things could go wrong before you close on the house. For example, one item would be that you took so long to find and negotiate for a home, that the financial market has changed.
For some other reasons why you could be declined after getting pre-approved, we will look at the rpfunding.com website, particularly “Saving Thousands” with Robert Palmer. He will bring you into the world of underwriters where so many purchases go to die.
What Are Some Of The Reasons?
Number one, failing to disclose past bankruptcies, short sales, foreclosures, or other calamities. Be aware they will find them.
Other red marks include unreimbursed business expenses on your tax return, undisclosed business losses, shopping for additional credit after getting approved, failing to disclose that you or a relative own the company where you work, large undocumented bank deposits (like the TV Show Breaking Bad), drastic change in employment, owning undeclared real estate, loans owed to private parties, failing to mention child support or alimony, buying more property at the same time, any financial secrets that you are hiding, etc. That is a long list.
Ask Any Experienced Loan Originator, And They Can Tell You Horror Stories
In my own case, I have had an underwriter ask me why my 2009 income was lower than 2007 and why income on my Corporate Return did not show up on my Personal Return. Answers: I am in Real Estate for number one and Corporate Income is not supposed to show up on my 1040.
On question number one I knew that the lender had lost a lot of money in the past few years from a news article. So I said that I had not had that great of a year in 2009 but at least I did not lose millions that year, like your bank.
Remember if you have questions, call your friendly and professional DBO or BRE Licensee, Loan Broker. They are ready to serve and help you.