ON Canada, lenders would check employment prior to closing to confirm if you still have a job. The pre-approval may have been issued to you 3 months prior your actual loan application and your financial consideration may have changed by then. This is standard procedure and is practiced by all lenders I deal with.

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My mortgage broker has told be that i am pre qualified for a home loan. he has told me what my interest rate will be. i've found a home, but know i should be asking more questions before closing. can anyone help? i don't want to get to closing and find out i could have done something to improve my interest rate or even worse cant close.

You need to see the LIST of conditions for the pre-approval and if you can't meet any of them, you need to have a talk with your loan officer immediately. ALL pre-approvals have conditions. There is no reason why he can't provide that for you. Remember that a pre-approval and a pre-qualification is not the same thing....a pre-qualification is only income/debt ratio qualified...sometimes they don't even pull your credit report, and that isn't even remotely related to your ability to close. If your broker can't produce that list in 48 hours, then you need to see another one.

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If a mortgage broker ran credit and preapproved a buyer for a usda loan based on credit and lender guidelines, and now he says the lender won't give approval because of a collection that is on buyer's credit, isn't he negligent?? it is from 2004 and is claiming he didn't see it on credit report when he approved the buyer!! shouldn't he be held accountable??

No. It's a stupid mistake on the brokers part, but legally, he didn't do anything wrong. Preapproving is not the same as actually being approved. Preapproving is a quick estimate to see what you can purchase. Nothing is set in stone with a preapproval and circumstances can change.

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Should my mortgage broker have given me a good faith estimate when i was preapproved for a mortgage? or, should i recieve one after i put a bid on a house? i have found a home that i want to purchase. now i'm wondering about the costs of the loan. is that something that you find out after the offer is accepted? any help will be appreciated!!!! thanks, and have a great day!

Dont use a mortgage broker!!! It will cost you more. Know this. You will be charged the broker's fee and the banks fee. DONT DO IT. You get a GFE when you actually have a house to purchase and apply for the loan but you can get estimates and offers frmo the banks before you fill out the application. Even during the process you should keep asking for offers from different banks to force your bank to go down on the cost or interest.

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I am preapproved for a mortgage. my mortgage broker told me that when submitting my application for a mortgage to lenders that cmhc denied my application because of being late on a bill payment this year but it is paid . so my mortgage broker has sent my application to 2 other loaners and we are waiting for a reply from them. he has written in letter that i have paid this amount that was owing etc. so i am wondering if you have ever had a lender deny your mortgage while another has accepted you loan mortgage? hoping for a positive happy ending and i am stressed.

" am preapproved for a mortgage" - pre approved essentially means you OUGHT to be able to get X amount. It doesn't mean you actually will.

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We know a mortgage broker that is also a builder and a friend of the family. we went to him to get us preapproved for our mortgage loan, etc. after telliing him we were having trouble finding a home we really liked he said that he had a home for sale on the side of town we were looking at and that we could look at and if we liked it we could work something out. we looked at the home and loved it. now we are in the position where not only is he working out our loan, he will be selling us a home. we are first time home buyers and very cautious as to potential errors we could make and what type of gain he is getting from doing all of this? we really don't want to be screwed but we don't know enough about all of this to know the difference and i'm afraid he will take advantage of that fact. any advice? any questions we should be asking? he has told us he will pay all closing costs, get us a 5% - 30 yr fixed rate, no points. any advice is greatly appreciated!

The loan terms are good. 5% at 30 years is strong and him paying closing costs is good. The main thing I would be worried about is home price. He knows what you are approved for, so he knows how much you can pay. I would maybe your own Realtor or even an appraiser to verify the market value on the home. But working with these types of people in my job, they are in a position to take advantage of you, but if you find an honest person, they can also get you a great deal. Because they do so much themselves, they can make concessions on certain things because they are getting so much of the deal that normally get's spread around when different people are doing everything. I have a few clients that really give some people some sweet deals, but they are very honest people and have great reputations. So yes, he is in a position to screw you over, but it doesn't necessarily mean he will. Just check on the value and condition of the home and that should put your mind at ease a little bit.

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Lender requires that we submit our offer to our real estate lawyer and not submit a good faith deposit right off the bat. the banks are "tight" when dealing with these types of transactions and our broker wants to protect us from losing our money since theirs no realtor involved. how do we work this? is there a way to negotiate with the seller so they know we are serious (pre approved) however have to follow the lenders rules to receive our mortgage? any ideas on how to put this concern on the table?

For Sale By Owner transactions are done all day, every day, by banks and are not treated much differently. Sweetie, your broker is filling your mind with a risk that doesn't exist...there is nothing complicated by your transaction. While it is normal and customary to give the earnest money to the listing agent's broker, there is NO RULE that says it has to be the listing agent....it can be YOUR agent's broker...or the trust account of an attorney representing the seller. How the earnest money is handled from there is regulated by state law...it cannot be released without the consent of all parties involved REGARDLESS OF WHO holds the funds...trust accounts are legally protected....the only thing you would not do is give a person, an individual the earnest money because they don't have a trust account. I find it odd, very, very odd, that your Realtor doesn't know how to handle a FSBO transaction. Sounds like someone that is inexperienced to me. Very inexperienced. PS: If you do not have a licensed Realtor involved in the transaction...then a real estate attorney can do the same thing...Kempark is very incorrect. The only difference is that a real estate attorney isn't going to help you negotiate a price, repairs, work you through inspections, etc.

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My loan officer for the 2nd time has approved me for a loan and it failed. the 1st time we moved in on her word we were closing on such and such date. on the way to the closing i recieved an email the deal was no longer. no reason why? then she quit her job. leaving us in debt with the seller. this time, she sent the gfe and the preapproved letter and told us to put down the earnest money. we were suppose to meet with her 2x's this wk and she never showed either time nor did she call. we are suppose to close this wed. or we lose the earnest money and are homeless with a 1 yr old. what should we do?please help?

Most of the answers so far talk about filing claims and that might sound nice but it won't protect your purchase and your deposit which is what your question was. I would: - Talk to the broker/owner of the mortgage company. If you were approved for a loan, another person in the office can take over and finish it. If you weren't approved, the broker can discuss your options with you. Even if you didn't have a real loan yet, you can most likely get approved within a week. - Talk to the seller. Explain what happened, how you acted in good faith, that you want to buy the house, you are doing everything possible to make it happen as quickly as possible, etc. You should do this through your agent, if you have one. If the seller is flexible, they might be willing to delay the closing for a few weeks so that you can get a new loan. - Yes, it is certainly possible to move in to the new house before closing; it's called being a "renter" :-) We also call it "tenant in possession." Likewise, it is also possible for the seller to stay in the house after selling; it's called "seller in possession." These are not always the best choices, but they do happen and there are standard real estate forms for these situations. - If the seller cannot/will not accommodate you by extending the escrow so that you can get your new loan, they still might not automatically get your deposit money. In California, for example, I've never had a buyer lose their deposit money even though one or two have had to back out after removing all contingencies. The trick is this: In order for the seller to keep the deposit, they need the buyer's agreement to release it. The buyer, not wanting to lose the money, sues the seller (cost: $1000) and files a "lis pendens" which means that, not only is the seller being sued, they cannot sell the house either! The seller, wanting to sell the house and not tie it up in litigation for several months, will cancel the purchase contract and give the buyer their money back in return for dismissing the lawsuit. This is not really fair to the seller, but it does work and any real estate attorney will do it this way. - Talk to your current landlord about extending your stay for another 30 days. - Document what happened so that later, when the dust has settled, you can file a claim against the loan company. If you get to that point, ask a question here again and you'll get plenty of help. There are so many honest mortgage people out there, don't stand for this crap. Get referrals to a good real estate agent and a good mortgage broker, and you'll do fine! Good luck!

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I got preapproved for a mortgage, found the house, signed the purchase agreement and i waited 15 days to get approved. my mortgage broker said that everything is okay however i am worried that this process is taking too long. my credit score is 705 and i am putting down 10%. i am self-employed and i cannot provide pay stubs only bank statement. should i be concerned?

You probably are going to have to provide more than bank statements to prove your income. Have you been asked to provide two or three years of tax returns? That is more likely.

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Should i even be charged a fee? i have bad credit but was pre-qualified for a mortgage by lending tree. the broker said he was sure i could get preapproved and the fee would be 99.00 and i would not be charged until i was preapproved. so i paid him after he re-assured me he would not charge my account until i was preapproved. while i'm waiting on some paperwork to come in the mail, i notice that he already charged my account. i call him and now he says that i will be approved as soon as i send him the paperwork. the paperwork won't come in until next week. is it legal for him to charge my account?

Sounds like he's already lied to you and you have your own answer there. If he's shady up front he will probably be shady on the back end too. Bail on him, and move on. Each broker is different. Some charge fees up front, some don't. True story: Customer applied for a loan and when asked what their house was worth they said $150,000. Broker submitted loan for preapproval based on this information. They got the preapproval and sold the customer. They then ordered the appraisal out of pocket (typically up to $400 or more) and got a value of under $100k from the appraiser. This killed the deal and then the customer did not want to pay for the appraisal. Most homeowners think their home is worth more than it is..but this is an example of why some companys charge fees. Imagine if you had to pay a credit report (up to $40) and an appraisal ($400 or so) on every customer you got and then only closed 1 in 10 (an average in the industry). Talk about losing money. Anyway, these are typically negotiable points. Better credit naturally buys better terms. With bad credit expect some less lenient guidelines...that's reality in the industry. I would try to find a broker that wouldn't charge me fees up front, but maybe would make you pay the appraiser directly at the door when he comes to appraise the property. Then you can keep the appraisal but don't pay other fees and the broker also is not on the hook if you don't get qualified or decide to go elsewhere.

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Hello, this july we are closing on our condo. the condo is located in chicago and we bought it for $370k. we make a little over $70k together a year. we pay our cc bills each month and in whole. we are putting more than 20% down to avoid pmi and to give us some equity if we choose in the future to buy more property once our salary increases. we will probably put down

1- You are looking at a rate of 6.25% in IL. I ran it through Provident Funding as a 30yr fixed, full doc, 80% LTV/CLTV, second home, $288,000 loan amount, with a 21 day lock period. This assumes all the information you supplied is accurate, and that your DTI (debt to income) does not go above 50%. That is a rate that the mortgage company would be ok with selling you. If you are being quoted higher than that, then feel free to talk to me and I will let you know if you are getting a fair deal or not. 2- Your Mortgage company can usually get you at least as good of rates as your local bank, unles you typically carry a very high ballance with them. You would be surprised ... you Mortgage Company is propbably signed up with your bank to do loan through their wholesale side, as opposed to your retail rates they would offer you direct. 3- When a good time to go through with it is completely up to you. If you are in a situation where you can offord it, and are comfortable with it, then do it now. No one can make that decision but you.