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svromeo00 · Joined: 30 Oct 2009 Posts: 17 4.61 Dollars($)

Will the lender want the appraisal and then still not approve your loan? I am a first time home buyer and i am suppose to close this thursday. I received the truth in lending disclosure on the 4th of this month. And have not heard anything...Last I did hear was that my LO said that the appraisal was being done yesterday. Is it possible that I still may not get the loan?

jerry · Posted: Wed Nov 11, 2009 3:42 am Post subject:

Hi,

It is possible that you can still be denied the loan even after the appraisal is done. The lender may have sent you the Truth in Lending disclosure and the property may have been appraised, but noone of this means the lender has approved your loan. The lender is under no legal obligation to give you the loan, until a mortgage agreement is signed at the closing. So, till the time you close on the loan, your application can be denied at any point in time.

Thanks,

Jerry

svromeo00 · Joined: 30 Oct 2009 Posts: 17 4.61 Dollars($)

well why would the lender want the appraisal if they may still not even approve me? Its brand new construction by the way.

sonjakracine · Joined: 24 Oct 2007 Posts: 77 15.05 Dollars($)

There are two parts to the approval process. One is to approve you and your ability to repay. The other is to approve the property and confirm its value. Not enough value in the home, then no loan no matter how good your finances are.

Posted: Wed Nov 11, 2009 1:19 pm Post subject:

well since the lender wants the appraisal...does that mean that my part has been approved and now the house just has to be approved? Would they still want the appraisal even if i wasnt going to be approved? that wouldnt make since

gmakerley · Posted: Wed Nov 11, 2009 3:17 pm Post subject:

the lender, in all likelihood, has determined that you are qualified. at this point, in order to assure that the value of the home is sufficient for the loan amount you requested, they must do an appraisal. if you're posting a query here on tuesday with an expected closing date of thursday, and the appraisal hasn't been done, i think you better rearrange your schedule, because thursday looks like it's out of the question.

if the home as appraised is found to be inadequate, then they can deny your loan. with new construction, i doubt that would be the case. builders have enough sense not to try selling homes for far more than they're worth.

i think you're overly worried about the approval process, but i think you've given them too much credit in thinking that they can close your loan (as of now) on tomorrow.

Posted: Wed Nov 11, 2009 5:11 pm Post subject:

Thanks George...and I have the closing date changed to next monday. I was told today that Wels Fargo has sent my loan package to USDA. That was sent Yesterday. Also was told that USDA will take about 3 days. So I assume wels approved me and I just have to wait for USDA final say

gmakerley · Posted: Fri Nov 13, 2009 10:46 am Post subject:

let's pray your assumptions are correct. but it looks that way.

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

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