loan officer allowed me to make offer before seeing tax

Guest

ok i am in a sticky situation the mortgage office i am working with told me to make an offer on the house, and sign the docs. I was already pre approved and he allowed me to make and offer and sign a contract.

now i brought him my tax forms etc.. and he says due to deductions on them i cant get the loan, would need a cosigner or something. i tried my dad but no luck due to he is self employed and has write offs also.

any ideas? i have around $1500 in closing cost racked up already since they did the earnest $ the inspection and also teh appraisal already Twisted Evil

shane · Posted: Fri Oct 09, 2009 2:19 pm Post subject:

When your income doesn't qualify you'll need more income, or less debt payments. The only way to get more income is by adding a co-signer, which it sounds like you've explored, so you'll need to ask the loan officer if reducing any of your debt payments (such as credit cards, car loan, student loan, etc. & possibly even the price of the home you are looking at) will help you qualify.

Not to make an example out of your situation, but it's exactly what will happen if you do not have an underwriter review your documentation before you make an offer on a home. When you get pre-approved, you should ask "Has the underwriter who is going to clear my loan to close reviewed my documentation?". If it's no, then ask for that to happen before you accept the loan officer's pre-approval letter as valid.

Guest

thank shane yes i am a 1st time home buyer so it is really too bad that i didnt know that ahead of time. the guy i am working with has 23 years so you would have thought with him knowing i am self employed and being 1st time home buyer he would have been a little more proactive.

shane · Posted: Fri Oct 09, 2009 3:18 pm Post subject:

That is surprising that they've had 23 years experience and didn't know to review that information ahead of time. I'd ask your real estate agent if you aren't able to get approved for a loan if you'd be able to get your earnest money back, most contracts have a contingency like that.

dvandentop · Joined: 09 Oct 2009 Posts: 3 1.35 Dollars($)

yeah tell me about it, i already have appraisal fee and 500 earnest $ and home inspection fee's racked up

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1735 35.94 Dollars($)

I think you should ahve taken precaution in ensuring that you are qulified for the loan

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