Avoid the Last Minute Loan Denial
I see it time and time again - loans falling apart at the last minute
before closing on a home. Whether you are the buyer or the seller, it
can be very frustrating. We get the call that says the buyer cannot get a
loan and everyone asks "shouldn't we have known this sooner?" A
mortgage starts with a loan originator - a lender who runs the numbers
and says a person should be able to get a loan. Then it goes to a
processor - the person who puts all the actual data together - the
income, debt, taxes, job situation, appraisal, and then sends it to the
underwriter. It is the underwriter's job to make sure the loan
application fits all the requirements of the bank and investor.
It is important to have a loan originator and processor who is qualified
and competent to make sure the loan application will pass the
When I get the call that the loan will not go through, I do not give
up. I call other lenders with other loan products. Often, someone else
can get a loan once the buyer has made it this far in the process. But
you have to make sure you have time to start over - that the seller will
extend the closing deadline so you can close the deal.
I suggest you work with a lender that has been to referred to you by a
friend or Realtor. Make sure it is someone you can trust with the
biggest purchase of your life.