However if you have already cancelled this purchase, then like Robert Chomentowski said, on your next pre-approval make sure it goes all the way to the underwriter. For your own information FHA financing permits debt ratios up to about 56.99% get approved, and conventional cuts off in the 50-55% range (most lenders won't go above 45% though). If you have a VA mortgage as an option then with a low down payment it usually is the best option.
This goes to either your income or your debt. For example, you may think you earn $3500 per month, but the way the bank calculates, it may be only $3200. You may think your debts are $500 per month, but your credit report shows them as $750. Between the two you are $550 off.
The solution is to either prove more income or less debt. Less debt may be easier if you have statements from each creditor showing a monthly payment different from what the credit report shows. Your loan officer can go over both sides of this with you and work toward a possible solution.
I wouldn't jump ship on this lender just yet, get information from them and counter it with better information if you can.
You do not get pre-approved for a certain sales price, you get pre-approved for a certain payment amount, i.e. if the payment on a $120k home is cheaper than on a $110k home (say for example the property taxes on the $120k home are cheaper), and you have the down payment to purchase a $120k sales price home, then you should be able to qualify for a $120k sales price.
I see you are frustrated, but you are going to have to get clear answers or the issues with USAA have a better chance of repeating themselves with a new lender.
It happened AGAIN!!!!
We called the bank, we told them we wanted to buy THAT house , (the same one that we were approved for before),and to let us know and since they had all our info. and the house info (taxes, ins. etc) how much we could offer for the house.They gave us a $ amount,so reluctantly (it was way to low) our R.S.Agent presented the offer, and, it was approved, whatever USAA, denied us the loan AGAIN!!!!....... WTF???!! What are we doing wrong? This is ..... CRAZYYYYYY!!!!
We did get an e-mail denying the loan, but not anything official because of the Holidays???!, that's why I wanted to vent and to find out if there's anything we can do to contract what we will be receiving next week . Like I said, we were pre-approved, didn't incurred any debt after that and been in touch with the mortgage people to make sure everything was going OK...the sudden denial is very strange... :(
We did NOT incur any new debt, actually we had some medical bills that we paid off after the loan was pre-approved, so that it's not us.... I kind of wish it was, so I could understand, but right now, I just don't know what to think....
We're also working with USAA, that should be good as far as military people is concerned but not in our case I am afraid.
What can I do better next time?
PS. Sorry about the bad English "where/were" I am just too upset to think :(
I guess I am frustrated and trying to understand why this would happen when we where so careful to do everything right.Now we not only lost a house, have 4 kids heart broken, but also lost money that we can't ever get back.... :(
Pre-approvals are often based on your application data and your credit report. The credit report may be one to three months out of date, showing higher balances than may be accurate with higher payments. Your application may not reflect "bank math" on issues like your income or payment schedule.
Without knowing why you were turned down, it would only be speculation to say why. Your data may be incorrect; your lender may not have prescreened your application very well.
Ask your lender for a reason, discuss it with your agent and decide if you want to try another more responsive lender.
They have to give you a reason,
something that you could do something about.
You would seem to have three choices;
Change your OFFER to $107,
Find a $107 house, or,
Find another Lender.
Good luck and may God bless