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I was preapproved for an FHA loan, -- the mortgage broker submtited the package to the FHA underwriters

Asked by looking, 53142 Fri May 16, 2008

yesterday. Is it possible they may still deny me?

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5
It's not over til its over....

Here is some more info on FHA http://getprequalified.com/article_list_mortgage_fha_financing.php
Web Reference: http://getprequalified.com
0 votes Thank Flag Link Sun May 18, 2008
J,

I would ask you how you found your mortgage broker and if you feel comfortable working with them. I would also consider thier reputation and experience. Foremost, loan officers should be very experienced with loan programs and product knowledge. If your loan officer feels you are confident applying for FHA financing I would go for the better judgement that you will most likely be fine in your transaction. The file is in the underwriters hands now, who is most likely very well trained on FHA guidelines.

I agree with the other answers that you should not change your senario, I.E. accumulating more debt.

However, the most important thing is comminication with your lender. Unfourtuantely with mortgage loans nothing is garunteed. I would ask your loan officer questions, like why you are a good candidate for an FHA mortgage? If he answers confidently and back his answers with FHA guidelines that fit your critera I would'nt stress. Don't feel bad contacting your mortgage professional with specific questions- It is their job to know the processes, programs, and procedures like the back of their hand. So therefore I would say stay in contact with your broker.....ask them when you will be approved and if they see any bumps along the way. Ask them about the appraisal. Good luck with everything and I hope you get your loan!!!!

Brent Bester
Mortgage Professional
614-622-8916
bbester@usavingsbank.com
0 votes Thank Flag Link Fri May 16, 2008
J,

You indicated two things. First, at some point you were pre-approved. Second, that you actually have a house under contract and you're moving forward with the loan process. The two are separate events as indicated in the 2 initial answers. Because they are 2 separate events, their approval processes are also different and not totally related.

Your mortgage broker and your agent will often be the best source for answering the question about whether or not the property and terms of your agreement to purchase it, will meet underwriting guidelines. The appraisal that the FHA will request will be an important part of that equation. By law, in nearly every state, you are entitled to receive a copy of that appraisal report, but only if you request it. I highly recommend you get it.

Your morgage broker will be the best source to determine if your own personal financial situation has changed in such a way that FHA might deny the loan. This is easy for the mortgage broker to do and should be something you ask him to check immediately. Technically, I recommend that my buyers request this confirmation before submitting the documents to underwriting. No reason to go all the way through the process, only to find out that your credit situation went down under.

Best of luck,

Jeffrey
0 votes Thank Flag Link Fri May 16, 2008
J:
It may depend on when you were approved, what may have changed in your situation or with the lender. With the recent foreclosure concerns, many lenders and underwriters are scrutinizing applications harder than ever. If your pre-approval was recent, you are probably in good shape.
Michelle is right about not adding more debt. Some soon-to-be homeowners celebrate spring by going out and buying a new car or motorcycle, or getting a bunch of furniture for the new house and getting a loan to make that happen. The new debt can upset credit ratios, and you might find you no longer qualify for the same mortgage.
Stay close to your lender! I hope they have great news for you soon.
0 votes Thank Flag Link Fri May 16, 2008
J,

Unfortunately, loans can fall apart at the closing table.... The Underwriters can deny it. Your pre-approval letter should state the stipulations for which you are approved. Just as a suggestion to you, DON"T go finance anything new prior to closing. Most lenders will run another report on you just before closing. But don't stress over your loan too much at this time, your lender should be knowledgeable in this field and will do everything in their power to make homeownership happen for you... Best of luck to you!

Michelle
0 votes Thank Flag Link Fri May 16, 2008
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