Automated approvals do not verfy the information you provided so you were only pre qualified. The next step is the verificaton phase to get you a loan commitment or pre-approval; that's when all the information you provided is checked out. So there must have been something in the information you provided that did not satisfy the underwriter.
I have also seen underwriters reject applications due to home conditions of either the home being sold or being purchased due to issues that may be relevant to the loan product being used.
If you are now with the local Wells Fargo they will do the best they can. You can see my interview with him about the pre approval process by visiting our web site http://www.keene-team.com and click on Videos. Go luck . John Keene
, Broker Owner
It would appear that the reasons for the underwriter denying your loan would be vital information. We recommend making a concerted effort to access this information. It may help you to avoid another disappointment.
There are any number of reasons why an underwrither may take a position of "denial" .....it's important that you seek this clarification.
All of the details then have to be documented by a underwriter before the loan is formally approved, conditioned or rejected.
It is possible that the information input originally was not correct, or mis typed. It is also not out of the realm of possibility that the guidelines changed in the short time between one lender and the next.
Also - underwriting is as much an ART as science. One underwriter may take a completely different approach than another. I hope this makes some sense!
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Licensed in Maryland, Virginia and Washington, D.C.
Assisting Homebuyer's and Seller's for 28 years