Posted on: 31st Jan, 2009 06:33 pm
can a lender refuse to lock-in rate after receiving a full application and pre-qualifing/approving the borrower?
Hi metsam,
Welcome to the forums,
Even after a loan is prequalified or preapproved, the lender can refuse to lock in the rate or deny your loan. This is done if the lender finds that you or your property does not match the qualification standards. The lender actually appoints underwriters to review loan applications. The underwriters analyze the borrower's income details, liabilities, property details etc and then gives the final approval to the loan. If the underwriters find that the borrower isn't qualified enough to get the loan, the lender would not agree to lock in the rate.
Have you been denied a loan? If yes, then ask the lender as to what the reasons here. Then you can work upon those factors for which your application has been denied.
Take care
Welcome to the forums,
Even after a loan is prequalified or preapproved, the lender can refuse to lock in the rate or deny your loan. This is done if the lender finds that you or your property does not match the qualification standards. The lender actually appoints underwriters to review loan applications. The underwriters analyze the borrower's income details, liabilities, property details etc and then gives the final approval to the loan. If the underwriters find that the borrower isn't qualified enough to get the loan, the lender would not agree to lock in the rate.
Have you been denied a loan? If yes, then ask the lender as to what the reasons here. Then you can work upon those factors for which your application has been denied.
Take care
One other thing to mention is if the lender did not receive the documents to support your income and asset claims, then that would be another reason to hesitate to lock you in.
