Posted on: 17th Jul, 2010 10:28 am
We decided to buy our first home as conventional. My husband is a borrower. He contacted the home mortgage consultant and got pre-approved at $59,000. We offred a house and they accepted us at 55,000, 5% down and escrow $1000.
We paid the appraisal for $400 and the Appraisal Report of the house is 60,000. But the consultant said that "I was more concerned with getting the letter regarding the decline in pay" because my husband get a commision based pay even he works there for 3 years. His credit score is around 750-780. We have no loan at all. We rent apartment for $860 now with his brother and he is also move to our house and pay us for rent.
The question is
1. If they decline us, we will get the appraisal back?
2. Why they gave us pre-approved if we have no chance?
3. If they decine, what else we can do to get a house before closing date?
4. I should tell the processor that my brother in law will live with us?
We paid the appraisal for $400 and the Appraisal Report of the house is 60,000. But the consultant said that "I was more concerned with getting the letter regarding the decline in pay" because my husband get a commision based pay even he works there for 3 years. His credit score is around 750-780. We have no loan at all. We rent apartment for $860 now with his brother and he is also move to our house and pay us for rent.
The question is
1. If they decline us, we will get the appraisal back?
2. Why they gave us pre-approved if we have no chance?
3. If they decine, what else we can do to get a house before closing date?
4. I should tell the processor that my brother in law will live with us?
Though your loan gets declined, as far as I know, you won't be able to get back the fees that you paid for appraisal. Though the lender pre-approved you for a loan, the final credit check will be done just before the closing. If any discrepancies are found, then the lender can reject the loan application. You can contact other lenders and check out if they can lend you a mortgage to buy the property. You can inform the lender about your bother in law and add him to the mortgage, so that his income is also calculated when your loan is originated.