Pre app then decline on loan

It is quite surprising to me that your loan was denied after you were pre-approved for a loan. Usually with a pre-approval, your lender would have run a credit check and reviewed most of the documentation already. Thus, unless there is a drastic change, the loan will go through.

This is the odd thing. My husbands credit is good. Plus we have paid off a truck payment, paid off a credit bill and due to him being a contract engineer they don't like it. It is unreal. We are in the middle of building this house, we paid money to lock in a rate, earnest money, etc.

I'm just in shock.

oops, indeed! it's not unprecedented for a borrower to be declined after having been preapproved; but it is unusual. there may have been a change in the underwriting guidelines in that 90 day timeframe, and that certainly wouldn't be unusual based on what's gone on in the last few years. nevertheless, as a contract worker, if your husband is actually in reasonably stable position, his income ought to have been considered favorably (in my view).

i suggest you shop - obviously quickly - for another lender who'll give credence to his position and take into account all the other positive factors that would also lend credence to the earnings (good credit, ability to have paid off other debt, presumably favorable job stability that can be verified with the company).

Thanks everyone! I found a new lender who is working on everything. It ended up that the decline was due to new laws in the 90 days and my husband has so many w2's to explain. This new lender feels he can go in and discuss with the underwriters and state our case to get a new loan. Thanks.