Underwriter or Gravedigger? That is the question!
Preapproval letters aren't promises of loan approval...Only warning of the lender digging deeper after the loan application submission!
After my years in the real estate industry, I've heard some really "almost" convincing stories from buyers when their loan application has been denied by their selected lender. They just can't understand why they were denied!
Folks, listen and hear me well; 💀ALL skeletons are dragged out of the closet during a home mortgage underwriting process! You can not and will not hide all the negative, 👹 👻 😈 ugly monsters that are part of your financial persona. It simply can't happen!
The days of lenders using ONLY the information you deem necessary are GONE!
Hopefully forever too!
That is one of the greatest contributions to the mortgage meltdown we just lived through, and are still recovering from.
NO STATED ANYTHING, ANYMORE!
If it's not on paper, it never happened and doesn't exist!
On the flip side, those things that were on paper (late notices, delinquent notices, liens, judgements,etc) oh yes, they exist too and will rear their ugly heads during the underwriting process! 👻If they were EVER there, they still are and will come back to haunt you right when you really don't need them to.
It is SO aggravating (as a Realtor) to walk someone (many times for months) through the home buying process ,(showings, offer negotiation, inspection reconciliation,etc) only to get days away from closing to find out about undisclosed negatives associated with their credit history , now killing the loan in its tracks! 🤬
To avoid all the unwanted drama, just present all your cards right from the start. It's better to get a "no" at the beginning than trying to avoid the inevitable.
Offer up ALL your financial information up front when asking for a preapproval. It saves everyone involved time and heartache!
