You’ve picked out your home.
You gave the sellers a deposit.
You paid for the appraisal and the inspection.
The lender says they just need a few more documents.
Your loan closing is less than a week away.
You’ve done everything right.
Then it happens.
Your lender tells you the last documents you sent it won’t work and they won’t be able to do your loan.
In other words, they’re turning you down.
You may lose your deposit and your appraisal money. Not to mention quite a bit of sleep due to the giant stress ball you were just handed.
Do I Actually Have a “Loan”?
Several times a month we get what we refer to as “save the deal” calls. These are calls from people who thought they had a loan approval and found out at the 11th hour that they’ve been turned down.
About half of the time we can save their loan because we’re so amazing!
We know how to package a loan, find additional supporting documentation and get loans closed that others can’t.
However, the other half of the “save me” people are in a bad spot. We can’t save the deal because there was never a loan to begin with.
The worse part is these people didn’t realize that all they had was a pre-qualification.
How to Avoid Getting Your Loan Approval Yanked and Losing Everything
There are 2 ways to avoid falling into the “can’t be saved” crowd:
#1 – Understand the differences between a pre-qualification and a pre-approval
A prequalification is just that…a qualification. It means nothing.
A pre-approval is what you want BEFORE you go house shopping.
What’s a pre-approval you ask? It’s a written loan approval means your documents have actually been provided and analyzed.
A pre-approval means your lender should have asked for all of your documentation, reviewed it, and approved it!
Once you have a real pre-approval, THEN you can go house shopping!
#2 – Start off with The Weeks Team in the First Place
This might seem self-serving, but really it’s not.
Borrowers who START with us don’t get their loan approvals yanked the day before their scheduled closings.
We want you to understand WHY things are happening so you’re prepared.
Also, we believe in daily communication throughout the process, so there’s no surprises.
The bottom line is this…
Avoid the temptation to seek the instant gratitude of a “pre-qualification” and go with a lender who’s going to evaluate all the paperwork and give you a real loan approval.
Please pin this to your fridge or share with a friend who needs it…because together we can change the world one loan at a time!