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Can my loan be denied now that the loan was approved and papers were signed?

My husband and I are co-borrowing and he made late payments that affected his current credit by amber_lee0102 from Newark, New Jersey. Aug 15th 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Most mortgage lenders will re run your credit just prior to funding your loan to be sure didn't take on any additional debt, or to be sure you are still current on your other obligations... so yes.. if they re run your credit, and they see delinquent payments, then it could cause your loan to stall or even be denied.. also keep in mind that the credit report will only show late payments greater than 30 days... and it sometimes takes 2 to 3 weeks for the credit report to be updated.. so, it's possible that those late payments wont show during the final credit check.. that being said, if you know his score has changed and it's a result of his late payments, then you already have your answer.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Aug 15th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,970 contributions

100% absolutely... there is no guaranteed loan approval of any kind until you are sitting at the closing table. What 99% of people do not realize is there is something called LQI (loan quality initiative). I won't bother you with the details, but it simply means that a lot of applications will have credit re-run within just a few days of closing. If there is new data, it can affect your loan. I personally have a file like that right now. When we just re-pulled credit, a brand new judgement showed up that wasn't there before. Only way for this person to close now is to pay off the judgement. www.MNRealEstateDaily.com

Aug 16th 2013
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Your loan was provisionally approved. It also states in all of that paperwork, that any significant changes in the information such as a loss of a job, change in credit, or any other circumstance that affects the loan process could negate any approval. Your credit could have been borderline and when they re pulled the credit it went below the acceptable score. I can answer more questions, just email me at: mhulteen@advisorsmortgage.com, I have been a senior loan office with the company for over 11 years now. Our base is in New Jersey and we are licensed in several states.l

Aug 15th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Credit changes just prior to closing can change the approval.

Aug 15th 2013
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Victor Navarro (Victor)
#888 ranked lender in California - 13 contributions

Approvals or denials are issued based on infomation reviewed, changes on the information will change the approval or the denial

Aug 15th 2013
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Ernesto Marez (Ernesto)
#68 ranked lender in Maryland - 137 contributions

unfortunately ...yesthe lender will pull credit at origination and again prior to settlement,they need to ensure the buyer's still in the same porition or a better position prior to settlement.what are his scores now and before the late payments?was it on a mortgage ?you can get some lates removed, but really depends on the circumstances and the type of accountsemarez@thefederalsavingsbank.com

Aug 15th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

Yes, All information have to be re-verified prior to closing. Any changes can effect you approval. I work for Sun Ban in New Jersey. If you want to discuss it, please contact me: Jim Mazzola 732-501-4249

Aug 16th 2013
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Jericho Cherry (Jerichocherry)
#56 ranked lender in Virginia - 1,107 contributions

It depends on the lender that you are using. With some lenders credit is good up to sixty days. My advice is to check with your LO.

Aug 16th 2013
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Josh Lund (Josh_Lund)
#46 ranked lender in Minnesota - 113 contributions

As long as the payment was NOT 30 days late it should not effect his credit score. I would talk with your loan officer.

Aug 16th 2013
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Jason Vondrak (jvondrak)
#216 ranked lender in California - 1,741 contributions

Yes, until your loan is funded you should be very careful of making all credit card payments on time and keeping your credit card balances low. Your lender will often pull a credit report right before closing to ensure that your credit has not dropped or your debt-to-income ratio has not changed.

Aug 16th 2013
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