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Underwriter says NO

Will the bank hold my house for me to buy if the 1st underwriter says no to a loan? by rmiors_934_764 from Fairfield, California. Apr 11th 2013 Reply


Joe Metzler (JoeMetzler)
#19 ranked lender in Minnesota - 3,981 contributions

Talk to your loan officer... Determine why you are getting a no answer, and see if it is something you can overcome. I am guessing you are trying to buy a short sale or foreclosure. The selling bank will be reasonable, but will not wait for too long for you to get final loan approval.

Apr 12th 2013
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John Tam (Xbcpaperguy)
#845 ranked lender in California - 7 contributions

This is a vague question but I will attempt to make some assumptions and answer it. If the sales contract is just between you and the owner/seller of the house, there is no way a bank can "hold" your house for you to buy. And if an underwriter turns down your loan application for a specific reason, chances are you will get turned down again for the same reason by a different underwriter at a different bank if you are applying for a Conventional or Government loan. This is because the majority of banks & lenders sell their closed loans to the same investors and must adhere to the investors' underwriting guidelines.

Apr 12th 2013
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John Ussery MLO: 275504 (JohnUssery)
#884 ranked lender in California - 4 contributions

Assuming this is a short sale puchase that you are in contract on: The bank will take their sweet time approving the short sale but then once approved they will want their money ASAP. It's like wait wait wait then rush rush rush. If your first lender turns down the loan you will be at risk for loosing the property only when the purchase contract expires. Lending guidelines are very simular since the mortgage crisis so it's up to the loan officer to pre-underwrite your file. If your loan officer knows the business and is experienced then underwriting turn downs will not be likey. In other words... Any concerns your lender has should have already been addressed before you paid for the appraisal on the subject property.

Apr 12th 2013
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Steven Ceceri (CreativeFinancingOptionsGroup)
#36 ranked lender in Massachusetts - 723 contributions

Just wondering if you received the help and answer you were looking for? If not, feel free to email me directly to discuss offline. A direct conversation will result in much better assistance for your specific questions and scenario! Good Luck!

Apr 12th 2013
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Edward Kim (precision)
#869 ranked lender in California - 3 contributions

Is this a Short Sale purchase? What is the problem with your loan?

Apr 12th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

What are you asking?

Apr 12th 2013
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Carlos Figueira (carlosfigueira)
#108 ranked lender in New Jersey - 199 contributions

Can you provide more info.

Apr 12th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

Need more info to help you.

Apr 12th 2013
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Tracy Logan (TracyLogan)
#37 ranked lender in Nevada - 3 contributions

Depending on when your close of escrow date is, the bank may grant an extension while you are still in the loan process. Lenders can implement guideline "overlays" so just because one lender may deny your loan, another may very well be able to approve you. I get about 2 calls a week from buyers who are denied from a bank and I end up closing their loan. If you are interested please feel free to call me to go over the details, I'd be happy to see if I can get this loan closed for you. 702-666-0156.

Apr 12th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

If the loan was denied you need to find out why. If it was because you did not meet a specific Fannie/Freddie guideline odds are you will run into the same issue with another bank. If the denial was based on something else, you need to figure out what the specific issue was an work with your loan officer to correct it.

Apr 12th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

Is it a shortsale/foreclosure or a normal purchase? If it is under contract on a normal sale they will abide by the terms of the REPC. If it is a shortsale/forclosure the bank can pull it at anytime regardless what the REPC states. Yes, you would have some remedy relief stance but would you be willing to pay all the legal fees to challenge the bank to sell it to you? Most likely not.

Apr 12th 2013
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Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 400 contributions

If you can be specific about why your loan was turned down there may be a lender on this forum that can assist you. Some lenders have their own restrictions, known as overlays, that exceed those of Fannie/Freddie/FHA etc. Direct lenders have options with no overlays which could allow you loan to be approved.

Apr 12th 2013
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Raymond Denton (Raymond)
#10 ranked lender in Ohio - 224 contributions

It depends on your financial contingency agreement - what does your Purchase Agreement say?This is a good reason why you'd want to get pre-approved for a mortgage, prior to entering into a Purchase Agreement.

Apr 12th 2013
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Blake Kleckner (BlakeK)
#386 ranked lender in California - 258 contributions

The bank has no authority to hold, or not, hold a home you want to buy. You need to find out why you're getting a no answer, and take your loan to a mortgage broker. Banks really don't work at helping borrowers get loans--mortgage brokers do. Getting qualified can be a pretty slippery slope and to try to do it on your own, without an advocate, is extremely difficult. Give me a call 16/7, or email me your phone number so I can call you, and I'll be happy to walk you through the process. To learn more about me and our mortgage brokerage, click on my picture. When the next page pops up, click on "Website" and you will be redirected to ours. We work exclusively in CA and get loans done fast, typically in less than 30 days, at low interest rates and costs. Representing 40quality lenders that offer more than 1,000 loan programs, we definitely have something for everybody.

Apr 14th 2013
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