Pre-approval for mortgages is a fantasy. At our law office, our clients have been coming to us for years and advising us that they’ve spoken to their mortgage broker and they’ve been pre-approved. Pre-approval is a marketing device for mortgage brokers and financial institutions. It does not mean that you will receive a mortgage!Pre-approval is usually subject to underwriting, credit checks, validation of financial information and all types of other prerequisites. The following is an example of how pre-approval really works:
The prospective homeowner goes into the financial institution. A salesperson tells the perspective homeowner that he or she has been pre-approved for a mortgage. Based on this information, the prospective homeowner finds a house to buy and enters into a real estate contract. The financial institution does credit checks, checks employment, and thereafter underwrites the loan.
In the end, the financial institution can turn down the mortgage for numerous reasons, including not fulfilling the obligations of the underwriting process or by simply stating that the pre-approval was for only a limited period of time and that the prospective purchaser has exceeded that period of time in going from contract to closing on the transaction. This leaves the homeowner high and dry. You don’t have your mortgage until you are sitting at the closing table and the check from your financial institution is given to the seller.
Nassau County Foreclosure Defense Lawyer
Our law firm deals with the following issues: mortgage modification programs, foreclosure, court conferences, foreclosure litigation, defective mortgage foreclosure lawsuits, predatory lending issues, bad faith by financial institutions, defective mortgages and real estate issues in general. We also deal with the filing of Chapter 7 bankruptcy, Chapter 13 bankruptcy, re-establishing credit and stopping foreclosures. Should you have any of these problems, call us! We can help you.
