mortgage loan

[bbycott]

I am in the process of becoming a first time homeowner. Prior to my loan officer finding a loan their were a couple of non-negotiable conditions. 1) We expected 100% financing 2) We were not going to clear up our credit history prior to the purchase. If they could not meet these terms....then we walk away(no if, ands, or buts). The loan process had to go through a underwriter and our conditions were finally met. Our loan officer stated that we were approved for the 100%, and our credit history did not require any cleaning up on. Three weeks after this verbal approval, I receive a loan confirmation letter from their Arizona location. The loan agreement only approved us for $145,000(the house is valued at $146,000 before tax, title, and license). The letter further stated that 4-5 issues on our credit report must be cleared up prior to recieving the loan. Finally to the question.....Does the verbal agreement with the loan officer hold any weight? I have not seen or heard anything stating that these conditions could alter after our verbal approval.

Frustrated,

Brian

 

[HomeGuru]

Why are you frustrated? As you say, it was verbal approval. Verbal approval is nothing. You would need a written loan committment if you want to gripe about anything.

 

[TimC]

There is absolutely nothing that says you have to accept the loan.

The ball is in your court. If you don't like the terms, walk away.

 

[David J. Miller]

Sounds very familiar. Lots of people say "I'm approved elsewhere" when reality is loan officer simply said I believe you will be approved or my opinion is that you will be approved or something like that.

Your contingencies are rediculous and I would not have even bothered taking the loan application. You cannot get 100% financing with collections/judgements/tax liens or anything else outstanding on your credit report. In fact you'd be lucky to get a loan for 80% of the properties value with an interest rate 2-3% or more over market.

In other words, payoff your bad debt or continue wasting your money renting.