Sound legal advice and representation for clients throughout New York.
877-791-8076
Law Offices of Louis D. Stober, Jr., L.L.C.
We provide experienced employment/discrimination, personal injury, probate and estate planning, traffic violations, and real estate law representation from our Mineola office.
View Our Legal Services

Three ways even a pre-approved mortgage can fall through

Purchasing a home is often a complicated, stressful process. To help things along, many first-time home buyers try to get “pre-approved” for a mortgage before finding a property. The problem is, there are still problems that can arise even if someone has been pre-approved.

Today, we cover three of the common issues borrowers encounter when financing their residential real estate purchase:

Employment concerns

When a mortgage underwriter looks at an applicant’s employment history, they want to ensure the applicant has a consistent enough income to make timely payments. Factors that may give them pause include:

  • Gaps in employment history
  • Recently changing careers
  • Layoffs
  • Temporary employee status

Lenders also will sometimes overlook bonuses, commissions, or other not guaranteed income.

Issues in credit history

Many mortgage underwriters look at FICO credit scores, which include the last ten years of someone’s credit reports. Consequentially, even if someone currently has a high credit score, something from years past can derail the process. A history of late payments, for example, might make an underwriter reject a loan application.

Appraisals that come in low

If the home you are looking to buy is appraised at a lower value than the purchase price, the underwriter may reject the loan. This typically happens because the value does not match the amount a borrower is asking for. With the help of an experienced professional, applicants can contest a low appraisal.

Consulting with a real estate attorney early in the process can help many people avoid issues in the mortgage application process as well as real estate closings, partition actions and mortgage refinancing.

No Comments

Leave a comment
Comment Information
REQUEST AN APPOINTMENT »

Discover explore additional resources

Contact Our Employment Law And Personal Injury Attorneys

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

See Louis D. Stober featured in the LI Pulse - Top Legal Eagles of Long Island 2012 – 2016

98 Front Street | Mineola, NY 11501 | Toll Free: 877-791-8076 | Fax: 516-742-8603 | Map & Directions