Mortgage lender approved me for a loan and then said made mistake on income.

A pre approval or pre qualification is not a guarantee that you will get financing.. Until your complete loan file is processed and fully underwritten, anything can happen, and mistakes are made and things are missed. Today's lending environment is so complex and over regulated, that lenders are afraid to make a mistake. They will always side on the most conservative approach, leaving little wiggle room. Personally, i would advise you to ask specifically what was missed, and ask if this is a true conforming guideline that is disallowing some income or is it your lenders overlay.. Understand that each lending program has a standardized set of guidelines and most lenders will add additional guidelines to suit their acceptable level or risk.. it's these "Overlay's" that might be causing your income problem.. Get the specifics and contact another local broker and see if they would be subject to looking at the income in the same manner.. .. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

That's a tough situation you're in. Mistakes unfortunately do happen; your income was miscalculated and the pre-approval was based on the mistaken income. But once the error is caught, the underwriters have to go by the correct information on whether you have enough income to qualify for the loan. Your lender should be working with you really closely to see how to save this loan - recalculate your income, see if anything is overlooked, perhaps increase your down payment, perhaps bring on a co-borrower to add their income, perhaps switch to an adjustable loan with a lower rate, etc. There should be some options that could make this work for you and hopefully the seller will give you extra time. And if you've lost confidence in your lender, find another. Best of luck!

Unfortunately, a pre-approval from a lender is not a commitment to lend. Lenders do make mistakes sometimes however, but it should be remedied as soon as possible. A lot of times a pre-approval is based on the information given to the lender from the borrower, without the lender verifying this information. To ensure your pre-approval is accurate, it is recommended to provide your lender with all income documentation ahead of time. Please feel free to call if you have any questions about the pre-approval process. Nick - 303-407-0824.

You must understand that a pre-approval is not a commitment to lend. A commitment to lend comes only after the file has been fully underwritten by a underwriter and all the conditions are met.

Hi Serena, it may have been from new information they obtained with updated documents or they simply calculated the income wrong from the start or missed something. It is not a bad idea to have someone else review the income and go over their calculations. There may be some additional options? If you have any questions or if you would like a second opinion you can reach me at 303-521-7169 or syoung@firstcal.net / Best wishes, Sean