Cure Mortgage Approval Hiccups

I don't have to convince you that mortgage approval can be tricky.

Take the case of a home buyer who wrote me recently thanking me for listening. On the day of closing, his loan was denied because the appraiser couldn't confirm the purchase price.

That meant my Reader couldn't buy his house because homes similar to his had not closed. But he wanted to know which comes first, the chicken or the egg!

Translating The Secret Language Of Mortgage Lending

Hi my name is Kate Ford and I am a real estate and mortgage insider. You might call me a mortgage translator. I have helped thousands of homeowners for more than 20 years get their best mortgage rate for refinancing and buying homes.

This probably comes as no big surprise to be told mortgage lenders have a different vocabulary compared to the average homeowner. It can be downright baffling.

That is why I began this website, Get-Your-Best-Mortgage-Rate.com a few years ago. I have made it my mission to translate the secret language of mortgage lending, making it easy for homeowners and home buyers to understand.

Mortgage Approval Hiccups

Back to my Reader's dilemma. I can certainly understand the disappointment. Anticipating mortgage approval only to discover a major hiccup can be heart breaking.

Please allow me to describe with every day language what the lender may be signaling. You hear the lender say...

"Your loan is denied because there are no comparable properties."

But the translation could be...

"Either increase your down payment or the seller should lower the purchase price."

Preliminary Versus Final Mortgage Approval

It's important to understand the difference between preliminary approval and final mortgage approval. Final loan approval is based on fulfilling conditions from the preliminary approval.

These outstanding conditions form a list. The to-do list might call for something major like approving an appraisal or something as minor as an initial.

But not until every condition has been checked off the to-do list does a preliminary mortgage approval become final. As my Reader discovered, without the final mortgage approval, no closing.

How To Finalize Mortgage Loan Approval

Equally important, all home buyers unable to finalize a real estate transaction need an action plan. Here's an opportunity to proactively question your lender.

Because unless you can get to the bottom... Until the lender will say outright... Without understanding the to-do list... you are walking around in the dark, likely bumping into walls.

If you find yourself in this situation, there's really no benefit to further speculation. You'll have better results if you pick up the phone and call your home loan representative.

In plain language, ask what halted your mortgage approval. Then request an alternative plan of action.

Question Your Way To Mortgage Approval

Did you guess your next step has something to do with questions?

Ask Kate™ is specifically designed to answer your questions and create dialog regarding mortgage financing. Because every question is a good question, Ask Kate now!

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