True Story Thursday: How To Tell If Your Mortgage Pre-Approval From Your Mortgage Lender Is Garbage

[@revilsdr]

You also have to be careful cause large banks will give you a preapproval, but they have so many overlays in underwriting that you could get down close to close, and the loan will fall through. You’re better off going with smaller lenders. Chase bank did this to me two weeks before close. Luckily, I found another smaller lender who was able to do it. Larger lenders like chasing Wells Fargo are difficult to get a hold of anybody in the specific departments to find out what’s going on with your loan.

[@JenniferBeeston]

100% banks love to promise the moon but they have gotten very restrictive recently. We fully underwrite every preapproval upfront and don’t have as many overlays as the banks. Thank goodness

[@49Macman]

Yikes! As Jennifer was talking I was thinking I wouldn't have this problem as I am going through a large bank, but now I know it can happen through your post. However, someone I did talk to through this same bank told me she just took out a loan and advised me to "'go the extra mile" to increase my chance for approval. Thanks.

[@49Macman]

@@JenniferBeestonLearning a lot through your vids, Jennifer. Thanks so much!

[@stephenbadea2362]

Jennifer Beeston is a rockstar! She helped me get my dream home 😎 HIGHLY RECOMMENDED

[@JenniferBeeston]

Thankyou Stephen!! We loved working with you and we really appreciate you!

[@josecolon8143]

Solid free education! Thank you, sooo much

[@patriciagoldsmith8667]

Now I am getting concerned after hearing all this. We just got told day before yesterday we were pre-approved and told to go look at houses. Even set up with an agent who did a video walk-through on one house yesterday since we are wanting to buy out of state. We have been given zero documents showing our approval. She made this sound normal and is actually still asking us for more documents on my husband's pensions. I feel even more uncomfortable about this now that I watched this video. Thanks for all the informative videos. I at least feel I have some idea of the process now.

[@JenniferBeeston]

Hi Patricia, Check out this video kzbin.info/www/bejne/qX-bkomaq7tjhqs

[@davidlarson7994]

Jenn, the lending goddess of results!!!

[@DergEnterprises]

My final approval was around $60 grand less than my pre-approval. This didn't matter for me, cause of the house I wanted (and bought), but it was concerning. And yes, I got a copy of all three of my credit reports from the lender during the pre-approval process.

[@laneshanelloms]

She’s coming for you! Get ‘em Jen!!

[@annkoehler8017]

Jennifer, you are just awesome! I swear, you are a new breed of true professional that the rest need to emulate. Thank you, thank you, thank you for such a great episode, and thank you for the shout out at the very beginning. I got all choked up, when I saw you got choked up twice in your video. Looking forward to more!!

[@JenniferBeeston]

Thank you Ann and THANK YOU for the suggestion. I am going to have a lot of fun with True stories;)

[@eddiee3269]

This will happen when you have the agent refer you a lender because they have a work together policy. Better off getting a solid approval after they run credit.

[@herculesotieno4942]

Yah it's like throwing on the wall if it sticks then good , most of lenders do just give a preapproval letter and don't prequalify a client and verifying their documents only the deal to die when it about to close

[@TinaMeyer-nn2rm]

I do a full hard credit pre-approval with all documents so when they get a contract we are ready to go. I have lost some clients to lenders who give pre approval again without credit until they get a contract which to me is a big risk. Alot of Realtors push these lenders because its a easy pre -approval. Which is garbage.

[@AlliNW0nderland.]

Jen I really thank you for your factual instructions. It has come in handy in more ways than 1. I can spot the red flags from asking the questions you’ve recommended

[@JenniferBeeston]

I am so happy it has helped:)

[@neversaynever8732]

Sometime buyer wants to get fool because they want to find out the hard way. Actually, a lot of buyers want to fool themselves when they image themselves in the home they can't afford on paper.

[@JenniferBeeston]

Yes I have hit those buyers as well and even when I do the math line by line they still ignore me. All we can do is help people to try to be realistic but yes there is always another lender ready to get them into a "house poor" situation

[@albundy3929]

Wow, I'm loving this True Story series....can't wait for more!! 2x week even better!

[@JenniferBeeston]

Thank you Al!!

[@Dee-oq5ms]

This must happens often because the first thing my realtor asked me was did you speak to the person who gave you your pre-approval or did you get it offline, then she asked for the number to touch bases with the originator herself. I was a little offended at first but I get it now.

[@JenniferBeeston]

It happens so much it is sad. I am glad your Realtor was on the ball. A good lender is always cool to talk to the Realtor

[@nezhaazagzaou3033]

I wish I listen to you before I am victim 😢of lock of communication I got the pré-approval. I did find the house 🏡 Now we are not firing the lender requested as self employed more documents rate up to 9.25 Down payement 25% Extension on closing 2 times After we did pay 20 thousand down payment after we pay for appraisal / inspiration……. Lender canceled 2 Times closing disclosure!!!!!!!😢😢😢😢😢 As first time buyers /as self employed handyman it’s struggle ..,,,, I wish the loan officer did his homework before he send us excitement letter pre approval;) Piece of garbage as you describe it I totally 💯 agree

[@JenniferBeeston]

I am so sorry this happened to you:(

[@WealthFitPurpose]

Good job Jen!! M a real estate agent and so many buyers are like don’t worry I know I am qualified for the loan. That just freaking baffles me: why on earth do they want to waste their time and money?? 🤷‍♀️

[@JenniferBeeston]

Thank you! I think it never occurs to anyone that lenders would be giving out garbage preapprovals also I think people really underestimate the work required for a real and solid preapproval. I am hoping that as buyers become more and more educated these practices stop:)

[@eshaanjain7409]

@@JenniferBeeston just love all your videos. how can i contact you to get a pre-approval?

[@Xtremeproducts]

People are really trying to scam people in times like this from hardworking people and those who are honest. Soooooo sad

[@JenniferBeeston]

I think they are just lazy or don't know better. Either way it is super sad for sure

[@Xtremeproducts]

@@JenniferBeeston exactly

[@shareecain6759]

Yes very helpful. As i am awaiting to hear if my loan is approved

[@Nmatos1213]

I was just preapproved today and this video made me so happy that I was informed and went with a reputable lender. Answered all my questions and ran my credit!

[@JenniferBeeston]

That’s awesome! I am glad the video helped make you comfortable with your lender:)

[@alexsanchez7167]

Thank you for the video

[@luxurycardstore]

I have one of those letters right now. I got a pre-approval with a soft pull. HA HA HA, LOL not worth the paper I printed it on. Hmm if it weren't so scratchy I could use it for TP. Well, thank goodness I'm not actually looking to buy until later this year anyway. I kinda knew it was just a gimmick to get my email address.

[@JenniferBeeston]

If we have another toilet paper shortage you have it ready to go:)!

[@williamalvarado7810]

Another great video, thank you Jennifer.

[@JenniferBeeston]

Thank you:)

[@meinideli]

This happened to me. And I lost my dream home. He never worked my file and gave me a preapproval,. I'm going back to a real bank myself, never to use a mortgage broker from friend referral.

[@JenniferBeeston]

I am sorry that happened to you but sadly Banks are not safer. It 100% depends on the skill and drive of the individual loan officer you are working with. Bad ones are everywhere. Feel free to call us and we will fully underwrite your file before you go shopping and I am licensed everywhere but Utah and Rhode Island;) 707-478-0637

[@seans.8999]

Can you do a video on understanding or what's in a DU? I think it would make a great video....

[@JenniferBeeston]

That is a really good idea! Yes, I will 100% do that. Thank you for the suggestion:)

[@garciadavid5375]

Phenomenal video. Thanks for the heads up.

[@JenniferBeeston]

Thank you!!:)

[@CTMoney7]

Love your videos.

[@JenniferBeeston]

Thank you!

[@sheraw5308]

Thank you

[@nexusgamering]

Yes the roses will grow with that nice stuff 8) thanks for your advice!

[@JenniferBeeston]

I am expecting a beautiful garden this year based on the level of manure I am seeing;)

[@nexusgamering]

@@JenniferBeeston Totally !! I will be looking out for those nice flowers.

[@alexsanchez7167]

Pennymac Mortage gave me a pre-approval and then I spoke to a lending specialist and he said there is no way I’m going to qualify I’m in limbo now

[@JenniferBeeston]

You need a fully underwritten approval. We are happy to do 707-478-0637

[@conrailjohn6682]

Great video!

[@JenniferBeeston]

Thank you!

[@twosuns20]

It's our first time buying a home, and it's been the most stressful thing, and I wish I knew how stressful it was going to be. Our lender is not one of those big banks, but it is a national lending company minus a few states. We feel helpless because our closing has been delayed and delayed and delayed, in fact, CD (Closing Documents) were supposed to be issued 2 days ago, and they weren't, saying something else was missing. Is this normal? At this time, we feel the lender is dragging us along with no real closing date...We have given them every documents promptly, We have needed to request a couple of extension from seller already, and there's still no way to tell when they will give us final clear to close...it's been 60 days already...they keep saying soon, soon.

[@JenniferBeeston]

60 days is a long time but things can pop up at the end sometimes. Feel free to call me this weekend and we can talk about what is going on,. I may be able to shed some light on what may be happening behind the scenes 707-478-0637

[@GarciaonlyJesus]

Awesome thank you so much!!!!

[@JenniferBeeston]

Glad it helped!

[@Staceydidit]

Amazing content

[@JenniferBeeston]

Thank you!

[@daynescott1]

LP is typically more lenient FYI.

[@JenniferBeeston]

Agreed yet some lenders not use it at all which is bizarre to me. Hope you are well!:)

[@christophervickers9685]

Hi I’m really frustrated right now I’ve been working with a lender I got a pre approval and I’ve done payed everything 1860$ I’m due diligence $50 in Ernest we are in contract and closing is supposed to be in 9 days i was quoted closing to be $6,000 then my lender said it looks like that want be enough he said 8 should cover everything thing so I rehashed the offer and got agreement for seller to pay $9000 in cc then the next day I got an estimate says it will be expected 12,404 in closing costs I made sure from the very beginning I don’t have cash to bring to closing I will only go in contract with a seller willing to pay all closing it was agreed with lender and realtor from the beginning now 9 days away there saying I’ll have to bring 3600 to closing what can I do

[@JenniferBeeston]

So sorry to hear this!:( This is stressful They should have sent you an initial loan estimate. I am betting you are being charged points as that really is one of the only things that can get that dramatic. Basically you think you are locked but the lender has not locked you. They are playing the market and lose and you pay the price. Horrible practice. Only other thing could be insurance but that is really dramatic for insurance. We are happy to look at the loan estimate they sent you. Do you have the 12k one or better yet all of them? 707-478-0637 [e-mail] if you email over label (keep in inbox) so my team knows

[@charmainecharles512]

Hi Jennifer, I'm so happy I found your content. Should we pay off our debt (my husband and I) to reduce our DTI before applying for a mortgage? We want to qualify for as much as possible and I feel our DTI will prevent that. Also I have heard it's not a good idea to pay off all debt before applying for a mortgage is that true?

[@JenniferBeeston]

Nice to meet you and thank you! It 100% depends on your unique situation. Feel free to give me a call and we can run through the numbers roughly 707-478-0637

[@philam297]

I think it will only hurt you when you've already been pre approved then you pay down your debt, because they will then see that your cash reserved had been depleted and that will hurt your chances of actually being approved.

[@rosaelenaarce8189]

This happened to me... i think. They told me my credit was good. I got approved for up to 350k. My realtor requested a letter to place an offer, they provided it. It got accepted we give $5,100 towards escrow & had to pull out because we didn't get approved due to student load in collections. Thought it was so stupid to work like that waist of time for both parties. Grrr upsets me

[@JenniferBeeston]

So sorry you went through that. If you decided to try again we are here for you and do a full underwrite upfront to avoid that drama.

[@rosaelenaarce8189]

@@JenniferBeeston I was told that was the process 😔 Thank you for providing that information to us... I've learned so much from your videos. I will definitely consider you all for my home purchase we will be ready by beginning of July.

[@JenniferBeeston]

@@rosaelenaarce8189 we are here for you when you need us

[@davidalfonso8279]

Can u file a lawsuit against the lender if they're lying to you and not doing their jobs. Pls. Let me know...

[@JenniferBeeston]

I would contact consumer finance protection bureau. They can guide you.

[@marystutt8157]

I’m buying a home and using my VA a second time. We went to USAA and got preapproved right away. I wanted to shop other lenders. Does it hurt my credit score if I have another lender pull my credit?

[@JenniferBeeston]

You should 100% shop the rate. It does not hurt you to apply with lenders if it is within 30 days. If you want us to quote call me at 707-478-0637. Make sure you ask lenders about origination fees and points.

[@b.e3366]

Just had a meeting with a loan officer, they mentioned manufacture homes have higher rates. Va loan for a manufacture home on some acres was up to 3.1. Is that normal?

[@JenniferBeeston]

Manufactured homes do have higher rates with all loan types including VA

[@b.e3366]

@@JenniferBeeston thanks for that reassurance!

[@milo74156]

Your great Thanks

[@JenniferBeeston]

Thank you!

[@mikehernandez7462]

NOW I BELIEVE IN ANGELS....

[@SuncityDirtMachine]

What’s the Difference between a pre-approval vs a conditional pre-qualification letter . I Received the Conditional pre-qual letter and went into contract with a builder few days ago and gave money for escrow. Should I be worried?Credit was ran but haven’t gone into underwriting! When should I expect to go into underwriting?The home about two months out before it’s finished.TIA

[@JenniferBeeston]

You need to go into underwriting and you need to shop the builders lenders rate and fees.

[@SuncityDirtMachine]

@@JenniferBeeston the home is 2 month out from completion! Should I push the mortgage company to get me into underwriting now?

[@TheSmackdwn]

What if they only verified only 2 credit scores?

[@JenniferBeeston]

That’s fine

[@BlackTopCornhole]

Can I use a VA loan to buy a modular home and or land combination at all?

[@JenniferBeeston]

You would need to talk to a va construction lender which unfortunately we do not do:(

[@BlackTopCornhole]

@@JenniferBeeston Thanks

[@TheSmackdwn]

Based on another video you did recently, I asked the lender we are working with whom seems to be a stand up guy so far... if our pre-approval was fully underwritten. He said it's not fully underwritten until we are under contract but that he had ran our file through initial underwriting and received approval. Is that legit?

[@JenniferBeeston]

That’s a basic preapproval. We do full underwrites. Not everyone does.

[@TheSmackdwn]

@@JenniferBeeston ah I see. Thank you for replying!

[@suzannesmethers297]

I have a pre certified is that the same as pre approval?

[@JenniferBeeston]

I have never heard of a pre certified. I would ask for more details.

[@mejiadadds]

Hey Jen Are you licensed in AZ and NV? We are selling our house next week and plan to move to one of those states. Please reach out to me 😀

[@JenniferBeeston]

Nice to meet you David! Yes I am and I would love to help. You can pick out a good time to chat here:) calendly.com/jennifer-beeston/preapproval-q-a

[@702couch]

Just found this video....Im under contract right now. Does Veterans Untied use DU ?

[@JenniferBeeston]

I cant speak to how they qualify but I would 100% shop the rate and fees

[@alexandermaciag377]

Little by little its time for me to leave You Tube. Too many people are being controlled and suppressed. Thanks. Watch you in so other way someday. Ret. Air Force vet.

[@JenniferBeeston]

I hope you are ok.

[@Mahbubalam-ll9eg]

😊❤

[@vag4lvevo22]

So does getting a pre approved letter means my lender ran me through du? Thank you 🙏

[@JenniferBeeston]

Nope Always good to ask the lender what they did to approve you

[@vag4lvevo22]

@@JenniferBeeston ohh ok thank you 🙏

[@mackjames3174]

How do you feel about LoanFactory ?

[@JenniferBeeston]

Never hit them

[@mackjames3174]

Ok thanks

[@edmarpedraza4001]

My lender supposedly ran my credit on Jan 7th and said my credit was x and that I qualify for a conventional loan. I uploaded all of my documents that same night. And said start looking for a home. Now two days ago he is telling me that he needs some “Pre-employment verification” and needs to see more pastetubs and my bonuses. Is this normal process? Also, since I qualify for Conventional is it even worth hearing about “First time home buyer program”? Thanks a ton

[@JenniferBeeston]

Yes asking for documents is normal. I ask for them before I issue the letter as I want to make sure we are all good but asking for that is not unusual. Conventional has some first time homebuyer programs. It never hurts to know your options.

[@edmarpedraza4001]

Thanks for your reply ☺️

[@yungfez]

Yea I went conventional for both my properties I close on the 2nd next week but fha was an option that was available to save cash now if your are interested in that

[@Xtremeproducts]

#TST

[@GarciaonlyJesus]

Can I ask you when I see houses on sale some of them on zillow or realtor.com for example, and some houses have the word Contingent on them.. do you know what that it means? Thank you si much!!!!

[@JenniferBeeston]

Happy to help! Contingent means it is in contract.

[@GarciaonlyJesus]

@@JenniferBeeston with a convendional Loan it is possible to buy houses under that?

[@Picwajzzz]

@@GarciaonlyJesus yes

[@shadorismartin]

I talked to you in November about this. My lender didn’t think to tell us that since we live in TX currently (both my husband and I) we couldn’t build a house in GA (our home of record). And we are also 12 months out from ETS so we would have to show reenlistment showing we are in going to be living in GA or will have civilian employment there. I applied with 3 different lenders and it wasn’t until one told me this. However, the builders preferred lender did not. I had to do my own research. I also had to ask her for the loan estimate. BEWARE military folks. #MyCautionaryTale

[@JenniferBeeston]

Yeah I am seeing a lot of this with builders lenders right now. Its crazy

[@sturmbreakers7817]

You living in Texas and building in Georgia is not a problem. The problem is 12 months before ETS!

[@shadorismartin]

@@sturmbreakers7817 I know what my issue was and it was both. Thank you for the reply though. You cannot get an owner occupied mortgage in another state without showing proof of residency

[@sturmbreakers7817]

@@shadorismartin Occupancy within a “reasonable time" means within 60 days after the loan closing. More than 60 days may be considered reasonable if both of the following conditions are met: • the veteran certifies that he or she will personally occupy the property as his or her home at a specific date after loan closing, and • there is a particular future event that will make it possible for the veteran to personally occupy the property as his or her home on a specific future date. Occupancy at a date beyond 12 months after loan closing generally cannot be considered reasonable by VA. Occupancy (or intent to occupy) by the spouse or dependent child satisfies the occupancy requirement for a veteran who is on active duty and cannot personally occupy the dwelling within a reasonable time. In the case of a dependent child, the veteran’s attorney-in-fact or legal guardian of the dependent child must make the certification and sign VA Form 26-1820, Report and Certification of Loan Disbursement. Spouse or Dependent d. Occupancy Requirements for Deployed Active Duty Servicemembers e. Occupancy After Retirement Occupancy by the spouse may also satisfy the requirement if the veteran cannot personally occupy the dwelling within a reasonable time due to distant employment other than military service. In these specific cases, consult your Regional Loan Center (RLC) to determine if this type of occupancy meets VA requirements. Note: The cost of maintaining separate living arrangements should be considered in underwriting the loan.

[@lizablackard-sr.loanoffice7439]

wow how to tell if your thumbnail is spell checked

[@JenniferBeeston]

Al the cool kids have tell if as one word now apparently

[@nicolec708]

Hey Jennifer came across your page..and just in time because I feel like what you are speaking of.i feel like I have been had..my story..looking around to see if I can qualify for a home loan being that I been through bankruptcy..well came across a realtor that happen to be in contact with a lender and she told me the lender she referred was great at helping me with situation..ok..talked to him..he gave advice on what to pay to bring up credit score. Month passed. Did that. Ran credit did app and said I was preapproved for a house I liked and started getting all paperwork to send..lender had everything requested. Almost month later came back to me to say my dti was high..I'm like how..you looked and ran everything and said it was ok..how did u get me preapproved..will not make closing date cause lender said income did not match application..I'm confused now..scared that I may be sued by seller cause lender kept Important info from me.i already paid earnest fee and inspection on home. I felt I was lied too. Now I'm stuck. Closing date ends on 10th of may. I dont know what to do at this point. I am discouraged .

[@JenniferBeeston]

Is there anything that can be done to bring down the debt to income? Also were their other monthly debts that came up later that the lender did not know about. We see that sometimes

[@nicolec708]

@@JenniferBeeston Hi Jennifer. THANKS YOU FOR THE RESPONSE..and yes there were something that came up..but the confusing part about this was my lender already knew. As a matter of fact he told me what percentage to pay on them and I did that. I did not touch anything..meaning I did not spend anything..I just continued paying as he told me. I dont know anything else..but I do know that the check I wrote the earnest money was cashed and I already paid for inspection. The last conversation to me from my lender was that we will continue to work on getting me a home. So I'm gonna guess that I lost out on the home i spent that money on..