My husband and I decided buying home would be a wonderful step forward in our lives so before we were married we were pre- approved by a mortgage company in Nebraska for $100,000. We hadn't decided where exactly we would live. I finally pursauded my husband to live in Iowa. So we needed to be pre- approved in Iowa. We were referred to RMS by our real estate agent.
Well my husband and I went round about with different possibilities for us and one was he would purchase the house with out me just in case after all we weren't married yet. So he went to be pre- approved and was for 80,000 I believe, however in the long run we wanted us both to be a part of this first home buying. So my husband called Carol back up and asked for us both to be pre-approved an appointment was made.
My bank statements and taxes and etc were taken and copied and put in a file all the while my husband and I assumed I was being approved along with him for a home mortgage. Carol told us my credit rating was better then my husbands and no problem. We knew what our payment was going to be and everything was settled eventually a closing date was made with the home sellers and time was taken off from work.
My husband had even told his apartment building he was no longer going to be living there. I partly lived at home and stayed at his aprtment as well after all I was in college and it was 5 minutes away for me to drive there late at night after my night class was out then 25 minutes or so home.
When closing day came our boxes were packed and everything was ready to go inspections had even taken place on our future home.
However, 9am went and passed no phone call from Carol our mortgage agent. My husband phoned him and he said well he was having some problems with the actual lenders and we would close later in the day no problem he told us. However, it never happened that day all the while we had no idea what was actually happening.
We were told ok now you'll close on Friday then it was Monday more time was taken off from work and with no place now for Matt to live he had to move all of his things to my parents home. Well Monday came and Monday went.
Carol finally told us our loan had been denied because of my unveriafiable rent history??? Now I didn't rent anywhere I lived at home that was my addres. Like many college students yes I spent nights elsewhere this made no sense. On top of all of this we were pre-approved??? Well all Carol could say was sorry, sorry my husband had no home sorry for all the hassle that's it. He actually told us we were never pre-approved. Then what was all that for earlier? He told us a mortgage like this you can't be pre-approved for. We were completely astonished and confused.
Now the seller of course was pissed and called said he was going to sue my husband and myself. It was our first home we didn't have closing cost so they were added into the loan. The seller agreed to pay and be reinbursed later with the loan money. He of course was not. Although there was no legal grounds for us to be sued. We never bought that house and decided an apartment was safer, until we are able to save money and to go to a real bank.
We still have no idea why we were pre-approved then not and how in the world I had unverifiable rent history and why we could have been pre-approved at a place in Nebraska for over what we asked for in Iowa and have so many problems in Iowa. Since there really isn't many places to turn to for help warning others is hopefuly going to help someone else from everything we had to go through.