Your Loan Is DECLINED…..WHAT?????
July 29th, 2008 Categories: Buying, Financing, Keller Williams, Tools and Resources
This happens and as a matter of fact just recently to me… Here are easy to follow instructions that I learned along the way that could preserve the deal and the customers earnest money deposit.
SCENARIO:
1. Referral comes in from existing client for their contact in another jurisdiction
2. Referral goes right back out to agent in that area
3. Accepting agent takes customer out and shows houses
4. Customer initiates contract and begins loan processes
5. LOAN IS DECLINED on the day before settlement……YIKES…..
WHAT IS A CUSTOMER TO DO?
SOLUTION:
1. STAY IN FULL COMMUNCIATION WITH YOUR AGENT- they are your advocate and not be dismissed. This is not a reason to be ashamed or embarassed but rather they can help you through what is probably the lender simply needing additional information about your income or the property.
2. Work with lender to find out what caused the issue- You probably had a pre qualifaction letter or your agent wouldnt have taken you out to begin with so what gives now? FIND OUT!!!
3. Request to extend the settlement date and in most cases seller will agree to your agents request since you will be making a good faith effort (especially by staying in communications) to proceed with the transaction. This step will more than likely preseve your earnest money deposit as well.
4. Work with lender inside new timeframes to ensure you get to closing table.
5. Enjoy your new home! (hopefully)
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