Pre Approval : Please help ! urgent!

**SoCalBuyer** · 04-04-2009, 08:35 AM

Hi,
I am a first time home buyer planning to buy in Southern California. I was pre approved for a conventional condo loan for approximately 150K. At the time of my pre approval I was told that I would need 15% down to which I had agreed. I was also told that the pre approval letter is good for 3 months.
I have since than spent two months looking for a home, and now I finally have one on which my offer has been accepted. But the Bank now backed out saying they can only approve my loan if I pay 20% down. They said there policy has changed since I was initially pre approved.
I have spent a lot of time with this Bank in last two months sending them all the documents, talking with them several times on phone, and then at the last moment they are backing out on their previous commitment. Can they do that? I am so frustrated now at the thought of doing this all over with another bank.

. The only other option is to agree with them on 20% down. But that even makes me feel more frustrated.

What was the point of getting pre approved if it does not mean anything? Also I did not "shop around" intially because this bank I thought was giving me a good offer. Has some one been in a similar situation? Do I have any options?

PS : I forgot to mention that this has nothing to do with my credit. My credit score is >750, my income is well documented (~130K), I can afford to go up on my downpayment if it becomes a "MUST", but then I had other plans which I have to postpone for now I have to make extra downpayment.

Thanks.

**markbrian** · 04-04-2009, 11:32 AM

Sounds like they gave you a reason to at least talk to other lenders.

**prop4everyone** · 04-04-2009, 08:05 PM

Look, I know they gave you the run around and yes they can change
the rules as they go. At this point in my opinion you have 3 roads to
choose.

1) Since you can handle the 20% swallow your pride and just do it.
(That's if you REALLY want this house)

2) Walk away from this and wait for a better time and opportunity.

3) Shop around. My car recently died and I needed a new loan fast.
Now remember, the credit squeeze is not over so I turned to a local
credit union and received a superior note and a superior term.

Best to you