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Financing -- Loans/pre-qualification letter

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Hello Finance Guy:

Looks like you're the only expert left to answer finance questions. I too am an expert contact on this site to help others. Anyway, my question is hopefully in your realm of expertise.

We had/have a pre-qualification letter for a mortgage for $150K. After finding a house we wanted for $132k and our Realtor presented our offer and our pre-qualification letter, the title company began to work on the loan the very day of the signing of the purchase contract. That very same day the lender changed their mind claiming the bank tightened up on ratios.

I was told the mortgage program called GUSS has approved us and we were given the letter of approval. Can a lender just change their mind? Nothing negative on our end was a reason. This was a USDA loan if that has any bearing on your answer.

This killed us, we now have 3 weeks to find a place to live and likely will be stuck in an apartment because of this lender.

Thanks in advance my friend
Jim

Answer
I am so sorry to hear about your situation.

Unfortunately, banks have been doing this to many folks that I hear about, including a buyer for one of my properties.

Don't believe you have any recourse against the bank, due to weasel language in the "commitment"...

Curious, how much of a down payment did you have?

Best regards,

Ron

Financing -- Loans

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Finance Guy

Expertise

1. All questions relating to finance 2. All practical aspects of mergers and acquisitions 3. Many general business questions

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Considerable experience in the area consisting of 25 years in both consumer and commercial finance and business management, including 15 years specializing in international Mergers and Acquisitions with over $100 billion in assets acquired Education/Credentials Business administration undergrad Wharton post grad in finance Awards and Honors numerous corporate awards Past/Present clients range from small enterprenurial companies to large multinationals

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