The situation
A preferred Realtor partner asked Sarah to help a buyer who had come with another lender's preapproval and then entered a purchase contract.
What went wrong
According to Sarah, the original lender had not checked the borrower's credit before the preapproval. After the contract was signed, the lender checked it and said the buyer needed roughly 20% down rather than the planned 3.5% down FHA financing. The buyer could not provide that amount.
Attempts to improve the credit were unsuccessful, and Sarah reported the score became worse. The contract was extended by two weeks, but the problem remained. The original lender stopped responding, the contract was canceled, and the buyer lost money.
What Sarah did
Sarah received the file, worked on the credit issue and, after approximately one month, helped the buyer reach a position to proceed.
The original house was still available. Sarah contacted the listing agent so the buyer could go back under contract.
The result
Sarah reported that the buyer closed approximately two weeks after returning under contract and recovered the money previously lost in the failed transaction.
Facing something similar?
A denial, a shaky preapproval or a tricky income question is a reason to get a second look, ideally before you sign a contract. Send Sarah your scenario.
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