The situation
A buyer had been preapproved by Sarah and then went under contract on a new-construction home. The builder referred him to its preferred lender and to two other lenders.
What went wrong
All three lenders declined the buyer. He worked full time and also earned overtime, but his overtime history was only 1 year and 4 months.
Sarah explained that the other lenders had overlays affecting their ability to use the overtime. An overlay is an extra rule a lender adds on top of the loan program's own guidelines.
What Sarah did
After the buyer called Sarah again, she revisited the loan under the guidelines available through her lending channel, without the same overlays.
The result
Sarah reported that the team completed the financing and closed in approximately two weeks.
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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