Declined for a home loan refinancing after we were already approved?

Dee
We applied to refinance our house since we have so much equity in our home and we were approved the next day. We paid the mortgage company $430.00 to come and do an appraisal. The money came out of our account that very day, but we didn't hear anything from an appraiser (Who was supposed to call and set up an appointment). Two days later, the mortgage company called back and said that the underwriters are now not going to approve the loan and they are going to refund our money. Has this ever happened to anyone and can they change their minds like that? We have not missed any payments and our credit it high 600s and low 700s depending on where our scores are pulled. They obviously blamed it on the economy, but it doesn't seem right.

Bernice
As terrible as it is... thats the norm these days... I have been physically ill having to tell clients that they can no longer refiance even with thier 800 credit scores... It is the economy, believe me.. mortgage people work 100% commision if they could do the loan, they would. Sorry about your situation. Good Luck!

Devon
you should have been approved. They must send you a letter stating why you were denied credit. In Fact it is called a credit denial and must be filled out and signed. That will give you the reasons for sure. I am a mortgage banker in tN & KY

Bart
The answer is your home did not appraise for the amount you wanted to take out on it, or your credit to debt ratio is too high, and lets face it credit is tight right now. wait a few months and try again

Benita
Yes, this is happening.However, you were NOT approved. You were preapproved. The underwriter didn't approve you yet and this MUST happen.At least you got your money back.I wouldn't give up.

Eleni
Sounds like your home didn't come in at the appraised value that you needed.This is the reason that 80% of refinances don't end up closing.

Debrah
Yes, they can. It isn't your credit that's at issue. Banks lack capital to lend.