|
I applied for a mortgage loan based on a pre-approval I received from Paragon Mortgage Services. We went under contract after looking at several houses. I paid the earnest money, paid for the inspection, paid for the appraisal, provided all requested documentation and signed a ton of documents. Then 9 days before our closing date I was told that I could not be approved for the loan. This decision was made based on my income ; the same income that was used to get my pre-approval.I was told that the underwriter denied my application because I am self-employed and they can not verify my income like they could if I were employed by someone else. I felt like I was dragged through the mud. My entire house was packed, we were getting ready to move, and the house I was occupying was set to be rented to someone else once we were completely moved out. We went from being excited about moving into our new house to possibly being homeless. I felt like these mortgage people should have known whether or not I would be approved for a mortgage loan when they gave me the pre-approval, before I went out looking for a house, before I paid for the home inspection, and before I paid for the appraisal. I had to contact 3 different people at Paragon Mortgage Services to get a straight answer as to what had changed from the time I got the pre-approval to 9 days before our closing date. I was told my application was denied due to changes in the guidelines for self-employed individuals. I was told my application was denied due to COVID-19. Then, I was finally told that the mortgage service-er I was working with had an underwriter look at my file prior to issuing the pre-approval letter to double check her work. Then once I was under contract and the process had been moved along a different underwriter was making the final decision said that the mortgage service-er and the first underwriter both made a mistake in the calculations of my income. How could 2 different people make the same mistake each looking at the file separately? And why was this mistake not noticed earlier in the loan process? I mean 9 days before closing date my entire family 's life was turned upside down. How is this ok? I feel like I was discriminated against because I am self-employed and they didn't want to take the time to go over all the documentation they had me supply for them. They told me I needed an audited P & L Statement ; which costs anywhere from $ XXXX {$6000.00}. So not only was I about to be homeless, but I was also not going to be reimbursed for the earnest money, the cost of the home inspection or the cost of the appraisal. How can someone make a mistake like that, a mistake that messes with a family 's stability, and not be held accountable. They should not be in the position they are in if they are making mistakes like that.
|