Is it uncommon for a lender not to give a buyer a copy of the loan approval?
So we just got approved by a lender for a home loan. We have opened escrow and put 2k in it. We ordered the home appraisal and got that done, now we are waiting to see what the value came in at, and I asked their broker for a copy of the loan approval and he said he couldnt give it to me due to lender regulations. Then i said i would still like a copy and he said that he would need to black out some items first. Is this common? What would he need to black out? Does it sound like they are hiding something from me? Thanks! by willpf_636_627 from Manchester, New Hampshire. Jul 3rd 2012
Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions
You are entitled to a copy of your appraisal under Federal Law, in fact I just provided a borrower with his a couple days ago after the value came in substantially lower than he thought. All you must do is request it in writing.
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
When dealing with a broker, they have contractual agreements with the lenders they work with. Those agreements usually require them to not disclose the name or phone number or location of the underwriter or "Decision Maker" for a particular loan. This type of lending is called "Indirect Lending" meaning you don't get to talk to the end investor, and they only do loans "Indirectly" from the customer... There is nothing odd about this. Your lender is not hiding anything from you, he is just not sharing because he cannot and if the borrower insists on seeing the actual approval, then the broker can redact the information he's not supposed to share. In all my lending experience, I have had only one time where a borrower insisted on seeing his approval, and he didn't understand it at all. It just doesn't say Approved or Denied.. There's much more to it than that.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions
By law you are entitled to a copy of the apprasial.They seem to be hiding something. For future mortgage needs I would suggest using a lender rather than a broker. Small local lenders seem to be the best fit for borrowers.
Robert Le (robert_le)
#623 ranked lender in California - 36 contributions
why is everyone talking about appraisal? The question is LOAN APPROVAL. It is illegal for them to black out any items. You have to look at the GFE. You have to look at the APR and interest rate. If the gap is large, then they are charging you alot.
Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions
YES, you are allowed to have a copy of the loan approval, and there SHOULD BE NO CHANGES nothing blacked out .. i would question the broker the only thing if it had your social security number on there, some old approvals do, that is the only thing to blacken out
Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions
I agree with what Larry said.
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