Loan Approval: Before any loans go into Approval/Denial Status, it goes through processing and underwriting status: verifying information, docs packaging, and file all your loan information in a coherent manner. Underwriters underwrite the loans base on existing Fannie Mae and Freddy Mac guidelines.
Loan Denial: Strictly speaking, when borrowers are not qualified, no underwriting loan denial is necessary because this is what Pre-Qualification/ Pre-Approval are for. However, under rare circumstances, when Borrower’s financial condition, Escrow, Seller, or any unforeseen issues happens, loan denial will occur, unless existing issues is immediately corrected.
Borrowers shouldn’t be discouraged when they aren’t qualified, or when their loan is denied. Getting a loan in many ways is a mean to an end: If it’s income problem, credit problems, status problem, Real Estate issues—they are all correctable with Virchu Financial & Investment.