Home Equity Loan Pre-Approvals

[curlau]

If we have a document - a Pre-Approval Letter, signed by a representative of a Lending institution, can the institution (at the last minute,) refuse to loan us the money. We have provided them with all needed information and did so at the beginning of this process some 12 days ago. The pre-approval letter also states that the underwriting department was the source of the pre approval. Is the Lender allosed to do this, and if not, what are our legal options, as we retained the copies of the pre approval documents forwarded to us.

Many thanks and PLEASE reply quickly!
Curt Kessler

 

[HomeGuru]

A pre-approval lender means nothing. You needed a signed loan committment letter from the lender along with the Truth-in-lending and Good Faith Estimate docs.