420,003
Hard to answer without knowing your particulars.
Here are the things that matter for a conventional loan:
Mortgage middle FICO score (is it the same paying off mortgage should have made it go up but closing credit card accounts makes it go down)
Your income averaged over the past 24 months (w-2 2021 2020 or 1099 or IRS all types of the returns for 2021 and 2019 plus profit and or loss for business). If income went from w-2 job to self employed in past year is a problem... (did your income type change? I assume as a lender notary you are self employed)
assets - past two months bank statements (after selling I would think you have more assets? no?
location- is your business in Yuma been there for the 2020 and 2021 IRS returns? The city location for business matches city where you are buying?
Did you do a forbearance? (Big mess)
As a self employed person my guess is you write expenses out of your income on the IRS taxes, how much?
Maybe you need to switch to a bank statement loan and we use the past 3 or 12 or 24 months deposits as income, if you are putting 10% down this may be the fix for you. I am licensed in Arizona so feel free to call me, happy to find a fix for you.
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Carla Freund
Raleigh, NC
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Lyn Sims
Schaumburg, IL
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Roy Kelley
Gaithersburg, MD
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Carol Williams
Wenatchee, WA
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Gary Frimann, CRS, GRI...
Gilroy, CA
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Fred Griffin Florida R...
Tallahassee, FL
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Kathleen Daniels, Prob...
San Jose, CA
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John Juarez
Fremont, CA
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Anna "Banana" Kruchten
Phoenix, AZ
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Wanda Kubat-Nerdin - W...
St. George, UT
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Richie Alan Naggar
Riverside, CA
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Ron and Alexandra Seigel
Carpinteria, CA
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Lori Rosenbarker
Yuma, AZ
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Doug Dawes
Topsfield, MA
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Diana Zaccaro Broker A...
Cocoa Beach, FL
3,349,229
Lori, your lender "should" be able to explain to you "what happened".
They look at assets, income, debt, ratios, credit scores, and much more.
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Carla Freund
Raleigh, NC
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Carol Williams
Wenatchee, WA
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John Juarez
Fremont, CA
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Wanda Kubat-Nerdin - W...
St. George, UT
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Ron and Alexandra Seigel
Carpinteria, CA
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Lori Rosenbarker
Yuma, AZ
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Doug Dawes
Topsfield, MA
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Diana Zaccaro Broker A...
Cocoa Beach, FL
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Kathleen Daniels, Prob...
San Jose, CA
1,056,097
Caroline Gerardo
can possibly illuminate . . . she's done and seen it all!
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Carla Freund
Raleigh, NC
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Carol Williams
Wenatchee, WA
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John Juarez
Fremont, CA
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Anna "Banana" Kruchten
Phoenix, AZ
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Wanda Kubat-Nerdin - W...
St. George, UT
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Richie Alan Naggar
Riverside, CA
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Lori Rosenbarker
Yuma, AZ
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Doug Dawes
Topsfield, MA
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Lyn Sims
Schaumburg, IL
3,138,121
Contact a local lender to ask this question. The best to you Lori!
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Carla Freund
Raleigh, NC
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Lyn Sims
Schaumburg, IL
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Carol Williams
Wenatchee, WA
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John Juarez
Fremont, CA
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Ron and Alexandra Seigel
Carpinteria, CA
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Lori Rosenbarker
Yuma, AZ
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Doug Dawes
Topsfield, MA
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Diana Zaccaro Broker A...
Cocoa Beach, FL
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Kathleen Daniels, Prob...
San Jose, CA
8,005
Thank you all for the insight. It all makes sense and yes, the lender should have taken the time to explain it to me but when I asked her, she said, "things just change and with interest rates going up that can play a factor". P.S. I did get pre-approved for $225K. I will build my income more and hold off for a bit.
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Joan Cox
Denver, CO
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Wanda Kubat-Nerdin - W...
St. George, UT
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Carol Williams
Wenatchee, WA
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Diana Zaccaro Broker A...
Cocoa Beach, FL
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Fred Griffin Florida R...
Tallahassee, FL
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Kathleen Daniels, Prob...
San Jose, CA
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John Juarez
Fremont, CA
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Anna "Banana" Kruchten
Phoenix, AZ
1,092,747
There are many reasons this could happen and you have a great answer from Caroline Gerardo (as always). One other thing to consider is that your credit report may be one part of the problem.
Assuming that you used the same lender and loan officer both times, the lender should have explained this to you. If you were denied a loan, they should have told you that under the Fair Credit Reporting Act (FCRA) you are entitled to a free copy of the credit report from the bureau the lender pulled.
It's always a good idea to pull all three credit reports, review them and dispute any inaccurate items before applying for a loan or credit. You can get a free credit report from each bureau once a year but it probably won't include your credit score. I recommend also pulling from www.FICO.com to get both the report and scores. There is a charge for that but it is well worth it. There is a high percentage of errors on credit reports and that may be one part of the problem. (Former mortgage broker here).
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Carla Freund
Raleigh, NC
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Joan Cox
Denver, CO
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Carol Williams
Wenatchee, WA
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John Juarez
Fremont, CA
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Anna "Banana" Kruchten
Phoenix, AZ
-
Lori Rosenbarker
Yuma, AZ
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Wanda Kubat-Nerdin - W...
St. George, UT
-
Ron and Alexandra Seigel
Carpinteria, CA
5,772,575
Caroline Gerardo has a good answer that may help you. A
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Carol Williams
Wenatchee, WA
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Kathleen Daniels, Prob...
San Jose, CA
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Diana Zaccaro Broker A...
Cocoa Beach, FL
-
John Juarez
Fremont, CA
-
Anna "Banana" Kruchten
Phoenix, AZ
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Lori Rosenbarker
Yuma, AZ
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Wanda Kubat-Nerdin - W...
St. George, UT
921,504
There may be a difference between Qualified and Approved.
Pre-qualified rarely involves verification.
Approved means they confirmed the data provided and collected history.
I do not know if you use the terms interchangeably or intentionally.
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Carol Williams
Wenatchee, WA
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John Juarez
Fremont, CA
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Wanda Kubat-Nerdin - W...
St. George, UT
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Ron and Alexandra Seigel
Carpinteria, CA
-
Lori Rosenbarker
Yuma, AZ
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Doug Dawes
Topsfield, MA
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Diana Zaccaro Broker A...
Cocoa Beach, FL
1,205,863
times do change things and a belated welcome to AR.
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Carol Williams
Wenatchee, WA
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John Juarez
Fremont, CA
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Anna "Banana" Kruchten
Phoenix, AZ
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Wanda Kubat-Nerdin - W...
St. George, UT
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Lori Rosenbarker
Yuma, AZ
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Doug Dawes
Topsfield, MA
1,201,302
Sorry, I can not provide any guidance on this. Your best bet is to contact your lender for an explanation.
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Joan Cox
Denver, CO
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Kathleen Daniels, Prob...
San Jose, CA
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Diana Zaccaro Broker A...
Cocoa Beach, FL
-
John Juarez
Fremont, CA
-
Wanda Kubat-Nerdin - W...
St. George, UT
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Ron and Alexandra Seigel
Carpinteria, CA
1,322,519
You should talk to Caroline Gerardo.
Without details, it is hard to know why you received such a vastly different qualification amount.
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Wanda Kubat-Nerdin - W...
St. George, UT
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Joan Cox
Denver, CO
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Carol Williams
Wenatchee, WA
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Kathleen Daniels, Prob...
San Jose, CA
-
Diana Zaccaro Broker A...
Cocoa Beach, FL
3,589,741
Caroline Gerardo you are a rock star! Good luck Lori
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Wanda Kubat-Nerdin - W...
St. George, UT
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Carol Williams
Wenatchee, WA
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Kathleen Daniels, Prob...
San Jose, CA
-
Diana Zaccaro Broker A...
Cocoa Beach, FL
-
John Juarez
Fremont, CA
2,784,416
You definitely want Caroline Gerardo for a neighbor1
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Kathleen Daniels, Prob...
San Jose, CA
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John Juarez
Fremont, CA
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Anna "Banana" Kruchten
Phoenix, AZ
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Lori Rosenbarker
Yuma, AZ
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Wanda Kubat-Nerdin - W...
St. George, UT
906,077
Is your lender the same this time as before? Something probably changed. There are so many factors. Did your credit drop? Could it be a lack of credit? Did your income change? Was it the higher interest rates? Talk to your lender.
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Joan Cox
Denver, CO
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Diana Zaccaro Broker A...
Cocoa Beach, FL
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Wanda Kubat-Nerdin - W...
St. George, UT
5,237,947
If your loan officer can't explain it, time to change lenders!
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Lori Rosenbarker
Yuma, AZ
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Wanda Kubat-Nerdin - W...
St. George, UT
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Lyn Sims
Schaumburg, IL
1,571,049
How has your credit been after the sale? Lots of factors go into a loan approval. Income different? Loan to Value change?
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Joan Cox
Denver, CO
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Wanda Kubat-Nerdin - W...
St. George, UT
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Diana Zaccaro Broker A...
Cocoa Beach, FL
636,127
I heavily recommend you have a clear discussion with your Loan Officer about the specific variables that are present. Caroline Gerardo provided a strong answer with the limited information contained in the initial question. While lending guidelines take a holistic approach to the bigger picture financial profile, there are some hard stops in terms of falling outside of approval guidelines for topics such as Debt-to-Income (DTI) ratios (measuring cash flow), Loan To Value (LTV) ratios (measuring equity) along with credit, assets, time on job, method of income receipt, etc.
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Thomas J. Nelson, REAL...
La Jolla, CA
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Lori Rosenbarker
Yuma, AZ
5,877,179
I always refer my clients to my lenders to get approved.
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Diana Zaccaro Broker A...
Cocoa Beach, FL
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Lori Rosenbarker
Yuma, AZ
2,245,575
You are asking this group and whoever the guy or gal that said you don't qualify... why? They gotta tell you why and work arounds to change the red thumbs down to a green thumbs up Lori Rosenbarker ! Banks want, need to make loans. Or shop for another bank that can custom make the best financing fit for you in your present financial situation is my advice.
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Lori Rosenbarker
Yuma, AZ
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Wanda Kubat-Nerdin - W...
St. George, UT
7,862,331
Your trusted local mortgage loan officer may be the best person to clarify your situation.
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Diana Zaccaro Broker A...
Cocoa Beach, FL
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Wanda Kubat-Nerdin - W...
St. George, UT
6,416,169
Caroline knows this stuff well.
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Wanda Kubat-Nerdin - W...
St. George, UT
765,973
Something changed, either your credit rating or income is most likely the culprit.
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Wanda Kubat-Nerdin - W...
St. George, UT
86,661
Please visit the link for your information:
https://www.compareclosing.com/blog/factors-for-mortgage-qualification/
18,274
Hello Lori, it's probably of higher rates, based on $300,000 in the past 3 months the monthly payment increased for about $200. This might be an issue here. Also, I would check your FICO if it didn't drop because of your closed credit tradeline (selling your home). Another reason is a lender. Some of them have overlays in place, increased required DTI or LTV. here is an article that can help you.
https://fhalend.com/what-is-an-overlay-in-mortgage-lending