Working with reputable lenders...

How is it that in today's market, we are still coming across lenders that are not fully qualifying their clients?!?!

My partner has been working a short sale file for 2 years and finally had everything in line with both banks that she had to negotiate hard with! And a week before closing she finds out that the buyers credit isn't good enough to get final commitment for their loan??? And this is after they gave her the run-around saying they needed a 30 extension to ensure that the well water testing was in... however, that wasn't the case she soon found out! They did need the water test to pass, but more importantly they really needed time to check on the buyers credit score!

But how did the buyer get an approval letter if their score was too low in the first place?! When she asked the lender why they gave them a pre-approval letter, they told her that they gave the letter based on the buyers future score! What in world is going on here? I sympathize with the buyer because he has actually invested money in the property and has done work there to ensure that they passed any appraisal issues and township inspections! How does a lender like this stay in business? How could they not inform their client of the situation?

Stories like this are exactly why we only use reputable lenders that we know are honest and upfront about all situations! I want to know when they cannot approve a buyer and we want a plan in place to better a buyers credit if needed! In markets like the one we are in, there's too thin of a line to work with anyone that you don't have faith in...