lender also verifies tax returns have been filed if the prospective buyer is a self-employed borrower. A pre-approved buyer is truly ready to purchase. In this case, an agent named Tammy was selling a house, representing the seller. After conducting showings and negotiations, a buyer made an acceptable offer on the house, which Tammy’s seller-client accepted. The buyers were working with a local lender who said that they were pre-qualified and could obtain approval for the loan to buy the house. Tammy was a bit concerned, so she engaged the lender directly to feel him out about the loan status. The lender stated clearly that the loan was “certain” to be approved. The closing was set up for the end of the month and the seller started packing up her possessions in preparation to move. She found an apartment to rent, signed a lease on the rental, and started moving her things into the new home so that her current house would be clear in time for closing. Between the deposit for the apartment and the charges for the moving truck and crew, she spent more than $1,000 on moving. Three days before the closing was scheduled to occur, the lender notified Tammy and the seller that the loan was denied, and the buyer would not be purchasing the house. This put Tammy’s client, the seller, in a horrible position. She was still liable for the mortgage payment on her house, plus she was now liable for a rent payment on a lease for an apartment. She had already spent money on moving. She had to spend more money moving back into her house and had to work out a crazy arrangement with the apartment’s
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