Can you take legal action to a lender home mortage for making a false promises?

They told us that we were pre approve and told us that everything was looking good. The checked our credit report and everything went good. Now all of the sudden they said sorry we can't provide you with a loan. Due to, to many credit. But why they didn't say something before?Can you take legal action to a lender home mortage for making a false promises?
Truly, pre-approvals aren't worth the paper they are written on. If they provided you with a final commitment letter, I would say that was a different story. Most Real Estate contracts are contingent on final financing. Therefore, since your lender backed out, you are not obligated to buy what you committed too.





I don't think you much ground to stand on by what you are telling me. Alot of times, until theyn get the credit reports back, they just issue the pre-approval as a way of getting customers/clients.Can you take legal action to a lender home mortage for making a false promises?
Pre-approvals come with strings attached. It's a normal part of the industry and you wont get monetary damages. Typically there's fine print like ';subject to credit approval'; even though they already pulled your credit.
That is not a false promise. A pre-approval is not a commitment to provide financing, only a precursory review of your financial situation. Typically, your situation means that there are some things in your past that are only found upon deeper review.





I know its not what you want to hear. A sub-prime lender may be your best choice.
I thought that was going to happen to us too. The mortgage company gave us the good faith and told us to find a realtor. We did and found the house + put money down and signed a contract on a house. Then when it came down to getting the loan, I had to come up with 4 credit lines on my husband, it was so stressful. we were getting mad because we thought we had the loan too, then the underwriter requested and needed all this other stuff. I just kept trying to get what they needed. we just found out like a month later we got approved. The good faith says it is subject to other terms and conditions. I know how you feel, you think you got the loan, then its upsetting when you dont. we felt like they lied to us too, but read your good faith papers throughly....it does say that...we had to pay some of our creditors...keep looking and pay off your credit...the main ones that show up.... I wish they would of told us all this in the beginning too...it was upsetting...