Paid $400 to a mortgage broker for a pre-approval that fell apart in 3 days

I put down $400 for a broker's pre-approval letter in Austin last spring because the bank wanted 2 weeks and I needed to make an offer fast. The broker promised be approved at 6.8% and the seller's agent accepted my bid, then the underwriter flipped the file and said my side gig income didn't count, so the whole deal died and I ate the fee. Has anyone else gotten burned by paying upfront for broker pre-approval when a free bank one would've been slower but solid?

1 comments

1 Comment

ninamartin9d ago

Wait, is paying upfront for broker pre-approval actually the norm now? I used to think it was just a way to show sellers you were serious, so I never questioned the fee. But hearing your story makes me realize how messed up that is when the bank's free one would've at least been honest about the timeline. I mean, $400 for a piece of paper that fell apart in 3 days is basically paying to get ghosted by an underwriter. Maybe it's just me, but I'd rather wait the two weeks and know the approval is solid than throw cash at a broker who's just trying to close a deal fast.