Home loan pre-approval letter no guarantee, experts say - WSFA.com Montgomery Alabama news.

Home loan pre-approval letter no guarantee, experts say

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PHOENIX (CBS5) -

Home buyers beware - home loan pre-approval letters may be a little misleading, because it won't guarantee a deal will get done, according to real estate experts.

Tony and Angela Kassube signed a contract to build their dream home in North Phoenix and received a conditional loan approval from Pulte Mortgage.

"I assumed everything was OK," said Angela Kassube. "If there was a problem they would have brought it up, instead of giving us conditional loan approval."

But their dream soon turned into a nightmare, when the deal fell through.

The couple told CBS 5 News that they were misled about the likelihood they'd get a loan, and even discouraged from reaching out to another lender.

"Tony and I tried to use a different lender," said Angela Kassube. "We brought the issue up and the sales rep said, well, I'm going to charge you $2,500, plus I will not give you any closing credits if you do that."

And the story doesn't end there.

In addition to losing the house the Kassubes were told they would not be getting back their $10,520 in deposits.

"When they called us and said we're going to send you a cancellation agreement, and by the way, you won't get any earnest money back," said Tony Kassube. "It felt like we were being robbed."

According to Pulte, the Kassubes had breached their contract by not securing financing and we're not eligible to receive their deposits back.

Pulte did offer the couple $3,000 if they agreed to sign the cancellation agreement.

The couple refused.

"We did everything we could to help this couple and did nothing wrong," said Pulte spokesperson Jacque Petroulakis. "It is not appropriate to make any additional comments on an individual loan."

The couple is hoping Pulte will reconsider and give their deposits back, so they can afford to buy another house.

"The whole purpose of a builder being able to retain a deposit is because they've suffered damages," said Angela Kussube. "Pulte has not suffered any damages. We've received word that they just sold the house for $50,000 more than the contract price my husband and I agreed to."

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