On Your Side: Suggestions for buying a home

JACKSONVILLE, Fla. -- The On Your Side team has suggestions to people who are having issues with buying a home.

Randy of Jacksonville said he was approved to guy a home, but the lender apparently backed out of the deal. He said someone raised the amount, which left him in a tough spot.

FCN did some research:

1. According to Frontdoor.com, pre-approval for a home loan does not mean the bank guarantees you the loan.

Frontdoor.com said it means that you are approved to get the loan, unless something doesn't go like it should. The next step, or a commitment to the loan, usually comes after the bank has had the house appraised to be sure the price you pay is not higher than the home's market value. Frontdoor.com said this protects them in case you default on the loan.

2. According to MSN Real Estate, lenders may pre-approve you and back out later. The site said more than 25 percent of loans that are pre-approved are rejected. The site goes on to say that there is no standard industry definition, so your particular pre-approval depends on your loan officer.

FCN suggested he do the following. If you are in a similar situation, you may want to consider this as well:

1. Contact the US Department of Housing and Urban Development

2. Check for mortgages for home buyers and homeowners via USA.gov

3. Check for FHA Loan assistance

4. Consult these 10 tips for buying a house from CNN Money


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