Loan process to get to closing (mortgage, credit, first time home buyer)

[Jrf0112]

Hi all,

I posted recently about worrying about closing coming up on 4/27

I appreciate everyone's feed back and info it was helpful, but now I have a more complexed question with additional detail in hopes I can get some more great feedback.

So my husband and I are first time home buyers. He has excellent credit, while I messed mine up when younger and it isn't as great as it should be. Currently according to Fico with the three credit bureaus I hold a 654, 643, and 650-- we were pre approved (which really means nothing) but we are working with a house much below our pre approval suggestion, we have all the money needed for a down payment and our closing costs are to be paid by the seller, like I stated in my previous thread all of our employment verifications etc have came back great. At this point we were eligible for the 3.8 interest, now our mortgage lender is saying we might not be-- something about variable rate which WE CANT DO. God forbid it shoots up to 15% we would be screwed. Now my husband getting all nervous and I'm just feeling like **** because it's my fault, the lender is to have the underwriter pull a new score tomorrow and hopefully all is wel with the step so we can move on to a commitment letter.

Any rested situations/feedback/advice would be greatly appreciated.

[chicagoliz]

Ask them about giving the loan to your husband in his name alone. If you're taking out much less than you qualified for, it shouldn't be an issue, unless you are making significantly more money than he is, and the approval was primarily based on your income.

If his income alone would qualify for the loan, then go that route.

[MikePRU]

It's not entirely clear what you're saying. Are you saying that your lender promised you a fixed rate 30 year mortgage at 3.8% and now they want you to take a loan with a variable rate? Why would you qualify for one and not the other especially if you're buying a home well under your pre-approval level?

[LilyLeftTheValley]

Is your FTHB loan through the bank, or was your bank one of the lenders recommended from another program? (Like this program.)

We closed on our first home through a program for MA residents just last month, and our bank happened to be one of the lenders, but we had some similar issues as to what I read in both this post and your other I found when I looked. They didn't try to change us to a variable, but they did raise the rate despite the lock we paid for--I'll send you a PM about some things we went through that may be similar to what you're going through now.


The main difference with us is we always did the paperwork from the beginning in my spouse's name only. I freelance with the occasional PT fill in, so we knew my financials would be a nightmare and a half. We kept them out as much as we could for that reason.

You can try to change the mortgage to be just in your spouse's name, but you won't know until you ask. If your contact at the bank is still being a jerk, see if you can change to another mortgage servicer agent.

[sal1181]

Hopefully you are working with a good local mortgage company and not a big bank.

[ryanms3030]

Rates also change daily so nobody can promise you a rate. They can quote something but if the loan get approved two weeks after that then rates may go up or down.