Stated income mortgage (PMI, home loan, interest rate, approved)

[endymion]

-We're applying for a home loan of $202k.
-Home appraises for $217k.
-Down payment is $20k cash.
-Stated Income loan using wife's 774 FICO (mine is much lower).
- Her employment and salary are verifiable.
-We're using a mortgage broker who's getting us a loan with Countrywide and says all is well, no problem, etc.
-Underwriter has asked for clarification on a couple of things such as wife's previous last name, an address, etc.
-Underwriter is now getting a second appraisal to be sure home is worth the loan amount.

We're a nervous wreck waiting to hear that our loan has been approved. It seems like it's taking forever, as we signed a contract on 8/02/07. We're both getting concerned, but our broker says not to worry, that he sees nothing on our application that could be a deal-breaker. He says this is typical of the process and it just takes time.

What do you think? Comments, please. If this looks like a solid deal, please let us know!

Thank you!!!

[renriq02]

Why are you stating income? How low is your score?
The reason why i'm asking is because with 10% down, you can go with a low score. Every lender has a different tier, and they usually go as low as 620 WITHOUT it affecting the rate.
On Stated Loans, your rate should be higher, and you might be paying a higher PMI payment.
What do you mean that your wife's income is verifiable...?

If a lender asks for a 2nd appraisal, and the house is less than 500k, then you should start looking for another lender.
Houses that are 500k MIGHT need a 2nd appraisal.
Anything over 1million usually has 2appraisals.
Another question that might be a factor is if the area is in a declining area?
If it's not, then you definitely need to start looking for another lender.

Either way..it never hurts to shop around.

Originally Posted by endymion

-We're applying for a home loan of $202k.
-Home appraises for $217k.
-Down payment is $20k cash.
-Stated Income loan using wife's 774 FICO (mine is much lower).
- Her employment and salary are verifiable.
-We're using a mortgage broker who's getting us a loan with Countrywide and says all is well, no problem, etc.
-Underwriter has asked for clarification on a couple of things such as wife's previous last name, an address, etc.
-Underwriter is now getting a second appraisal to be sure home is worth the loan amount.

We're a nervous wreck waiting to hear that our loan has been approved. It seems like it's taking forever, as we signed a contract on 8/02/07. We're both getting concerned, but our broker says not to worry, that he sees nothing on our application that could be a deal-breaker. He says this is typical of the process and it just takes time.

What do you think? Comments, please. If this looks like a solid deal, please let us know!

Thank you!!!

[TimtheGuy]

Countrywide loves calling for appraisal reviews. They are very picky when it comes to the property. I will say the review usually passes as well. They have some tolerance.

Are you "stating" an income that is realistic for your wife's position? It has to be realistic. eg. You can't be a bank teller and "state" that you make $150k/year.

[renriq02]

why not? lol

Originally Posted by TimtheGuy

Countrywide loves calling for appraisal reviews. They are very picky when it comes to the property. I will say the review usually passes as well. They have some tolerance.

Are you "stating" an income that is realistic for your wife's position? It has to be realistic. eg. You can't be a bank teller and "state" that you make $150k/year.

[UseJeff]

If you're to the point where Cwide ordered a 2nd appraisal then I think that's all you really need to be concerned with. They would not order a 2nd appraisal if everything else had not already been cleared and approved. At least all the major concerns of approval... there are often documents they need through the process to close.

Bottom line, your broker has all your info, and can likely send you to another lender very quickly. So if they cut your value, or just don't like the house...you move on. Your broker should be able to fastrak the loan through someone else and get to signing within 3 days with a full package. Granted, if the new lender doesn't like the property... that could be a concern. At that point, you may need to look for another one.

Overall though, I wouldn't stress too much. See how the appraisal review turns out, and go from there.

[renriq02]

i would look for another lender that your broker can supply....
the saying goes...you better be safe than sorry.

you have nothing to lose by submitting your file somewhere else especially if CW is taking their sweet time with the process.

i know at least 6-7 loan officers who were getting the same run arounds with American Brokers Conduit, and HomeBanc mortgage.....come to find out that they both stepped out of the mortgage industry.
over 3000 mortgages were not funded at the closing table.

in this volatile market you cant wait for answers.
it's obvious that big lenders have been filing bankruptcy, and nobody couldnt even imagine this would happen.

my point is to make sure you always have options.
if this was 3yrs ago...then some ppl would have a point.
BUT IT'S NOT!

i dont think Countrywide Mortgage is going down, but i wouldnt bet my mortgage on it either.

Originally Posted by UseJeff

If you're to the point where Cwide ordered a 2nd appraisal then I think that's all you really need to be concerned with. They would not order a 2nd appraisal if everything else had not already been cleared and approved. At least all the major concerns of approval... there are often documents they need through the process to close.

Bottom line, your broker has all your info, and can likely send you to another lender very quickly. So if they cut your value, or just don't like the house...you move on. Your broker should be able to fastrak the loan through someone else and get to signing within 3 days with a full package. Granted, if the new lender doesn't like the property... that could be a concern. At that point, you may need to look for another one.

Overall though, I wouldn't stress too much. See how the appraisal review turns out, and go from there.

[mbmouse]

I have noticed that with many lenders going under, the good ones are still in business and busier than ever. Underwriting that used to take 24 hours is now taking 5 days! I agree with the other poster, if they are at appraisal review stage, you should be fine. I would ask your broker if the lender is doing an "appraisal review process" or a "field review"? If it is just a standard review, they might cut it back a few thousand, but it looks like from your numbers this would not effect you, just save you a few bucks on HOI.
This is typical in markets where there was "over inflating" of house values, lenders flavor of the week is to cut appraisers values by a bit.
If It were me, I'd give it the day or so and see what happens before switching especially if you are locked in.
Good luck and let us know how it goes.

[renriq02]

was it a 2nd appraisal ordered or BPO....how long did the owner own the property ?

[deuterdu]

Originally Posted by endymion

-We're applying for a home loan of $202k.
-Home appraises for $217k.
-Down payment is $20k cash.
-Stated Income loan using wife's 774 FICO (mine is much lower).
- Her employment and salary are verifiable.
-We're using a mortgage broker who's getting us a loan with Countrywide and says all is well, no problem, etc.
-Underwriter has asked for clarification on a couple of things such as wife's previous last name, an address, etc.
-Underwriter is now getting a second appraisal to be sure home is worth the loan amount.

We're a nervous wreck waiting to hear that our loan has been approved. It seems like it's taking forever, as we signed a contract on 8/02/07. We're both getting concerned, but our broker says not to worry, that he sees nothing on our application that could be a deal-breaker. He says this is typical of the process and it just takes time.

What do you think? Comments, please. If this looks like a solid deal, please let us know!

Thank you!!!

If your wife's income is verifyable I do not understand why the L/O is going stated. Stated income loans carry a higher interest rate than full doc loans. Lenders will often check the value of a home aside from the appraisal especially in a declining market.
I would relax as much as you can. Buying a home is always stressful.

[renriq02]

yep that's what i said....