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Old 10-02-2013, 08:18 PM
 
9 posts, read 16,158 times
Reputation: 10

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Hi! First off i am new to your forum, but I have read it on and off for about 3 weeks now. I hear a lot about bad credit, etc. and about them worrying. My problem is I have excellent credit, but I accidentally left some possibly important things out of my qualification because i thought they wouldn't be necessary and now my loan is about to get sent off into underwriting and I'm very nervous!

Me and my fiancee are applying together. We made an offer on a house for $164,900 (appraised at $169,000).

We are doing a conventional mortgage with 20% down. We have about $60,000 saved up between us, and it only requires $37,000 to close

We both have 780+ credit...

The only problem is that I didn't disclose to them that I am renting! I thought it didn't matter! But now that the loan docs are all signed about, I fear that if i speak up it will delay my application, and I can't afford to go past my closing day... We've only been renting for 6 months and we hate renting!!

Since me and my fiancee have EVERYTHING but utilities at our parents address, we just assumed that we should put that there. That we lived with them and did not pay them rent. No one would ever know we lived in an apartment unless we told them.

Well our bank accounts tell a slightly different story if someone looks hard enough. We have a joint account which we didn't add to the application, since it usually has less than 500$ on it due to living expenses/rent. We transfer large amounts of money from our accounts we are using for the loan, with the mass amount of money, to that bank account to pay for rent/food/bills etc.

On our statements there are transfers for $1,000, $500 etc. to our shared account. And on my bank statement there was an electric bill last month.. That's the only thing that I would think was suspicious.

Is something as minute as this a deal breaker during underwriting? Or will they just turn a blind eye to our deal/credit and approve us? I don't know if something like "well our rent expires on our closing date anyways..." will fly as an excuse with something like this...

We have never missed a payment on any bills or rent, and the highest balance my fiancee had was when he purchased my engagement ring (2k) in February.

We close on October 31, and we are moving out of the apartment November 4. It is a very close call but it works out perfectly, I'd hate for it to come to a screeching halt when they ask what's up with our "secret account" and why we are paying rent.. etc..

Thanks much for your replies and opinions on the matter!!
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Old 10-02-2013, 11:51 PM
 
3,317 posts, read 7,253,255 times
Reputation: 4095
You lied on a mortgage application. Period.

You need to contact your mortgage company immediately tomorrow morning, and tell the truth. They will find out. And you should be a Hell of a lot more worried about things than just getting turned down.

Tell the truth. They will add the rental info in, contact your landlord for the Verification of timely rent payments, ask you for cancelled checks or proof of payments, and likely close the loan.

Tell the truth.

Last edited by Pfhtex; 10-03-2013 at 12:00 AM..
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Old 10-03-2013, 06:42 AM
 
1,263 posts, read 2,643,743 times
Reputation: 1872
Quote:
Originally Posted by emaki View Post
{snip}
Since me and my fiancee have EVERYTHING but utilities at our parents address, we just assumed that we should put that there. That we lived with them and did not pay them rent. No one would ever know we lived in an apartment unless we told them.
{snip}
You intentionally lied about where you live in addition to the rent you pay. Lying on a mortgage application is loan fraud. Didn't you read the section on your application where it said you were swearing everything was true under penalty of Title 18, US Code 1001, etc?

Your lender would be justified in declining you based on your swearing false statements. I can't predict what they will do, but there are some lenders who would be afraid that you're lying for nefarious reasons and refuse to work with you.

Does your driver's license and/or tax return show your rental as your address?
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Old 10-03-2013, 07:30 AM
 
9 posts, read 16,158 times
Reputation: 10
Thank you for the responses. It wasn't till after i signed all the paperwork that I forgot I said we didn't rent. The family/friends Ive talked to about it have all said "Don't worry, you'll be fine" so it's nice to hear another side of the story.

Basically, A month before i found my house, i got prequalified over the phone. I wasn't expecting to find a house so quickly, my rent was going to be up and I was going to move back into my parents before I found a house (so i thought) So I said i wasn't renting.

Fast forward 4 weeks and I'm buying a house and the close date is the same as my move out date + a few days. We've already had rent done and paid for til the move out date.

Every address except the electric bill is for my parents house, same with my fiancee. The electricity is under my name. We use internet through our cell phone plan, and don't have anything else like car insurance etc. (under parents names/addresses)

The apartment was just training wheels for our relationship basically, and its been a rough 6 months (apartment wise, things breaking not getting fixed, dodo brains in the office dont know what they are doing). The apartments have changed ownership a month ago and I asked them about our rent and they claim they have NOTHING from the previous owners. So basically i've only been renting for 2 months... Though I have bank statements with rent on them (the shared account that i did not include in money for proposed closing costs) but the system i used to pay before is no longer there, I have printouts of the pay receipts though.

Also nothing shows up on my credit report related either.

Last edited by emaki; 10-03-2013 at 07:51 AM.. Reason: Additional Infos
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Old 10-03-2013, 07:38 AM
 
1,242 posts, read 1,170,547 times
Reputation: 3606
If you're buying a house together and renting together for 6 months was training wheels for your relationship it might be best if your loan gets put on hold.

Not disclosing your true financial information is a problem. if you werent worried about it you should have mentioned it. Call your lender.
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Old 10-03-2013, 07:40 AM
 
9 posts, read 16,158 times
Reputation: 10
Haha! I have no problems with the relationship, we've been together for 10 years but never actually lived with each other. So its not an issue, That's why we have so much money saved up in the first place...

I am in the process of gathering my documents. Hopefully i can submit it before it goes to underwriting.
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Old 10-03-2013, 07:51 AM
 
Location: Richardson, TX
10,119 posts, read 16,716,797 times
Reputation: 24600
Pick up the phone and call your loan officer now.
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Old 10-03-2013, 08:50 AM
 
9 posts, read 16,158 times
Reputation: 10
Well I called.

She said our package was going to be sent off to the underwriter today. She said that since we already paid our last month of rent that it shouldn't matter, and that we've been on time so it won't affect the loan approval... She told me if the underwriter doesn't ask for any explanations on the transactions then we are fine, and if they do then she will require the documents and not to worry if I've never missed a rent payment.

She said that our loan is very easy and straight forward and might move on without any problems and to stick it out.

Soo.. we'll see :s
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Old 10-03-2013, 09:07 AM
 
16,724 posts, read 13,670,338 times
Reputation: 40996
Quote:
Originally Posted by emaki View Post
Haha! I have no problems with the relationship, we've been together for 10 years but never actually lived with each other. So its not an issue, That's why we have so much money saved up in the first place...
That, and from what I can tell, Mommy & Daddy are paying (at the very least) your car insurance too. It's sure going to be a shock when you start having to pay all of your bills on your own.
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Old 10-03-2013, 09:18 AM
 
9 posts, read 16,158 times
Reputation: 10
Yes, it is their way of helping us get on our feet. We are 23 and not a lot of people buy houses when they are only 23, at least with the down payment we have anyway.

Like some parents help with down payment, they just helped us save up all our money.

Our auto insurance is fairly cheap, but for 6 months it wasn't worth switching over and all that. Would have to get the title switched, etc.

Health insurance is also covered til we are 26, so we aren't getting married until then.

Our house payment comes to around 20% of our total monthly income. We will be fine in the financial department.
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