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Old 11-23-2013, 03:13 PM
 
Location: Woodbridge, VA
31 posts, read 46,024 times
Reputation: 13

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So I am finally settled and decided to purchase a house in woodbridge va, applied with NFCU for home mortgage application, a loan officer called and asked few questions about how much of a house, income etc.
Long story in short I asked for a 30yrs conventional loan for $350k which turned out to be approved but ended up liking a house for $405k, asked for little more and was approved by loan officer. I make $95k a year been in my job for 15 months 100% commission based, last job was also commissioned same field and made $55 last year. I am putting 5% down and owner offering $6k to closing and bank offered $2500, credit score 740, only debit is student loan with $144 monthly payment.

I am trying to see what are my chances to have this approved as it went to underwriter with a contract and all the documents needed? I am not trying to have a feeling of getting denied after going through all this as I have done home inspection and given Dec 31st for the closing date and not sure if it is 100% approved where as loan officer says as long everything I provided could be verified it should be fine. If any of you can share any experience based on my info would be highly appreciated.

Last edited by BT00; 11-23-2013 at 03:24 PM.. Reason: adding
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Old 11-23-2013, 06:55 PM
 
Location: Southern California
4,350 posts, read 4,931,746 times
Reputation: 2129
Just keep your docs orderly in case you need to go to another lender. Ask how long will it take to hear back from underwriting. Dec 31 is actually not too far always with all of the holidays. Sorry couldn't be of more help, stock up on your cash just in case you need to put more money down to qualify.
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Old 11-23-2013, 07:12 PM
 
Location: Austin
7,077 posts, read 16,889,211 times
Reputation: 9484
I don't see how you will qualify for $405k as they aren't going to use the $95k amount. Since you haven't been there 2 years, they are going to average your $55k with the $95k, and that's a mere $75k. Unless you have a large down payment, I don't see how you could qualify for a loan more than $275k. But I'm not a mortgage person, I'm a Realtor, but this is what I see with my clients everyday. About 3.5 times your salary with "typical" situations of debt ratios.
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Old 11-23-2013, 07:50 PM
 
4,626 posts, read 7,197,499 times
Reputation: 4735
The other issue being 100% commission basis.. are your busines expenses. Do you write these off or are they employer reimbursed?

NFCU is not easy. I gave up and went with a local bank which turned out to be a better deal.
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Old 11-24-2013, 05:52 AM
 
Location: Southern California
4,350 posts, read 4,931,746 times
Reputation: 2129
Quote:
Originally Posted by FalconheadWest View Post
About 3.5 times your salary with "typical" situations of debt ratios.
I've seen them go much higher in my area. What is the property tax rate in your area

Quote:
Originally Posted by ocngypz View Post
The other issue being 100% commission basis.. are your busines expenses. Do you write these off or are they employer reimbursed?

NFCU is not easy. I gave up and went with a local bank which turned out to be a better deal.
Good point

Do you have a form 2106 in your tax returns, subtract that number from your income.
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Old 11-24-2013, 11:18 AM
 
Location: Woodbridge, VA
31 posts, read 46,024 times
Reputation: 13
no write offs,
Thanks for all your inputs. The only thing that surprises me that why would a loan officer give me a preapproval for $410k based on all the information and documents he requested, my only concern is waiting this long for closing date and saying it didn't get approved later?
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Old 11-24-2013, 02:10 PM
 
Location: Austin
7,077 posts, read 16,889,211 times
Reputation: 9484
Quote:
Originally Posted by BT00 View Post
no write offs,
Thanks for all your inputs. The only thing that surprises me that why would a loan officer give me a preapproval for $410k based on all the information and documents he requested, my only concern is waiting this long for closing date and saying it didn't get approved later?
Not all mortgage people are created equal. Some are just order takers. He might not understand that you receive 100% commission and that your income was vastly different from last year to this year. When you have such different income levels, the underwriter is not going to just accept the higher number. They will average the numbers, and sometimes not include them at all if there isn't enough time to prove the higher number is sustainable.

Also, you might be approved pending a large down payment, as I stated above. Anyone can qualify for a certain price point if they have cash. It's the actual loan amount that matters.
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