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Old 07-22-2014, 09:10 AM
 
10 posts, read 43,775 times
Reputation: 15

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Our loan application has just gone into underwriting, and I'm a terrified mess! I've never applied for a mortgage before (my husband purchased our home in 2002, before we were married). I'm so scared that something will fall apart and they will deny us (we are also selling our current home, which everything is finished up and just waiting on buyer's clear to close). We are doing a $0 down VA loan. We were pre-approved with no "red flags" on Fannie Mae's DU, and our LO keeps reassuring me that he sees no issues with the loan being approved. But I keep reading too many horror stories!

Some info:

Credit scores for me: 735 724 701 DH: 699 679 675

DTI (front end) would be 14%, back-end 21% . These figures do not include our current mortgage since we are under contract, but if they did it would be 42% DTI for everything (cars, cc's, student loans, both mortgage payments). We don't have any other obligations that aren't already listed on our credit reports.

Gross 135,000/yr (about 11K/month)
Both salaried employees - DH has been at his job for 4+ years. I've been at my job for about 1.5yrs, but went straight from last job (5 yrs) to this one (left on a Friday, started new job on a Monday). Have provided W2, tax returns, phone numbers for verification of both jobs, etc.

We have enough to cover closing costs in the bank as evidenced by statements, have $1500 in escrow as well (earnest money deposit).
Not a lot in standard savings acct but have 55K in investment/retirement (35K of it is vested/liquid). Not planning on using any of it to get this house, but are just listed as assets. All current statements for these accounts are in our file.

DH has 2 lates from 12/13 and 01/14 on his Capital One card - complete accidents, his due date somehow was changed and he didn't realize it or change it in our auto-pay in our bank account. Was corrected immediately once he realized it. Otherwise no collections or anything. We have not charged a dime to any credit cards since preapproval, haven't applied for credit, etc.

I'm worried about the 2 lates, and also that we don't have a lot of savings "in the bank" - it's mostly tied up in investments and retirement, but if we HAD to, we could cash it out. Not planning on doing this though.

Do you think we will be ok??
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Old 07-22-2014, 10:04 AM
 
3,317 posts, read 7,255,247 times
Reputation: 4095
Rest easy. Stop reading horror stories. You explained the different elements very well, which is a great indicator, and the numbers themselves look great.

You seriously look to be in excellent position. Don't let any little requests from the lender annoy you. You are going to be fine. The only issues that might come up would relate to the property itself, if the appraisal or inspection shows items that might need minor repairs.

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Old 07-22-2014, 10:56 AM
 
10 posts, read 43,775 times
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Quote:
Originally Posted by Pfhtex View Post
Rest easy. Stop reading horror stories. You explained the different elements very well, which is a great indicator, and the numbers themselves look great.

You seriously look to be in excellent position. Don't let any little requests from the lender annoy you. You are going to be fine. The only issues that might come up would relate to the property itself, if the appraisal or inspection shows items that might need minor repairs.

Thanks so much! Eases my mind to have a "3rd party opinion"....

Inspection was already done, and repairs we negotiated have been made. The VA appraisal got a little screwed up, it was re-assigned 3 times because appraisers kept going on vacation, but it's finally getting done tomorrow (16 days after it was ordered).
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Old 07-22-2014, 12:58 PM
 
3,317 posts, read 7,255,247 times
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Quote:
Originally Posted by jbrv View Post
Thanks so much! Eases my mind to have a "3rd party opinion"....

Inspection was already done, and repairs we negotiated have been made. The VA appraisal got a little screwed up, it was re-assigned 3 times because appraisers kept going on vacation, but it's finally getting done tomorrow (16 days after it was ordered).
What's a vacation? 8-/
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Old 07-25-2014, 09:17 AM
 
10 posts, read 43,775 times
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An update...or lack thereof, really. On 7/15 our LO said we were in underwriting and he'd have an answer by early this week at the latest. It's now Friday, 10 days later, and the only thing LO can say is "I haven't heard anything". The VA appraiser was just out to the house on Wednesday, but there's no report yet (I know it's a little early - OH specifies a 5 business day turnaround time per the VA site - but since the appraisal got pushed off on 3 different people over 2 weeks before someone even came out, I was hoping that the NOV would come a little sooner than later). I know that the loan can't be approved without the appraisal, but I was hoping to at least have conditions back by now (the appraisal of course being one).

We are supposed to close in 6 days (7/31), and there is no appraisal and LO hasn't heard anything from underwriting, 10 days in. LO went from saying "Yes, I still think we will close on 7/31" 3 days ago, to now avoiding answering that question and simply saying "I didn't get the appraisal yet" when by my Realtor today if the closing day still looks ok.

I'm getting a little nervous at the lack of answers....LO has everything from us - all copies of all paperwork including tax returns, paycheck stubs, bank statements (every time one of us gets paid, I send him updated paystubs and bank printouts from the bank), statements from all other asset accounts, LOE's for non-payroll deposits and inquiries....but since 7/15 there has been NO requests for anything except the signed copy of the pest inspection from the LO. This makes me think that an underwriter hasn't even looked at the file yet?

I'm quickly losing faith that we will close on time. Our current home has already been scheduled by the title company to close next week and I'm truly afraid that we will be homeless (well...living in my mom's basement). Do Loan officers truly not know where in the process a file is when submitted to underwriting, or is something up?
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Old 07-25-2014, 10:56 AM
 
3,317 posts, read 7,255,247 times
Reputation: 4095
Gut tells me LO is lying, that they do have the appraisal, and that underwriting turn times are incredibly long at that company. Take action today to prepare contingencies regarding moving/storage. You have to go "worst-case scenario" now.
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Old 07-25-2014, 11:39 AM
 
10 posts, read 43,775 times
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I already tearfully called my mom last night and asked if we could stay with her if need be....so we will definitely have a place to go. I am having a heart attack over selling our house when we don't even know for sure if we are fully approved to get a loan for the next! What a horrible feeling.

We are using a local bank and our LO is a really well-respected guy, I had several people recommend him when we were shopping for an LO, and he's been doing VA loans for a very long time - but this bank doesn't service loans, they sell them right off the bat. Their investors do the underwriting, so who knows where that is and how long it will take.

In the meantime I keep crossing my fingers that something will come through today! But have back-up plan in place if it does not. Really hoping it does not come to that, though.
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Old 07-27-2014, 10:41 PM
 
Location: El Dorado Hills, CA
3,670 posts, read 7,974,554 times
Reputation: 3748
I understand your concerns. Keep pushing the loan officer to get better info from underwriters. Appraisal is late and probably will be a few more days. It sucks but not much you can do about it.

Continue to be quick in getting any requested paperwork back to LO. It's crazy how much last minute stuff they can ask for.
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Old 07-28-2014, 05:56 AM
 
Location: MID ATLANTIC
7,598 posts, read 17,623,584 times
Reputation: 8078
Based on the information you have provided, I believe it is time to go to a 2nd lender for an opinion. Be up front where you are in the process and be prepared to provide documents again (and quickly). The 2nd lender should be someone that underwrites and closes loans in their own, someone that can take the file down the hall to underwriting for a discussion. Should the 2nd lender determine they can approve the loan, you need to withdraw from the first lender before they record a denial in your electronic VA file. (Stay away from the large lenders).

Don't wait. Call now.
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Old 07-28-2014, 11:18 AM
 
10 posts, read 43,775 times
Reputation: 15
Update:

I called our realtor Friday after 5PM on my way home from work to ask what we need to do regarding an extension if it came to that. I have a friend who is a branch manager at a local bank and she said that their loan guy there said he could help but it would take him AT LEAST 3 weeks and of course he couldn't make any promises. The LO at this second bank said that the bank we are working with has pretty long turnaround times because they partner with a 2nd lender...which wasn't made very clear to me by my LO! I was COMPLETELY FREAKING OUT...and then....

Our realtor sent a pretty adamant e-mail to our LO to urge him to stay in close communication with everyone regarding the status of approval and appraisal....and like magic about 15 minutes later, I got an e-mail from LO saying that Appraisal and loan approval came through!

Appraisal value was fine but subject to repair: sanding and painting peeling stain/paint on the steps of the rear deck of the new home, which made no sense to me because the home was built in 2003 and wouldn't have lead-based paint issues...but instead of arguing it we just had it done yesterday, so LO was supposed to "rush" the appraiser's visit out to re-check. We took photos before/during/after the repairs with the hopes that they would satisfy the appraiser, but apparently she still wants to check it out in person.

Received a few conditions on our end that were easy to fulfill - couple of LOE's and a copy of my full divorce decree (from 15 years ago) to explain 3 last names on my credit report and prove I don't own or have any interest in any joint property from that marriage - we never owned anything together so easy enough. Plus the signed appraisal acknowledgement and a page of the loan app that I missed putting an initial on. I've already turned our documents in today, and now just waiting on appraiser to come back out and verify the repairs so that it can be sent to u/w to clear conditions.

Still hoping for closing on Thursday! Fingers crossed.

Last edited by jbrv; 07-28-2014 at 11:54 AM..
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