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Old 07-09-2015, 09:56 AM
 
4 posts, read 7,470 times
Reputation: 10

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Hello everyone!
Here we go, I am a first time home-buyer and using an FHA loan. On June 2nd I signed a contract for a home that I put an offer on showing the estimated closing date of June 30th. I have sent every single piece of paper amerifirst the company I am using asked for on June 12th we extended the close date to July 24th. My concern is can I be denied? Here is a little background I do not have much credit history as I just started getting approved for credit cards a yr ago. I have never been late on a payment. Loan person from amerifirst said we could use alternatives such as rent and utility bills. I have lived in my apt for 5 yrs now and have never been late, one of my utility bills I have had for 5 yrs with no late payments and my cable bill about 2 yrs with no late payments. I gross 3030.00 a month. Only debt I have is for 2 credit cards which are both in good standing making both of them together $70 a month. The house is 74K. The LO told me everything looks okay the only problem he could see is that I do not have much money in the bank. I have maybe a month and a half of reserves. I have the 3.5% down and the seller has agreed to pay closing cost. Also my loan has been in underwriting since July 1st how much longer before I know? I am getting pretty pressed with time.
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Old 07-09-2015, 12:17 PM
 
24 posts, read 39,252 times
Reputation: 21
First, welcome....

I'm not an mortgage expert, but can definitely relate to the anxiety. Hang in there - it is a roller coaster ride.
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Old 07-09-2015, 12:23 PM
 
Location: MID ATLANTIC
7,598 posts, read 17,623,584 times
Reputation: 8083
Wait a minute....your application with this purchase address on the application is dated June 2? Or was that your prequalification date? The details matter because by law, you must have a decision in 30 days of your application. Look at your copy of the loan application and see what the date is for the loan officer's signature.

You gave us everything but credit score - that's an important detail. Everything else points to an approval. BUT - other things are at play....how are your earnings paid out? Hourly? Does that number include bonus, commission etc? Did you give us all the detail is the real question? If yes, you should be just fine. Unfortunately, we get 1st time posters looking for definitive answers, then proceed to provide half the picture. And, its not until we've played 20 questions we have the complete picture. My gut tells me you are not one of those posters, but until I'm certain, I don't want to hear of lost deposit for moving trucks because we were wrong with an answer. (Example)

Signed,
Been Down this road
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Old 07-09-2015, 12:39 PM
 
4 posts, read 7,470 times
Reputation: 10
Thank you. Okay so I looked at the loan application which is actually date for 6/4/15 so I'm assuming I still should have had an answer by now. My credit score the last time I checked was 663. I get paid hourly and the $3030.00 is what I gross each month not including OT or anything. Which by the way I work lots of OT but I know I cannot include that as it is not always guaranteed. I was told by amerifirst they expected to receive the application back from UW yesterday or today but there would be things on there they would need to clean up. Something about they may ask for more paperwork. I'm 25 and I use to apply for cars, credit cards, etc when I was 18 but always got denied to having no credit. When I was pre-approved a few months ago I was shocked! I was told it was because of my rent history and because fha loans are a lot more lenient. I'm really praying this goes through.
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Old 07-09-2015, 08:45 PM
 
Location: MID ATLANTIC
7,598 posts, read 17,623,584 times
Reputation: 8083
I think you are fine. I'm concerned that Amerifirst has not met their required date. Look at that application again and verify the address of the proprty you are buying is on page 1, then type an email to your loan officer.

"Dear Loan Officer,
I will be so happy when this is all over, I can't begin to tell you how stressed I am. Of course, everyone is giving me advice I didn't ask for. My step sister/cousin/ sister's brother in law/whoever you make up (make it kind of on the peripheral, any closer they would be involved with the mortgage application), anyway, this person does mortgage audits and said a credit decision is required 30 days after loan application. Is that really the case? S/he wants me to call him or her on Monday with NMLS #s of the company and people involved. Where would I find those. (Be very blonde right about now).

Thanks, I know you are as frustrated as I am.
Thanks,
Melissa"

I'm betting 3 hours? Maybe 4? Or if no reaction, Google "CFPB mortgage complaints.". I do not know of a lender that does not take this 30 day decision requirement seriously.

Good luck.....and DM me if you suddenly need a cousin, lol.
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Old 07-16-2015, 09:19 AM
 
4 posts, read 7,470 times
Reputation: 10
Update: Okay so apparently last Friday 7/10/15 the LO received the conditions back from underwriting. The only thing underwriting wanted was for me to have $2600 in my checking account at closing. Here is what I do not get they said 2 months reserves it what they wanted to see which would be $1100 for the 2 months of reserves. Part of the $2600 would need to include $590 for the down-payment. My down-payment is a total of $2590. I put down $500 for earnest money and my mom "gifted" me $1500 so I would owe another $590. The $1500 that my mom gifted me is already in a cashiers check which is already made out to the title company. What I don't get is they say they want to months reserves and the other $590 for the down-payment, how does that equal $2600?! When I get paid tomorrow I will have a $2500 in the bank. We are scheduled to close on 7/23/15. LO said he might be able to get that $2600 dropped some but to maybe $2200. Someone doesn't know math somewhere.
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Old 07-16-2015, 08:18 PM
 
Location: MID ATLANTIC
7,598 posts, read 17,623,584 times
Reputation: 8083
There's no way we can figure out what they are telling you. Spell it out to your loan officer (And no, I don't want the loan, I don't even do FHA loans wherever you are.....but nothing is a greater motivator than someone else after their loan).

Dear LO:

Please clarify the asset situation for me - first, people are looking at me cross-eyed when I tell them I need reserves on an FHA loan. Remember that cousin? She's hopping up and down telling me to get the case number and appraisal assigned to her! (This is just awful when they keep telling me what to do!) That aside, and my trying to meet the UW requirements, I need to understand the math.

How much do I need total? (Please break it down for me: down payment, closing costs and reserves)

How much have you given me credit for?
And that includes Earnest money? How much in my bank account and as of what date? Does it include the gift? Are you counting the appraisal money?
When does the money have to be in my account?


How much more do I need in addition to the above?

Reserves are not required on FHA loans. You are giving the UW a warm and fuzzy, a bit beyond the requirement a. That's why she can "talk her down.". Give me a break. They're not being honest with you.
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Old 07-17-2015, 06:15 AM
 
4 posts, read 7,470 times
Reputation: 10
Quote:
Originally Posted by SmartMoney View Post
There's no way we can figure out what they are telling you. Spell it out to your loan officer (And no, I don't want the loan, I don't even do FHA loans wherever you are.....but nothing is a greater motivator than someone else after their loan).

Dear LO:

Please clarify the asset situation for me - first, people are looking at me cross-eyed when I tell them I need reserves on an FHA loan. Remember that cousin? She's hopping up and down telling me to get the case number and appraisal assigned to her! (This is just awful when they keep telling me what to do!) That aside, and my trying to meet the UW requirements, I need to understand the math.

How much do I need total? (Please break it down for me: down payment, closing costs and reserves)

How much have you given me credit for?
And that includes Earnest money? How much in my bank account and as of what date? Does it include the gift? Are you counting the appraisal money?
When does the money have to be in my account?


How much more do I need in addition to the above?

Reserves are not required on FHA loans. You are giving the UW a warm and fuzzy, a bit beyond the requirement a. That's why she can "talk her down.". Give me a break. They're not being honest with you.
Thank you so much! I am going to do that now. I already asked the LO and he just kept beating around the bush. I was the one do math for him and he was like "uhh uhh uhh, I'll have to do some numbers and call you back."
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Old 08-06-2015, 12:11 PM
 
23 posts, read 19,937 times
Reputation: 10
I ran into the same thing and came here panicking.

Our LO broker was horrible. Mysterious $2000 added to our down payment and closing costs and fees. Never could explain it. Went to UW without telling us with the entire wrong sales price and mortgage (off by over $60k) and kind of nasty on the phone and refused to ever meet us in person.

I was like, "nice knowin' ya."

Went out and got a new lender. 10x better.
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