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I was recently pre-approved (not just pre-qualified) for a mortgage to buy a brand new house. It's my first mortgage. I paid cash for my current home and recently sold it (still waiting to close). For my new house I'm planning on making a 60% downpayment on my new home once I close on the sale of my current home. I will be paying off 100% of my debt from the remainder of the money from the sale of my current home which consists of credit cards and an auto loan. I've only been late on a credit card payment once in the past 3 years. I've been employed at my current job for 8 years. Based on this how likely is it for a mortgage to be denied by underwriter after appraisal?
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I'll bite. If you're salary is $18,000 per year and you are planning on borrowing 200k for a 500k house I'd say it's likely you will be denied. See what I did there? You didn't give us enough information. Welcome to CD or not.
Something else to keep in mind in most cases mortgage companies won't let you pay off revolving debt to qualify for a mortgage. The mortgage company my want you to close the credit cards. There is more to your picture that needs to be considered, did they say why the underwriter denied your loan?
I was recently pre-approved (not just pre-qualified) for a mortgage to buy a brand new house. It's my first mortgage. I paid cash for my current home and recently sold it (still waiting to close). For my new house I'm planning on making a 60% downpayment on my new home once I close on the sale of my current home. I will be paying off 100% of my debt from the remainder of the money from the sale of my current home which consists of credit cards and an auto loan. I've only been late on a credit card payment once in the past 3 years. I've been employed at my current job for 8 years. Based on this how likely is it for a mortgage to be denied by underwriter after appraisal?
If all your numbers have been checked and your debt to income ratio qualifies you for the loan and you are able to provide all the documents that the underwriter asks for there is no reason to be denied. The appraisal can only hurt you if the home is valued at less than you want the loan for. A low appraisal can deny the loan/kill the deal. If the appraisal is good it won't affect the underwriting, in that aspect.
I'll bite. If you're salary is $18,000 per year and you are planning on borrowing 200k for a 500k house I'd say it's likely you will be denied. See what I did there? You didn't give us enough information. Welcome to CD or not.
Sorry. My annual taxable income is $33,000 gross. About $25,000 comes from W2 income, the rest from investment dividends. I'm applying for a $100,000 mortgage. The house is $267,900 and I'm paying $167,900 downpayment. I have a credit score of 724.
Something else to keep in mind in most cases mortgage companies won't let you pay off revolving debt to qualify for a mortgage. The mortgage company my want you to close the credit cards. There is more to your picture that needs to be considered, did they say why the underwriter denied your loan?
My loan wasn't denied. It's about to go to underwriting. It's my first time getting a mortgage. I've read all kinds of horror stories about people saying their LO told them they should be golden and then they get denied at the last minute not because they applied for new large amounts of credit or went on a spending spree, but because the underwriter didn't see things the same way as the LO did at the beginning.
My loan wasn't denied. It's about to go to underwriting. It's my first time getting a mortgage. I've read all kinds of horror stories about people saying their LO told them they should be golden and then they get denied at the last minute not because they applied for new large amounts of credit or went on a spending spree, but because the underwriter didn't see things the same way as the LO did at the beginning.
An underwriter can't just deny your loan for not seeing things the same way, they have to give you a valid reason why your loan is denied.
Sorry. My annual taxable income is $33,000 gross. About $25,000 comes from W2 income, the rest from investment dividends. I'm applying for a $100,000 mortgage. The house is $267,900 and I'm paying $167,900 downpayment. I have a credit score of 724.
Dividends income will very likely not be calculated similarly to your estimate, unless the numbers you quote came from your lender. How intensive was the pre-approval? Full tax returns? If the dividends income is downgraded you are pushing the front-end ratio (house payment/gross monthly income) quite a bit, as well as the total debt ratio.
If you got to the point of appraisal, that means you signed opening disclosures. What income numbers are on the application (1003, page 2, Section V)?
Ask your LO if those numbers are accurate. Also, how much are the property taxes on the house you are buying? Does it have a HOA? how much is that? How much is your Homeowners Insurance premium for the new house? Are you closing the accounts you are paying off?
Dividends income will very likely not be calculated similarly to your estimate. How intensive was the pre-approval? Full tax returns? If the dividends income is downgraded you are pushing the front-end ratio (house payment/gross monthly income) quite a bit.
I brought 1040's, W2's and 1099 investment tax forms for the last 2 years to the pre-approval. The income on the application is $2,206/month. The LO put down on the application that I would pay off all of my credit cards and my auto loan so once I move into my new house I would be debt free assuming the mortgage is approved. I would have the mortgage payment and utilities each month. That's it. The mortgage company recently contacted my LO and said they don't need any further documentation at this time. They just wanted to know the contact info for the escrow officer handling the sale of my current home. The same escrow officer is handling both transactions.
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