What should I expect? Should I trust? (loan officer, interest rate, approval)

[GinRinBreeze]

It's long but has all the info.

We have never done anything like this so I am giving all the info I can. I am afraid we may get ripped off.

My wife and I are building our first home.

We own 16 acres. Value $50000 +/- $5000.
Combined income $165000-$170000 yearly
$14000-$15000 gross per month
on the job 8 and 5 years

The house we are going to build is $185000- $225000 depending on fixtures etc.

Northwest Houston area.
We are building on the land we own. Land paid off

revolving, installment and current home payment is $2000-$2500 monthly


OK, Over the last couple of years we decided to pay off our debt, but saw the interest rates going down so we halted paying over on our bills and talked to a lender and builder.

our disposalble net income is $3800 monthly and if we were on a budget could be $4500-$5000

*When the bank pulled our credit I had FICO 694, 658,618. Hers 630, 615, 612.

What we found was my wife would not always pay the small bills on time even though we had plenty of income. several 30 days and a couple of 60; completely paid off now.

*There was also a 30 day in February. Be cause my wife put the card on our Christmas savings account for auto pay instead of my account that we use to pay off large bills. of course when we found out we made the correction.

*Looking at the credit report the bank sent us for pre approval, I found a medical bill that went to collections and was charged off in 2006.

*This was an error and the company is sending us a letter and removing it from our credit. on the report it was called a derogatory public record or collection.

*When this is cleared how much will it help?
and how much time is needed before the 30 day late in February start to improve our credit?

*The banker says he can approve at 6.58 with current credit(before we found the error) and says that by time the house is finished and it is time to close the 30 day late should have plenty of time to age and not impact our credit as bad.

Should I trust his assumption and what can we expect based on this assumption?

*Also, at the time of the official application next week we will only have about $5000 cash in the bank because we have been using all extra money to pay off debt. That number will be about $30,000 when it is time to close.

Will that be enough and will our land help in this area?
What are my loan options?

How can I find other trustworthy loan officers?


Thanks, trying to give complete background.

JW

[Bette]

Yes, that should really improve the score. Get a copy of the letter yourself and this can be rescored. You can go online and get a copy of each report and dispute any info you feel is incorrect.

Also, if there are minor lates, call the creditors, explain you are a longtime customer and see if they will remove them. Some of your higher end department stores will do it (Neimans, Saks, Bloomingdales). Just a thought.

Your lender can always pull a new credit report once it is rescored. I am set up for rescoring if you need my help. I have a credit background and know how it works

[GinRinBreeze]

does the letter work? or does the lender have to pull the credit again. i am told every time they pull credit your score goes down and the credit will be reviewed again a month befor the house is complete.

how often can i pull my own credit w/out damage to my score.

what is "I am set up for rescoring"

[pghquest]

Originally Posted by GinRinBreeze

It's long but has all the info.

We have never done anything like this so I am giving all the info I can. I am afraid we may get ripped off.

My wife and I are building our first home.

We own 16 acres. Value $50000 +/- $5000.
Combined income $165000-$170000 yearly
$14000-$15000 gross per month
on the job 8 and 5 years

The house we are going to build is $185000- $225000 depending on fixtures etc.

Northwest Houston area.
We are building on the land we own. Land paid off

revolving, installment and current home payment is $2000-$2500 monthly


OK, Over the last couple of years we decided to pay off our debt, but saw the interest rates going down so we halted paying over on our bills and talked to a lender and builder.

our disposalble net income is $3800 monthly and if we were on a budget could be $4500-$5000

*When the bank pulled our credit I had FICO 694, 658,618. Hers 630, 615, 612.

What we found was my wife would not always pay the small bills on time even though we had plenty of income. several 30 days and a couple of 60; completely paid off now.

*There was also a 30 day in February. Be cause my wife put the card on our Christmas savings account for auto pay instead of my account that we use to pay off large bills. of course when we found out we made the correction.

*Looking at the credit report the bank sent us for pre approval, I found a medical bill that went to collections and was charged off in 2006.

*This was an error and the company is sending us a letter and removing it from our credit. on the report it was called a derogatory public record or collection.

*When this is cleared how much will it help?
and how much time is needed before the 30 day late in February start to improve our credit?

*The banker says he can approve at 6.58 with current credit(before we found the error) and says that by time the house is finished and it is time to close the 30 day late should have plenty of time to age and not impact our credit as bad.

Should I trust his assumption and what can we expect based on this assumption?

*Also, at the time of the official application next week we will only have about $5000 cash in the bank because we have been using all extra money to pay off debt. That number will be about $30,000 when it is time to close.

Will that be enough and will our land help in this area?
What are my loan options?

How can I find other trustworthy loan officers?


Thanks, trying to give complete background.

JW

Your credit score will not change enough between now and the time you close, even with the medical bill being removed. Also the 30 day lates will most likely not have enough time to be no longer an issue because one just happened 2 months ago.. It usually takes about 24 months before those items pass before your credit score stops really being affected by it.

As to if they will have to pull credit again, this will depend on how much time it will take you to close. Each pull does harm the credit report but you can pull as many as you want in a 30 day period for similar reasons (such as a mortgage) without it being harmed. Each report is good for a set period of time so your banker will be able to tell you when the report will expire and need repulled

[YSP]

It on only makes your score go down a few points but if your at 500 fico dont pull it if your trying to do a refi or something else trusting the LO well numbers dont lie get a copy of the hud one it will show you the fees when banks compete you win have 2 different mtg companys working on the loan at the same time they will see each others inquirey and know that they are competing with xyz company and cant afford to lose you business so they will hunt for the best deal for you always ask for a copy of the final approval in writeing so when you go to titel to sign there wont be a bait and switch

[chuck-a-muck]

I'm starting here on your 1st post -- the land you own can be your down payment with certain lenders on your 'new build'. I'll read through the rest of your posts. I am a loan officer in Arizona. I can write in all 50 states. I'm offering you my advice.

[chuck-a-muck]

You can pull your credit as often as you like. Proper three-credit-bureau pulls are made for the purpose of mortgage applications; they are often radically different than the public pulls individuals receive....I always recommend myFICO - FICO Credit Scores | Get a Free Credit Report Online for credit reports and credit scores...obvioulsy, there are free routes, too.

A tri-merged residential credit pull is usually made in two ways by your loan officer -- either through the lender or separately. If separately, the final lender will likely pull credit again; the lender reserved the right, and some loan officers avoid these if the applicant is 'on-the-fence' with his/her credit score.

A bank mortgage application will not likely have another credit pull; a broker application credit pull will not likely suffice today, and the lender will probably pull again...this was not always the case.

Portfolio lenders who do not sell your mortgage asset but hold it for the duration of the loan may not re-pull, as their guidelines may be looser than others.

Most importantly, your credit pull versus the loan officer's
pull will never be the same...yours will usually be lower.