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Old 05-10-2011, 12:31 PM
 
Location: Garland Texas
1,538 posts, read 6,703,730 times
Reputation: 646

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My husband and I are just over a week away from closing on a home. We need about $5k for closing. I cashed out money in a retirement land from an old job to cover the closing, the problem is the money will not be here in time. Closing is the 18th and I need the money in the bank for about 5 days prior to closing. The check will not be mailed until the 13th and probably wont arrive until the 16th or 17th. I was going to take out a loan to cover the cost and then pay it back as soon as my check arrived, the problem is I can not get approved for a $5k loan as my credit score is floating around 635. We are at the point where my husband may take out a loan in his name, how bad would this be. I am desperate.
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Old 05-10-2011, 12:46 PM
 
74 posts, read 162,039 times
Reputation: 33
Well, When I purchased my home during the process, I took out a loan and also bought a new car. BUT, the loan officer at the bank told me that they wasn't going to check my credit again, so I took advantage of that. But good luck to you.
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Old 05-10-2011, 01:05 PM
 
28,461 posts, read 76,209,993 times
Reputation: 18535
MaryS80 (and any one else in similar situation):

DO NOT DO THIS! It VERY LIKELY WILL AT LEAST DELAY YOUR CLOSING IF NOT KILL YOUR DEAL OUT RIGHT! Lenders are VERY MUCH MORE strict about anyone getting new loans between deal acceptance and closing.

AT THE VERY LEAST contact your LENDER ASAP. Explain that you have had an unexpected problem come up, and you want to let them know that your funds are tied up. They may ask that closing be delayed -- off course the seller will need to agree to this as well so YOUR AGENT should make appropriate contact.

Honestly it would a TERRIBLE IDEA for anyone EVEN WITH STELLAR CREDIT SCORE (which you DO NOT HAVE...) to take a new loan, have their spouse take a new loan or anything similar.
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Old 05-10-2011, 01:08 PM
 
Location: Illinois
718 posts, read 1,902,290 times
Reputation: 974
Amen...you can't buy furniture, cars, anything while your loan is in progress much less get a loan. Just ask for a closing extension until your dates work. Best you can do.
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Old 05-10-2011, 01:10 PM
 
Location: West Orange, NJ
12,545 posts, read 19,504,098 times
Reputation: 3712
yeah, i think chet is right. if those funds weren't in your documentation, eyebrows will be raised when the bank does the final review. is there any other option you have? maybe some items around your house that could sell for some extra cash? dunno....
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Old 05-10-2011, 04:57 PM
 
Location: Columbus, Ohio
1,413 posts, read 4,105,106 times
Reputation: 1426
Chet is right. They will most likely pull your credit before closing. Banks do not want to loan money to someone who has to take a loan to pay off the closing.
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Old 05-10-2011, 05:14 PM
 
3,646 posts, read 10,129,329 times
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We are also in Texas. Our realtor was very clear on this point - and he was right (said he'd had a buyer lose his financing just a couple weeks prior over $10k worth of new furniture, bought the night before closing)!

Our closing was delayed (most are) - and they ended up pulling our credit TWICE in the last 15 days before closing (twice more before that!), the final one being just 24 hours before we actually closed.

Beg, delay, steal - but don't borrow until AFTER you close!
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Old 05-10-2011, 05:55 PM
 
Location: Garland Texas
1,538 posts, read 6,703,730 times
Reputation: 646
Thank you for the input. we already filed an extension once because they house appraised for less than what we offered which led to more delays. Our mortgage agent recommended to extend the contract a month, but the realtor only extended it for two weeks. The money will be here the day before closing which puts things in the nitty gritty.

Did chat with my agent and loan officer they are trying to work something out so the money does not have to sit in my account for X number of days. The seller, our agent, and loan officer have been wonderful and helpful.

I am so ready for a house I have been in apartment for 9 years now. It's a modest house (only $80k) but thats all I need.
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Old 05-10-2011, 08:25 PM
 
Location: MMU->ABE->ATL->ASH
9,226 posts, read 18,538,949 times
Reputation: 10190
I dont think you can aford this house. You need 5K from your retirement account to pay for it. What happend when the water heater goes, or you have major problem due to a storm and the roof need to be replaced . You are 1 step from losing the house. BTW; where is you 6-9 month emergency fund?
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Old 05-10-2011, 08:46 PM
 
16,304 posts, read 14,338,283 times
Reputation: 9839
Quote:
Originally Posted by flyonpa View Post
I dont think you can aford this house. You need 5K from your retirement account to pay for it. What happend when the water heater goes, or you have major problem due to a storm and the roof need to be replaced . You are 1 step from losing the house. BTW; where is you 6-9 month emergency fund?
Dead on Correct !

You are cash poor. You are desperate to close. What happens if something breaks, one of you gets ill, one of you loses your job ?

This reminds me of that show HH ( entertainment forum ) where alot of the buyers can NOT afford their house or if they get IN the house, they have nothing to work with to fix it up .
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