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Just checking that you weren't saying yours was 400 and hers 416.
No...we are pretty good with our finances.
I am working right now with a credit union...I haven't told my current lender yet (but then again they promised to call me 4 days ago and I still haven't heard a word from them)
It's just frustrating that we can put down 20%, pay full closing costs, have strong credit, been employed by the same company for years and even have our next work contract plus a letter from our boss stating we are and will continue to be employed by them - and we still couldn't get approved.
As one lender told me - "We do conventional loans for fisherman all the time - and they work 6 months, then are off for the other half of the year".
...so why can't banks approve our situation without current pay stubs?
Some banks are just stricter than others about underwriting. They probably don't have any leeway on the "must see recent pay stubs" rule. Maybe the credit union won't be selling the loan off and can be a little more lenient.
I would also definitely recommend that you shop around a lot more for your conventional loan before going to either of your other routes. Like in any field of work, some people are able to get things done that other people can't. Since you have a GREAT credit score, 20% down, etc., the only issue is your employment situation and if you have been doing this for the last 5 years straight, there is a pattern there. Are there people that you work with that have the same situation with the layoffs/rehire thing? If so, could you ask around where other people in the same situation got their mortgage from? Find a mortgage broker who can shop your loan around to a bunch of different lenders. I have a guy that I refer some of my buyers to who have various issues and he almost always seems to come up with something, its just a matter of knowing which of his lenders look which way at people's "packages" (income, credit score/report, down payment, etc.) and which lenders would be likely to give a decent deal to that customer's package.
How a loan is 'packaged' to a processor and underwriter are crucial. Just based on your stats, you should be pretty good to get conventional loan. Do you know if the loan officer you used was using an auto underwriter for automated approval?
I would ask your agent about any mortgage pros they use or go to a large lender like WF.
I have been VERY satisfied with the lender I used which was WF. The person working a loan makes all the difference in the world because they know what a UW will ask for beforehand, so that the package is clean and there are no missteps.
I have been VERY satisfied with the lender I used which was WF. The person working a loan makes all the difference in the world because they know what a UW will ask for beforehand, so that the package is clean and there are no missteps.
Well...I was using WF....but the person working the loan kind of dropped the ball and wasn't too familiar with the ways my loan would need to get approved based on my job.
...I actually got some great news, and my boss had an emergency, so I am heading back to work as a fill in...in 2 days. So now my real estate agent feels that's great, as I will be currently working when the loan closes...
WF would only offer me an FHA loan or investment, and my mother-in-law would have to co-sign, which I thought was nuts.
I have a new loan guy (with another company) who seems really on the ball, and he feels everything will go perfectly...we just ordered the appraisal, and everything is going to underwriting on Friday, so fingers crossed
I was offered 30-year fixed conventional at 4.00%
Is it worth floating the rate? Does anyone think it will dip back down in the next 5 or 6 days to around 3.85%? I may just lock it at 4.00% to be safe...
That sounds great! Interest rates are dictated in large part by 10 year treasuries. Not always, but since the meltdown, has been a consistent barometer. How does your loan officer feel about rates? Ask him if he is watching the treasuries and if its a good time to lock or he feels it might drop.
I personally dont think rates will go down. If they do it wont be a half a percent or anything like that.
Look at it like this; in 5 years, you will be GLAD you have 4% when there is a strong likelihood it will have gone to over maybe 6% or higher
Look at it like this; in 5 years, you will be GLAD you have 4% when there is a strong likelihood it will have gone to over maybe 6% or higher
Only if the higher rates are a result of a stronger economy and not just a result of a correction to normalcy after the intervention from the fed.
If our economy is at the same point it is now, but just higher rates, it would be better to buy at 6%. Home prices will go down to adjust to the higher rate, based on what buyers can afford per month. Therefore the total paid for the house will be lower, the down payment will go farther, your taxes could be lower, etc. If you buy now at 4% the last thing you want is for rates to shoot up, your selling price would have to go down to reflect that unless those higher rates are to suppress and overly hot economy where incomes are increasing.
Long story short - 1st time homebuyers, my wife and I are private contractors and work 4 months on and 2-3 months off on a rotating basis. We have a combined credit score of 816. We are closing on a house that is 209k.
The underwriters just denied our conventional loan tonight, where we were putting down 20% ($42k) because we could not provide 30 days of pay stubs due the the fact that we are on leave from work until the end of March. We added my father to the loan to see if that would help, but were still denied. We even had our employer write a letter to the bank stating that we are contracted to go back to work in 30 days, but that did no good.
So we were just advised that we have 2 options -
#1.) Purchase the home as an investment property. I really don't know much about this, except we would still put 20% down but our rate would go from 3.875 to 4.675. (was told around $75 extra a month)
#2.) Use an FHA loan. Again, we were always looking to go conventional, so I don't know much about this - I know we'd have to take out mortgage insurance for at least 5 years. But would it be better to have some extra cash on hand for now and go in at a lower down payment (5% or 10%)? I was also looking into grants for FHA loans, where I could attend classes and if I meet the criteria, they could pay up to 10k for closing costs or matching a down payment. (which could help offset the mortgage insurance)
....my head is just spinning and I'm reading as much as I can right now, but I need to make a decision soon on how to proceed.
Any thoughts or opinions would really help me out...thanks a lot for reading this!
If you pay cash for the entire amount you don't have to worry with being denied any financing. Makes life easier.
Only if the higher rates are a result of a stronger economy and not just a result of a correction to normalcy after the intervention from the fed.
If our economy is at the same point it is now, but just higher rates, it would be better to buy at 6%. Home prices will go down to adjust to the higher rate, based on what buyers can afford per month. Therefore the total paid for the house will be lower, the down payment will go farther, your taxes could be lower, etc. If you buy now at 4% the last thing you want is for rates to shoot up, your selling price would have to go down to reflect that unless those higher rates are to suppress and overly hot economy where incomes are increasing.
I partially agree with you, if the OP was intending to sell in the next 5-10 years, the job market was the same and the local RE market where the OP is didnt see a wide variance between boom>bust prices. RE is totally local and demand is demand. I know that I can say that here in San Diego with a high degree of confidence.
Its all a moot point anyway, if the OP is ready to buy now, loves the house and it works for them. I was just saying that if they are ok now to buy a house at 4% when interest rates go up and they are happy, then good for them. The only advice I would give is to appeal your taxes annually if the prices do indeed drop that hard.
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No...we are pretty good with our finances.
