U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 08-06-2012, 04:50 PM
 
Location: New England
82 posts, read 388,531 times
Reputation: 47

Advertisements

Hi Everyone,

I have posted before but not frequently and I could use some advice so I am posting to every forum that I frequent. I am so confused.

I am trying to get approved for a mortgage, my landlord is wanting to sell my current rental and I don't want to move too much since I have two young ones. Any way I had to short sell my previous home because of my divorce, the short sale will be 2 years old this November. My middle credit score as of today is 710 besides a 60 day late prior to the short sale my credit is perfect. I have been calling around to see who if anyone will give me a mortgage and every broker and bank I have spoken to have told me I need to wait 3 years from the short sale except for one. I have had contact for the last couple of months with a LO at a mortgage company that is through a local CU, he knows of my short sale. He recommended that I go through their preapproval online today and see what happens so I did and I was preapproved for the loan amount I was asking with 10% downpayment, 30 years at 3.75%. Is this too good to be true? I asked the LO what this really means and he said I can start looking for a house. I am excited but cautious. I don't want to get into a contract on a home and then during the UW be denied. Thoughts? Again he's aware of my short sale and this is a reputal company locally based.

Thanks!
Rate this post positively Reply With Quote Quick reply to this message

 
Old 08-06-2012, 05:25 PM
 
28,461 posts, read 76,392,388 times
Reputation: 18546
Default Portfolio loan?

Some Credit Unions do hold their own loans, so instead of using FHA guidelines they make decisions about the credit history of borrowers without regard to short sales. IF that is the case (and I would make triply sure that is what is going on here...) then probably move ahead with this lender.

Of course that is a HUGE "IF" and of course you need to have ALL THE REST OF THE REQUIREMENTS nailed, including that 10% down payment...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-06-2012, 05:36 PM
 
Location: New England
82 posts, read 388,531 times
Reputation: 47
Thanks for your reply! The mortgage isn't actually held through the CU, the approval is through a mortgage company that works with the CU. I did ask the LO if I was really pre-approved and he said yes and go ahead and start looking for a home. I hope I'm not imagining this and my heart is broken in a couple of weeks. I definitely will have the 10% downpayment so now worries there.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-06-2012, 10:45 PM
 
Location: MID ATLANTIC
8,222 posts, read 20,438,175 times
Reputation: 9505
Fannie Mae will allow 10% after 2 years with extraneous/catastrophic circumstances. Unfortunately, divorce does not fit that definition. Under normal circumstances, Fannie will do 10% down after 4 years on a short sale. FHA is 3 years from date of the HUD, provided it wasn't an FHA loan with an FHA claim, then it's 3 years from the date the claim was paid.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-27-2012, 02:31 AM
 
33 posts, read 179,765 times
Reputation: 36
I'd get their closing fees, other fees, rate etc, a Good Faith and all other required disclosures in writing upfront before doing anything. Without that you have nothing. It's just being a smart consumer.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-29-2012, 02:34 PM
 
Location: West Los Angeles, CA
14 posts, read 24,125 times
Reputation: 16
Hi brightyellowhaha. I'm not sure how far along you are in your purchase, but I have found that in real estate, as the cliche goes, if it sounds too good to be true, it usually is. I had a client with a foreclosure because of a divorce and every lender we spoke to said it was a 3 year period before she could get a loan, EXCEPT one. He said that because she tried all she could to keep the home from foreclosing (depleted her saving, pulled from her 401k, etc), he thought it would be looked at as an extenuating circumstance and she could get a loan. He said he checked with upper management, etc, and they said the letter she wrote was good and they didn't see an issue. Needless to say, strung her along until the very end when she had spent all this money on inspections and had to remove contingencies and said that she couldn't be approved. See if they can have their loan processor check with the UW to make sure before you go down that path. What a LO thinks as extenuating circumstances may not qualify as one according to the guidelines.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 08-31-2012, 07:18 AM
 
Location: New England
82 posts, read 388,531 times
Reputation: 47
Hi thank you for the heads up! I learned about 2 weeks ago I can't get the loan with 10% but I can with 20%. My LO spoke with the Sr. UW who will be writing the loan. With the 20% down I won't need to go through PMI approval. I am currently under contract on a home and have a mortgage commitment date of 10/15. I feel confident it will go through. My personal local bank said they would also be able to provide me with a portfolio loan with 20% so they are my back-up if things change with the CU.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top