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About Me:
I don't, personally, know anyone who can help me with this, because they've never bought a home.
Mid-Score 667
Sal 85K
Debt to income - I think its 17% (monthly debt ~1500)
Time on this job - 3 months (exact same position, diff company)
Time in this job field - 8 years
Loan Request 137,500 (sale price 145K, Im getting a grant for down payment)
Seller paying 5k toward closing
Credit flaws
- Student loans, consolidated, all current
- ONE acct shows dispute comment "dispute resolved" (I called to have the dispute removed, I think i frustrated my LO by doing so, because she said "they could handle it", but i figured, I had a better shot of getting it removed, because it's MY credit report
- ONE Student loan account show "assigned to government" (But, that's old because it is current now, and in with my consolidation
- ONE Collection, I pay them monthly - it's like $225.00 now...
I'm scheduled to close on 9/26, but I want an answer early because I want to make the closing date and leave time in case they need something else. And, I'd like to feel comfortable enough to make plans to move, without feeling a huge load of disappointment. I have provided letters for EVERYTHING. I was pre-approved by these people.
My Questions:
What are my chances of being approved?
What happens if they say "No?" Can I get another lender? Will the seller have to wait for me or could they just put it back on the market?
ANY chance I can get earnest money back?
Why do they allow us to pick out a home, before getting the final approval? (just curious, seems evil...)
My Questions:
What are my chances of being approved?
What happens if they say "No?" Can I get another lender? Will the seller have to wait for me or could they just put it back on the market?
ANY chance I can get earnest money back?
Why do they allow us to pick out a home, before getting the final approval? (just curious, seems evil...)
As someone else mentioned you're probably good to go, especially since you're using FHA.
If your loan isn't approved, you can definitely try another lender. Downside is it will take longer since you're basically starting from scratch and most likely will miss your escrow date. In which case you will need to get an extension from the seller, which they may or may not grant you. If they do not grant you an extension, then basically you're out of luck if you miss escrow close date and your earnest money if you signed of on all the contingencies(which gets me to another point).
You have typically 17 days to get all your contingencies signed off(home inspection, termite inspection, loan, appraisal etc). If you have not signed off on your loan contingency and your loan was denied, you can back out of the deal and get your earnest deposit back. If you signed off on your loan contingency and then was denied, then it's a bit more tricky. At that point you'd need an extension from the seller, otherwise you're completely out of luck as far as I know.
And to your final question, that's my issue as well. I was in a situation where I was pre-approved by the lender and then was ultimately denied in underwriting after I had signed off on all the contingencies. It seems logical for the buyer to be completely approved before picking out a home, and not this crazy nerve wracking mess of a loan process, but that's the crazy world we live in.
Best of luck in your escrow, hopefully it will go smoothly.
You have typically 17 days to get all your contingencies signed off(home inspection, termite inspection, loan, appraisal etc). If you have not signed off on your loan contingency and your loan was denied, you can back out of the deal and get your earnest deposit back. If you signed off on your loan contingency and then was denied, then it's a bit more tricky. At that point you'd need an extension from the seller, otherwise you're completely out of luck as far as I know.
Yikes!
None of the above.
It would be best to look to the mortgage experts here, not someone who a few days ago was looking for help because their deal went bad.
A FTHB with a grant for a down payment on a FHA loan with a recent job change, a mediocre credit score at best, a couple credit hang ups=very simple?? Hate to be the naysayer here but I would have to disagree. Getting this file approved by the end of the month could become a problem. Not saying it will, but it certainly could.
Ceej, you are totally right in thinking that the lender should have fully run your file through credit underwriting before you put an offer in on a property.
Keep your fingers crossed. I hope it works out for you!
It would be best to look to the mortgage experts here, not someone who a few days ago was looking for help because their deal went bad.
So what about I wrote was incorrect? Seems like that's exactly what happened in my situation so what's wrong about it?
Not to mention hours of researching online about this subject. Sure I may not be an expert, but surely you're not simply dismissing what I wrote because I had a deal that went bad?
About Me:
I don't, personally, know anyone who can help me with this, because they've never bought a home.
Mid-Score 667
Sal 85K
Debt to income - I think its 17% (monthly debt ~1500)
Time on this job - 3 months (exact same position, diff company)
Time in this job field - 8 years
Loan Request 137,500 (sale price 145K, Im getting a grant for down payment)
Seller paying 5k toward closing
Credit flaws
- Student loans, consolidated, all current
- ONE acct shows dispute comment "dispute resolved" (I called to have the dispute removed, I think i frustrated my LO by doing so, because she said "they could handle it", but i figured, I had a better shot of getting it removed, because it's MY credit report
- ONE Student loan account show "assigned to government" (But, that's old because it is current now, and in with my consolidation
- ONE Collection, I pay them monthly - it's like $225.00 now...
I'm scheduled to close on 9/26, but I want an answer early because I want to make the closing date and leave time in case they need something else. And, I'd like to feel comfortable enough to make plans to move, without feeling a huge load of disappointment. I have provided letters for EVERYTHING. I was pre-approved by these people.
My Questions:
What are my chances of being approved?
What happens if they say "No?" Can I get another lender? Will the seller have to wait for me or could they just put it back on the market?
ANY chance I can get earnest money back?
Why do they allow us to pick out a home, before getting the final approval? (just curious, seems evil...)
The Grant programs tend to say that if you are approvable for the loan, you are approvable for the grant. Now, "approvable" means that your file received an "APPROVE/ELIGIBLE" from the Automated Underwriting system. Your mileage may vary, but if something kicks you down to a Manual Underwrite, the grant MAY be in jeopardy.
I have to think (hope) that your lender did, in fact, run what we call "DU" or "DO" to get said findings. You should ask if your pre-approval is based upon an AUS Approval. Getting the dispute off? I personally don't mind that you handled it, at least it's done.
You are getting in free. Between the grant and the seller contribution, the loan has a sub-prime feel to it. I'm hoping you have cash reserves ($$ in the bank after closing).
Most lenders do their jobs when the clock is about to run out. I happen to have recently joined a lender that fully underwrites pre-approvals (even without an address), and it has eliminated so much stress for me, buyers, and realtors involved. **This is not a solicitation, I only work in two states.
The Grant programs tend to say that if you are approvable for the loan, you are approvable for the grant. Now, "approvable" means that your file received an "APPROVE/ELIGIBLE" from the Automated Underwriting system. Your mileage may vary, but if something kicks you down to a Manual Underwrite, the grant MAY be in jeopardy.
I have to think (hope) that your lender did, in fact, run what we call "DU" or "DO" to get said findings. You should ask if your pre-approval is based upon an AUS Approval. Getting the dispute off? I personally don't mind that you handled it, at least it's done.
You are getting in free. Between the grant and the seller contribution, the loan has a sub-prime feel to it. I'm hoping you have cash reserves ($$ in the bank after closing).
Most lenders do their jobs when the clock is about to run out. I happen to have recently joined a lender that fully underwrites pre-approvals (even without an address), and it has eliminated so much stress for me, buyers, and realtors involved. **This is not a solicitation, I only work in two states.
I am not sure if it went through DU, DO or AU. I do know that, initially, in order to get "pre-approved" I had to submit a credit report, bank statements, pay stubs, and 3 years of tax returns. (even though after I found a house, they asked for all of that info over again.) ALSO, I went into underwriting last week, and they kicked-back citing "SUSPENDED", that's where I learned about all the flaws in my credit report and began fixing items, (i.e. my middle initial wasn't added to the contract) Should I still expect it to take long, once it's back in underwriting?
I truly appreciate everyone's honesty!
Last edited by CeejHome; 09-09-2014 at 11:01 AM..
Reason: Adding Comments
I'm in a hairy situation like this as well. My husband and I did a quick pre-approval through a credit union before we went out to look at homes. We just did not want to even put ourselves in that boat before we got pre-approved. It came back good to go and we set about looking. We fell in love with a new home in a perfect area just a few days later. The home builder has a deal running ($155,000), but everything has to be approved by the 29th of this month.
We began the process, and BOOM - come to realize we cannot use my commissions toward qualifying. I'm in sales, but I've only been in the job for 1 year. AND - as it turns out, you cannot use commissions toward qualifying until you've been at the job for two years. Yikes. So this means when we pre-approved, we were using my extra income, and now, that extra income is out of the running, which really is unfortunate because it pretty much halves my income.
On top of this our debt to income ratio was already in a tight spot. Yes, we pay our bills on time, we have no defaults on our credit history, BUT we have a good amount of debt between the two of us: two cars, motorcycle, student loan, and my husband has CC debt ~$10,000 (I have no CC debt having paid it all off about 3 months ago).
Only good points are that our debts are always paid, my husband's credit score is in the high 600s (good), and mine is 765 (excellent), we are using a VA Loan (0% down, we get all of our earnest money back regardless of what happens), my husband is active duty military (going on 9 years) and he just got a raise last month, and lucky for us - the loan officer is a friend who I am sure is going to go the extra mile for us. STILL - the sales guy at the home builder let me know our ratios were "tight" but he said "we are in good hands".
Together we make about $85k annually (just salaries, not counting my commissions), but I am still thinking it won't be enough to get us qualified. :-/
I am biting my nails over here and my stomach has been sour ever since we found out about my income situation. My husband has been angry and even said he was ready to "back out" of everything yesterday, but I told him we've come this far, we might as well finish it out - whatever that outcome will be.
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Did I ruin anything by doing this?)
