topic Re: May need to find a new lender....advice needed in Mortgage Loans

May need to find a new lender....advice needed

vabound — Thu, 22 Nov 2012 01:39:46 GMT

We have been under contract for about three weeks. Loan docs were signed 2 weeks ago and mortgage commitment was supposed to be in by friday. I got a call a week after we signed the loan docs because the LO needed some tax and employment info...then we heard nothing. My husband called last thursday and was told that all was going well and the file was at the processor. Then on monday he called again and the LO told him that they were having issues with my credit. What issues???? He had no idea. Our realtor called yesterday and asked if the LO had concerns and his response was "no" SO today we have no mortgage comittment and my husband called the LO again. This time he says that he really didn't want to discuss it with our realtor and that there is some issue with my payment history so the file wont go through automated underwriting. I have a 90 day late from February which was on the report when he pre-approved us. So we sign an addendum giving us until Nov. 29th to get our comittment and LO says to give him until next friday to try to make this work. I told my husband that I know it we wnet through manual underwriting, I could probably write a LOE (we are going for a VA loan) but we are just not convinced that our LO really knows what he is doing at this point. We called our realtors contact at WF and he said contact him next friday if we have no progress. He explained that if we don't pass the automated underwriting we will automatically go to manual. This is so frustrating because our credit reports haven't changed so this is something our LO should have been aware of before pre-approving us. We have already invested so much into this house.......Trying to stay positive.

Re: May need to find a new lender....advice needed

vabound — Thu, 22 Nov 2012 01:43:02 GMT

also our midscores are 639 (me) and 648 (him) No collections, some old charge offs, one paid judgement and some revolving credit (all paid on time other than the 90 day late in feb). I have student loans but they are deferred until 2017 and other than that we have absolutely no debt. Not much savings but a decent 401k.

Re: May need to find a new lender....advice needed

Chadsnana — Thu, 22 Nov 2012 02:46:58 GMT

Just hang in there. It will not be any quicker if you go to another lender. We just closed on doing refis on 4 properties. Three just closed after 65 days!!!! Still waiting on number 4. We have excellent credit, good income, and stable employment. It was delay after delay after delay. Apparently, you are told everything is fine and you get a date and you think you are good to go....Wrong! All of these companies have quality control checks now and underwriters are being fined so nothing is happening fast. Just be patient and wait it out. Your realtor and loan officer really have no say as to when things get done. Credit issues are not the only issues. For us, the appraiser did not check a box stating that the condos were not built in phases. Really, 30+ year old buildings. We lost two weeks waiting for the appraiser to check the box and resubmit. Don't worry. Just wait. Most likely they would have shut you down completely if it was not going to happen.

Re: May need to find a new lender....advice needed

Chadsnana — Thu, 22 Nov 2012 02:54:14 GMT

double post

Re: May need to find a new lender....advice needed

beb86 — Thu, 22 Nov 2012 06:15:38 GMT

I would be on the phone everyday giving them whatever info needed, I would assume if it doesnt pass auto UW the would just send it to manual UW right?

Re: May need to find a new lender....advice needed

vabound — Thu, 22 Nov 2012 17:57:54 GMT

beb86 wrote:
I would be on the phone everyday giving them whatever info needed, I would assume if it doesnt pass auto UW the would just send it to manual UW right?

I absolutely would give him my right arm if needed but he hasnt asked for anything. Either the bank he iSworking with onLy does automated uw or he doesn't know what he is doing. He asked us to give him one more week to make it happen.

Re: May need to find a new lender....advice needed

jasimae — Sat, 24 Nov 2012 15:44:10 GMT

I am keeping my fingers crossed for you. I am sure that your LOE for the late will suffice. Remember, the loan officers are not the underwriters. They get the first look at your file because they put it together and in their view it's golden. The underwriters have the final say on everything. They have the ultimate word on approving you. I have no lates, however, I have one charge off on my report (it's been long paid--like 2 years ago--and has a zero balance) and two satisfied judgments which are reporting as satisfied. Although my loan officer pre-approved me because she feels my profile is strong, an underwriter might feel differently. You just never know.

Re: May need to find a new lender....advice needed

vabound — Sun, 25 Nov 2012 03:48:33 GMT

After combing through the tri-merge report my LO pulled on 10/1 I realised that there are two paid collections and 1 unpaid collection on there that have since been removed. I am starting to think that it may be beneficial to have him pull my most recent credit report. All three collections accts were reporting on experian (which was my lowest score) there is no way to find out what my ex fico is except to have him pull again. He did do a second pull on 11/01 so this pull would be within 30 days of that one. A new report would show no collections and I wonder if my ex would be higher than eq...which would then make it my mid score. I just don't want to take a point hit from another credit pull.

Re: May need to find a new lender....advice needed

jasimae — Sun, 25 Nov 2012 05:29:08 GMT

If it's worth it to have him pull again to show no collections, I think id do that. And like you said...it is within 30 days so the point hit might not even happpen. The best case scenario for you would be that your scores have increased but the worst case factor would be that they dropped for whatever reason.

Re: May need to find a new lender....advice needed

vabound — Mon, 26 Nov 2012 14:33:25 GMT

I called this morning and told him to pull my credit again and see where my scores are. He said he would but I wish he was more forthcoming with information. That is what worries me....he doesn't seem to know what the actual issue is. he didn't say whether or not the collections accts would make any difference. Shouldn't he at least be able to tell me what the exact issue is?

Re: May need to find a new lender....advice needed

vabound — Tue, 27 Nov 2012 01:17:22 GMT

Ok now I am so frustrated and very discouraged. I told my LO today that an updated credit report would show that the only three collection accts i had are deleted. I knew that my lower score would go up and my mid score had not changed but maybe with the collections accts gone we could clear automated uw. I call him again at 5pm and he had just pulled the report and was sending it to me. He said that it was bad and that our scores had dropped. This was totally incorrect!!! My husbands score increased from the last credit pull and so did my lower score. He also said that we had updated information on old bad debt....also incorrect!!!! I pointed out to him that all of the info on this new report is the same info that was on the report he used to pre-approve us. THen he tells me that the processor told him that i need to wait until february because I have a late payment from last february. We have been waiting on him for THREE WEEKS and this is the first time he has mentioned this. I told him I could easily write a LOE for that one late credit card payment and he said they would keep working on it. uuuuugh

meanwhile my husband was referred by a family member to a mortgage broker who only does VA loans. He said for VA he can do the loan with a 620 which we are well above and if he pre-approves us the loan is going to go through. More importantly he was very upfront about the process and my husband found him to be much more informative than our current LO.

what a mess.......I am still praying that we can celebrate CHristmas in our new home.

Re: May need to find a new lender....advice needed

AJC1987 — Tue, 27 Nov 2012 03:58:41 GMT

It definitely sounds like it's time to go with the new guy....

If you don't like the LO it makes the process that much more difficult!!!

Good luck to you!!

Re: May need to find a new lender....advice needed

jasimae — Tue, 27 Nov 2012 04:18:03 GMT

I am so sorry to hear that your loan officer is giving you the run around. Did he send you your reports? do they differ in any way? If you are not comfortable then maybe its time to find someone else. I know that's heartbreaking to feel like your starting the process all over again and you were so close. You will know how to prceed when you have the reports in hand and can get a handle on everything. Maybe they just need a LOE. Can he take your file to a supervisor. I am so rooting for you. Please stay positive. My thoughts are with you.

Re: May need to find a new lender....advice needed

jnkp2001 — Tue, 27 Nov 2012 04:35:17 GMT

vabound wrote:
Ok now I am so frustrated and very discouraged. I told my LO today that an updated credit report would show that the only three collection accts i had are deleted. I knew that my lower score would go up and my mid score had not changed but maybe with the collections accts gone we could clear automated uw. I call him again at 5pm and he had just pulled the report and was sending it to me. He said that it was bad and that our scores had dropped. This was totally incorrect!!! My husbands score increased from the last credit pull and so did my lower score. He also said that we had updated information on old bad debt....also incorrect!!!! I pointed out to him that all of the info on this new report is the same info that was on the report he used to pre-approve us. THen he tells me that the processor told him that i need to wait until february because I have a late payment from last february. We have been waiting on him for THREE WEEKS and this is the first time he has mentioned this. I told him I could easily write a LOE for that one late credit card payment and he said they would keep working on it. uuuuugh
meanwhile my husband was referred by a family member to a mortgage broker who only does VA loans. He said for VA he can do the loan with a 620 which we are well above and if he pre-approves us the loan is going to go through. More importantly he was very upfront about the process and my husband found him to be much more informative than our current LO.
what a mess.......I am still praying that we can celebrate CHristmas in our new home.

I've never heard of a pre-approval being a guaranteed approval before. When you find out, can you share it?

sorry, forgot to say please:smileyembarrassed::smileyhappy:

Re: May need to find a new lender....advice needed

vabound — Tue, 27 Nov 2012 04:48:37 GMT

jnkp2001 wrote:
vabound wrote:
Ok now I am so frustrated and very discouraged. I told my LO today that an updated credit report would show that the only three collection accts i had are deleted. I knew that my lower score would go up and my mid score had not changed but maybe with the collections accts gone we could clear automated uw. I call him again at 5pm and he had just pulled the report and was sending it to me. He said that it was bad and that our scores had dropped. This was totally incorrect!!! My husbands score increased from the last credit pull and so did my lower score. He also said that we had updated information on old bad debt....also incorrect!!!! I pointed out to him that all of the info on this new report is the same info that was on the report he used to pre-approve us. THen he tells me that the processor told him that i need to wait until february because I have a late payment from last february. We have been waiting on him for THREE WEEKS and this is the first time he has mentioned this. I told him I could easily write a LOE for that one late credit card payment and he said they would keep working on it. uuuuugh
meanwhile my husband was referred by a family member to a mortgage broker who only does VA loans. He said for VA he can do the loan with a 620 which we are well above and if he pre-approves us the loan is going to go through. More importantly he was very upfront about the process and my husband found him to be much more informative than our current LO.
what a mess.......I am still praying that we can celebrate CHristmas in our new home.
I've never heard of a pre-approval being a guaranteed approval before. When you find out, can you share it?

sorry, forgot to say please:smileyembarrassed::smileyhappy:

I think he is just confident in his work.....lol. I am sure he has run into issues a time or two.

Re: May need to find a new lender....advice needed

vabound — Tue, 27 Nov 2012 04:52:55 GMT

jasimae wrote:
I am so sorry to hear that your loan officer is giving you the run around. Did he send you your reports? do they differ in any way? If you are not comfortable then maybe its time to find someone else. I know that's heartbreaking to feel like your starting the process all over again and you were so close. You will know how to prceed when you have the reports in hand and can get a handle on everything. Maybe they just need a LOE. Can he take your file to a supervisor. I am so rooting for you. Please stay positive. My thoughts are with you.

I have all of the reports he pulled and I have combed through each one. The scores differ a little but the info is all the same except for the fact that the most recent one has 4 less derrogotary accounts....which is actually better. I agree with including a LOE but this guy is only trying automated uw.

Re: May need to find a new lender....advice needed

vabound — Wed, 28 Nov 2012 02:26:35 GMT

The new LO called this morning and stayed on the phone with us for an hour going through each line item on our credit reports. Turms out he wasn't really concerned about mine because my score is 637 (he can do it at 620) and all of my old bad debt is at a zero balance. My husband's score is 641 however he has a charge off of $4k for a car that he cosigned for when he was previously married. His ex-wife kept the car after the divorce, crashed it and then bought a new one with the insurance check, neglecting to pay off the old one. My husband has not wanted to pay this as it is her debt but in actuality he knows he is responsible as well. The LO told us to keep in the back of our minds that we MAY have to pay this or settle/set up payment arrangements, but we will cross that bridge when we get to it. Other than that he felt confident enough with our DTI and income to proceed. We did the initial application over the phone and then he emailed us a list of docs to send him including W2's, tax returns, bank statements and LOE's for bad debt and my employment history. I feel so much more confident that this is someone who will do his best to get this done and will hold our hands through the process. He even had a conference call with our realtor and the sellers agent and told them he is shooting for getting this done before the new year (we were supposed to close Dec 7th). It felt really good to speak with someone who understands credit issues and gave us a chance to explain certain things. He said he would put us through automated uw and if it comes back as "reserve" then he will send it to manual with all of our docs and LOE's. We should know something in a few days!!!!

Re: May need to find a new lender....advice needed

jasimae — Wed, 28 Nov 2012 04:09:33 GMT

That is truly great news. This loan officer really sounds like he's with it and really trying to get you guys approved. Sometimes they forget that not everyone has perfect credit, and some folks just need to be given a chance to prove themselves. I have a really good feeling that you will close soon. IMO, it doesn't matter if you're approved via automated or manual, so long as you are approved. The end game is to get the house...no matter which road you take. Things sometimes happen beyond our control. The main thing is that you're on top of it now. I am so sending you positive vibes! Best of luck.

Re: May need to find a new lender....advice needed

vabound — Wed, 28 Nov 2012 04:22:46 GMT

jasimae wrote:
That is truly great news. This loan officer really sounds like he's with it and really trying to get you guys approved. Sometimes they forget that not everyone has perfect credit, and some folks just need to be given a chance to prove themselves. I have a really good feeling that you will close soon. IMO, it doesn't matter if you're approved via automated or manual, so long as you are approved. The end game is to get the house...no matter which road you take. Things sometimes happen beyond our control. The main thing is that you're on top of it now. I am so sending you positive vibes! Best of luck.

thanks so much!

Re: May need to find a new lender....advice needed

vabound — Sat, 01 Dec 2012 01:45:20 GMT

Bad news and not so bad news.....due to the large amount of deductions I claimed on my 2011 taxes, my income cannot be used. Using only my husbands income, we qualify for $135k which means we would need a downpayment/gift of $50k to afford this house using the va loan or get a co signer, put 3.5% down and use FHA. Either way I won't be on the loan.....my mother has agreed to co sign so that's good but I am feeling a little wired about not being on the loan. My husband suggests that we use the va to refi and ad me as a coborrower after I file my 2012 taxes (with very little deductions).......opinions?????