topic Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!! in Mortgage Loans

OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

mst2009 — Mon, 11 Apr 2011 20:36:13 GMT

Ok, now the work begins!!! Still removing "consumer disputes" and keeping a close eye on ALL my bills, making ALL payments on time!!! Any other advice anyone is willing to share??? Oh I guess I should be looking as some property too....LOL!!! I AM SO SCARED!!! But I have an AWESOME LO....

Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

trying2rebuild — Tue, 12 Apr 2011 20:38:41 GMT

Yay for you!!! Have a wonderful time house shopping!

Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

mst2009 — Tue, 12 Apr 2011 22:06:07 GMT

YEAH!!!!!! LOL!!! I have just found one and I am making an offer TOMORROW!!!! LOL!!! I saw this house a year ago, it went offf the market twice and hit the market again March 23rd...there are two other offers it is bank owned but the bank apparently isn't too impress with the previous offers...so my offer will knock their socks off!!!! Thanks so much!!!

Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

mauve — Wed, 13 Apr 2011 13:20:29 GMT

I'd be conservative - I've had the nightmare of having to re-negotiate price with Freddie Mac because my appraisal came in too low for my financing to work. I don't know if your house is one that needs work, but mine is (missing kitchen and bathrooms, garage needs structural repairs, etc). Freddie Mac apparently doesn't quite get that the after-improved value is the one you have to compare to the appraisal price, so they didn't even understand the problem when it occurred. I probably could have gotten the house despite the other offers if I had offered lower than I did, too.

Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

mst2009 — Wed, 13 Apr 2011 14:41:58 GMT

I have been considering that! Considering the size of the home and the amount of property that is included, the price is really low, It needs work but every house we have seen needs work, I don't believe there is any thing as major as foundation or structure problems (but you won't know until inspection) but I do know it will need a new or repaired septic. The county offers help for individuals within certain income levels with repair or replacement septic issues, they also offer other help with repairs to homes as well...I see my agent today and we will discuss it even more...sorry to hear how hard thing have been for you, are you looking for another property?? I was hoping this house was Freddie Mac..they offer great financing and the homepath program for repairs and redecorating.

Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

mauve — Wed, 13 Apr 2011 15:43:50 GMT

Everything is working out - I'm hoping to close by the end of April. My house appraised for $28k below the loan amount I was intending on taking out and about $60k below what I expected it to. We fought the appraisal and got it up another $8k. Still had to ask for the price reduction. Just saying, the appraisal can surprise you so be conservative in your offer.

Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

mst2009 — Thu, 14 Apr 2011 00:40:15 GMT

Well I went in and it was really interesting when we spoke to the selling agent she was honest about the property....it needs 55k worth of repairs...now we know why it keeps going in and out of the market she also told my realtor that they are looking for 203k or cash payouts...this poor lady seems so exasperated over this house it has been on the market for over a year and I am sure she really wants to unload this house so do I get a 203k loan?? I have been doing some research but I will not be able to particiapte in the first time buyers program using a 203k, so I would have to use my funds that I was going to use for moving expenses and new appliances...I am not sure if I am going to stick with this house but I may have to find something else...hmmm...I know with the work on this house that needs to be done...the appraisal will be LOW....

Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

mauve — Fri, 15 Apr 2011 03:40:48 GMT

I responded to your other post about the 203k, but here's the thing, at least here: I got an FHA appraisal, which any FHA buyer will see for the next 4 months. It will come up with the as-improved price (assuming the improvements are things that will make the property equivalent / saleable). The lending limit will be the *LOWER* of the sales price plus the improvements (which will include fees / permits / a % contingency - up to 20%, probably at least 10% / etc) OR 110% of the as-improved value. So if you get a contract price of 90k and the appraisal comes in at 120k, you will be restricted by the LOWER amount: 120k +10% = 132k or 90k +55k+10% = 150.5k - so you'd have to come up with almost 18k IN ADDITION to your 3.5% down and closing costs.

Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

mst2009 — Fri, 15 Apr 2011 11:57:29 GMT

Wow where is the deal in that??? The house is on the market for 139K the selling reator says there is 50k in repairs!!! It is REO and they are not working with anyone with conventional or FHA loans...they only want FHA 203k or cash...this is why the other two offers are just sitting there on the banks desk...the house is huge with 30 acres of land, I really bslieve that the price is marked pretty close to appraisal but with the work that needs to be done adding 50k to the mortgage is also going to raise the downpayment and also the monthly payment. I have to raise an additional 4k before even getting pre approval with Wells Fargo....there are so many forclosures and short sales that need work!!! Bank owned homes are hard to get because they don't want to spend the money to do the work...it is tough!!!! I am keeping my options open and still looking....

Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

PhillyGuy215 — Fri, 15 Apr 2011 12:25:06 GMT

I wouldn't sweat the "Consumer Disputes"... I had a ton of them on my CRs when I did my mortgage. I was an FHA with scores in the 780-800 range. The underwriter didn't care about them or ask why I had a lot of tradelines in dispute status.

Above 640 is the first hurdle, then no recent late pays and no UNPAID collections is the next hurdle, and no recent collections paid or unpaid. Then the final one is the questions from the underwriter. Don't challenge whatever questions they bring up during underwriting, just supply all the documentation you can. When you answer their questions just be plain about the answers. At settlement they will print your answers out on a form that you will be signing.

BTW what I learned, you can NEVER supply enough documentation for a mortgage app. The more paper you supply them the happier they will be. I dumped about 2" of paper from a Quicken report in their lap when they asked about a dozen or so transactions, and why there were all these transfers whizzing around between accounts.

Edit: collecitons

Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

mauve — Fri, 15 Apr 2011 13:15:36 GMT

If the appraisal comes in low, you have to make up the difference or they have to lower the price to meet you. So if your appraisal sets your upper loan limit at 100k but sale price plus improvements is 120k, you will need to come up with 20k + $3500 + closing costs, or you will have to get them to reduce their sale price by 20k.

Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

mst2009 — Fri, 15 Apr 2011 13:19:22 GMT

I have no collections or anything like that...I had two lates over a year ago and only one tradine showed a dispute on the lender pull, my scores were in the 680's and 670's I use Quicken too!!! I didn't know if they would accept those forms or not...I have TONS of documentation!!! Thanks so much for the feedback...it is so strange going through this process...you feel so exposed to the world!!!! Your scores are incredible, that is why FHA didn't give you a tough time...not so sure it will be that way with me...

Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

mst2009 — Fri, 15 Apr 2011 16:15:46 GMT

OMG!!! Ok this is REALLY helpful!!! I don't want any surprises like that!!!!