Applied for mortgage....hoping to get an approval!

[LB2484]

This mortgage process is nerve racking!!!!

I applied with a mortgage group yesterday and the LO sent me an email that the automated underwriter system kicked out my credit profile. 

When I asked for the reasons this was what she gave me:

• Utilization of revolving credit
• percentage of accounts with delinquencies 
• Recency of non mortgage delinquencies 
• Mortgage balances or no mortgage history

my question to the mortgage professionals.....are these reasons going to prevent us from an approval?

Credit scores from the mortgage pull is EQ 668, EX 686 ( with potential to increase +4 points) TU 698 ( with potential to increase +13points)

I should add that I have  a discover card 14k limit and a 3200 balance, Cap One 4500 limit with 1300 balance, Cap One/quicksilver 3000 limit with 1100 bal, BOA 2,000 limit with 5 balance, JC Penney 1300 limit with 0 balance, Lowes 1200 limit with 0 balance, care credit 2000 limit with 750 balance. All cards have been paid on time for last two years

I have a car loan 589 month that has been paid on time for three years. Another car loan that just paid off in full and was never late for four years, installment loan that is 389 month and has never been late for three years.

i have 2 collections that are paid in full from 2011 and late payment 6+ 30 day (no 60 or 90 days) from 2011 but paid off in full in 2012

 My income is 93k year been at same job 24 years and I have 80,000 towards down payment/ closing costs

any advice is appreciated.

[Anonymous]

" My income is 93k year been at same job 24 years and I have 80,000 towards down payment/ closing costs"

I'm by no means a pro, but this might be enough to tilt a shaky file over to the "it's a go" basket.

[Lemmus]

...you have 2 ccs with more than 30% utilization on them ...I'd PIF them, ask for immediate reporting, and then get a rapid rescore ...hth

[apeydee416]

What do you mean when you say "kicked out"? Was the lender saying it was an outright denial? Do they offer manual underwriting?

Previous poster offered the best solution, but if you want to keep moving forward I think you have some compensating factors with the amount you are able to invest.

[LB2484]

Yeah....... LO called today and I was approved for 300.000 at 4.125% 

she emailed me a Conditional prequalification letter to take to our builder. 

It is my understanding that this is the best you can get and that we went thru manual underwriters.

We meet with him Saturday and sign our contract!