Approved with Conditions Worries

Anonymous · ‎06-07-2015

I just got approved with conditions early last week and for the most part the conditions aren't too bad but I'm worried anyway because the process of buying a house has been anything but simple so far.

My Conditions are:
1 Have Homeowners Insurance before close - Done

2. Proof of Income - Done

3. Proof of Downpayment funds in account - Done

Basically and from what I have read on here I'm getting off real easy but I am so worried anyway.

One major worry is that although I have the Downpayment money in my account, it really close to the required amount, all of about $50 over it actually.

Another is that I have had to use a credit card for a few things too recently. Although my credit was just pulled all of about a week and a half before the approved with conditions and the amounts charged to the card don't really effect my credit score I'm worried anyway.

So am I getting off easy? Am I worrying too much? Please if you can help let me know, I swear I'm getting ulcers from this,

StartingOver10 · ‎06-07-2015

Looks like everything is in excellent shape for you! Congrats! You should see your CTC soon.

I know it is easy to say and hard to do, but relax. You are almost finished. Soon you will be coming on here and telling us all about your very smooth closing....

ezdriver · ‎06-08-2015

Pay someone to worry for you and start enjoying your great achievement! Congratulations.

joshall · ‎06-09-2015

We have a very similar situation. We got the full approval, and now are just waiting for the funds to become fully available just before we close on the house (new construction). Then, our car broke down two weeks ago and we spent some $2000 on a new engine We of course charged this to our credit card and will not be able to pay this off.

I do think that the underwriter will do a credit pull again just days before closing. Perhaps you can double check that with your LO. But as long as you stay in the same bracket (>760; 720-760 etc), you will be fine.

Having just enough cash (or $50 more) at closing is absolutely fine! They do not care whether you have extra as long as you have enough fund for closing. But you do need to have at least approx $200 because sometimes the final cash needed may differ from that on your GFE. Of course, you need to show that your have some other reserves, though.

Congrats by the way!

Anonymous · ‎06-09-2015

Yes, luckily the final cash needed will be lower then what I need to show and we have that amount more then covered.

I am worried about the credit re-pull though if it does happen. My middle credit score was a little worrisome and at least on this FICO score we have here I have taken a dip. We had to charge about $1500 to a card for some other unforeseen problems much like you. I believe we can pay it down but right now being so close I'm not sure if it will take in time. I'd go to my LO on it but to be honest I'm unsure what his reaction will be.

frugalQ · ‎06-10-2015

unless your qualifying credit score is set to expire before you close, the lender will not check your credit for score purposes. the biggest factor will be what the new cc min payment will have on your DTI. if you are good there, then you should be good to go. Now, it doesn't mean that the UW will not question the additional credit....they may or may not. if they do, it will proably be just a LOE.

congrats on your new home!!!

Anonymous · ‎06-10-2015

Sorry for still being super worried everyone, but to say the least I still am,

Credit score was the last one was just done on May 21st, and if I'm not mistaken they last for 30 days. My loan officer informed me that he would expect to hear something back on the clear to close sometime next week so I'm guessing my credit score will be less than 30 days old at that time and hopefully will not need to be checked again.

Of course I do need to mention that my loan officer is a mortgage broker, and dealing with the separate lending agency so I don't know if that works out the same or not.

Also, does anyone know if mortgage lenders need to recheck the balances for money down after documentation is submitted for it. Basically I submit the bank statement showing the balance that was equal to money down last week and I'm hoping they don't require me to do it again since I need to start paying for things out of that checking account, however I still expect to have more than enough to cover the final down payment money at the time closing since that will be less than the required down payment amount. Basically I submit the bank statement showing the balance that was equal to money down last week and I'm hoping they don't require me to do it again since I need to start paying for things out of that checking account, however I still expect to have more than enough to cover the final down payment money at the time closing since that will be less than the

Anonymous · ‎06-10-2015

@Anonymous wrote:
Sorry for still being super worried everyone, but to say the least I still am,

Credit score was the last one was just done on May 21st, and if I'm not mistaken they last for 30 days. My loan officer informed me that he would expect to hear something back on the clear to close sometime next week so I'm guessing my credit score will be less than 30 days old at that time and hopefully will not need to be checked again.

Of course I do need to mention that my loan officer is a mortgage broker, and dealing with the separate lending agency so I don't know if that works out the same or not.

Also, does anyone know if mortgage lenders need to recheck the balances for money down after documentation is submitted for it. Basically I submit the bank statement showing the balance that was equal to money down last week and I'm hoping they don't require me to do it again since I need to start paying for things out of that checking account, however I still expect to have more than enough to cover the final down payment money at the time closing since that will be less than the required down payment amount. Basically I submit the bank statement showing the balance that was equal to money down last week and I'm hoping they don't require me to do it again since I need to start paying for things out of that checking account, however I still expect to have more than enough to cover the final down payment money at the time closing since that will be less than the

In general, lenders will check your bank account balances at underwriting and leave them be, so you should be fine. However, a really common requirement is that when you bring your closing funds, they have to come from the account(s) you submitted and the checks/wires can't exceed the account balances that you documented. So let's say you had a $25000 account with Bank A and a $5000 account with Bank B, and you bring a $29000 check to Bank B. The lender will re-verify the balance in Bank A, and if you transferred funds from Bank B to Bank A, they will also re-verify Bank B. So it's possible you could get re-verified at closing, but not if you follow the lender's rules.

A lot of times the initial estimates will change by a few hundred bucks for whatever reason, sometimes they are spot on. A good broker can, at your request, go through the estimated figures with a fine tooth comb and have your title company send you a preliminary HUD. That way if some of the figures have changed since taking the app, they can be re-calculated and you can be in the know about what you have to bring.

Good luck!

Anonymous · ‎06-13-2015

First of all thank you everyone for the responses. Where it stands now is that we are waiting for the sellers attorney to get the title to the underwriters as one of the conditions. I guess we are expecting to hear back on it all by next week.

I am still super nervous though. I guess I should have mentioned before that this is an FHA loan, and earlier today I read that doing credit refreshes on FHA loans isn't a normal practice unless the credit report/score is possibly expired. Does anyone know if that's true and/or still common practice? Many of the articles I read where from 2012 and 2013.

StartingOver10 · ‎06-13-2015

@Anonymous wrote:
First of all thank you everyone for the responses. Where it stands now is that we are waiting for the sellers attorney to get the title to the underwriters as one of the conditions. I guess we are expecting to hear back on it all by next week.

I am still super nervous though. I guess I should have mentioned before that this is an FHA loan, and earlier today I read that doing credit refreshes on FHA loans isn't a normal practice unless the credit report/score is possibly expired. Does anyone know if that's true and/or still common practice? Many of the articles I read where from 2012 and 2013.

Hummm,. most of the time the lender checks your credit again just before closing. The info in red above hasn't been my experience and I work with a lot of FHA buyers, but I don't use brokers at all any more, just correspondent lenders that originate and fund their own mortgages (and then sell them).

The actual lender will have a quality control check you have to go through after you complete underwriting. Normally you don't go through U/W until you have a complete package - including title. Then u/w will come back with a few conditions and then when those conditions are satisfied, you go back in for the final CTC.

Your process could be different because you are using a broker. I don't know.