Building a home and nervous the loan won’t go through.

[Anonymous]

We’re started the process in November and applied with the builder preferred lender before signing a contract. The lender told us we had some work to do (increase score, pay down debt) but we were preapproved. I was told last week our mid score is at 620 and it is still rising. We have paid down a good amount of debt but I’m nervous it won’t be enough. We will also be getting our downpayment from 401k and tax return. It’s been hard to save when we’re working on debt. Our lender has given us no indication that it won’t work but I am terrified it will fall through at the last minute. They should be pouring the slab next week so we have a good 3-4 months to go. Has anyone ever gotten to the end and it not worked out? I’ve heard that the lender will push harder to get the loan approved in a situation like this but no idea if that’s true. I just can’t help but worry!

[NC_Mtg_Loaner]

No, it always works out one way or the other.

Don't panic, just keep your nose to the grindstone and keep heeding the sage advice of your LO; keep paying bills on time and keep utilization ratios low if possible.

[JVille]

Sorry I’m not seeing this, you have work to do but you are “pre-approved” sorry this is double Speak.

Please tell me you aren’t dealing with Pulte, Famous for this double speak.

[Anonymous]

We were conditionally approved. Since there are several months between closing and build time we were told we needed to increase our score and pay down debt and we would be fine.

[Anonymous]

That’s encouraging! Thanks

[Anonymous]

OK guys, sorry to bring this up but I’m still freaking out. I’m just still looking for more input on success of used a builders preferred lender. We submitted everything required for underwriting over the weekend and I am on pins and needles waiting on some response. I keep reading that using a preferred lender will help getting a loan pushed through if there is an issue. Any one else with experience, input, anything!

[Anonymous]

Curious how’ it turned out? In similar situation almost with Pulte

[JVille]

Just closed a loan with Pulte! You need to really stay on top of them and reach out and push for answers. Expect to need to submit things multiple times (sadly common with most Big lending centers).
Your conditional approval is worthless if you need to raise scores and other conditions. Note: they WILL keep your money! Good luck

[MauiMan85297]

Pre-approval just means that you meet the criteria of a QM and they have asked for the documentation and if they match what you supplied you shouldn't worry too much about it falling apart at the last minute.  You should have a processor that's handling your paperwork-reach out to them and ask where everything stands, they should be very honest with you.  Don't panic, breathe.........