@Anonymous wrote:Hi everyone,
I'm half way the waiting walk of approval (I've been pre-approved, signed an agreement, and locked into a rate) and I was wondering if anyone could chime in on this - Ihave to furnish proof of approval by the 20th, so I only have a few days left to get this stuff in order...
I've had to take some small cash advances out over the last 2 months (Ranging between 100-400) - due to some unexpected business expenses and I wanted my balance to look good when they reviewed me. Now I find out they'll look into that and want letters of explanation.
Cash advances against what? A credit card? I can't imagine what other kind of cash advance you mean, so I'll assume it was against a CC.
If against a credit card, they won't (at least, they didn't with us) look at your actual credit card bills. They just looked at the balances and minimum payments (and payment, history, too, of course).
Also, my wife's name is on the bank account, but she's not a co-borrower (She doesn't have credit history) - will this be an issue too?
I wasn't the co-borrower, either, and our accounts were joint, too. Not problem-o. They will ask *why* she's not a co-borrower since your finances are co-mingled. But that's to make sure that you're not trying to defraud the system (like she has defaulted federal loans, recent foreclosure, etc).
They'll accept your word that she's not on the application simply because her credit is non-existent.
Does anyone know how much of a detriment to my overall approval this is?
Should be absolutely NONE. I honestly think you're stressing over something that doesn't need to be stressed about!
I'm far under their DTI guidelines with a mid score of 682 seeking USDA - Never been late on anything.
As long as your income supports the amount of home you want to buy, you sound super!!
Best of luck to you!
@Anonymous wrote:Sorry for not being specfic - they're not advances on credit cards.
My bank provides a 'line of credit' for their checking account customers, it's very much like a payday loan.
Essentially you withdraw from the line of credit and it has to be paid back with your next direct deposit.
I did a few rotations of this to keep my balance looking healthy until the reimbursement came. As of half a month ago it's all paid off.
Ah. Perhaps the *type* of credit's different (rather than a CC, it's an LoC), but it's still the same. It's just credit.
Just as I REALLY wouldn't see a HELoC on a home being used preventing refi-ing an existing mortgage, I can't see using a LoC preventing you from getting a mortgage.
Overdrafts would be a completely different matter. But this isn't one.
Bottom line: stop stressing and start looking.
@Anonymous wrote:I just got a call from my LO and she said I went through automated underwriting without any issues.
Does this mean I'm out of the woods yet or should I be more worried about the human who will review everything?
Well, honestly, you're not out of the woods until you've signed all the paperwork and have the keys in hand. THEN you're out of the woods (and in your new home).
Automated Underwriting (AU, as it's commonly called here) is a software application that LOs use to run your scenario to see if you fit the guidelines called for. Manual Underwriting (commonly called "MU" here) is when human eyes go over all the information chugged through AU to make sure everything jibes.
Think of it as fact-checking. They want to make sure that everything is correct and no one fibbed or exaggerated. Back in the "day" people could get mortgage loans based on their word. Today's not quite as lenient as that.
So, bottom line is that unless you lied (not saying you did, obviously) or the LO fudged too many numbers on the AUS, or you immediately go out and buy $200K worth of furniture on credit (thus messing up your DtI beyond all recognition) or have a brand spanking new late on an existing mortgage note, you should be golden.
That said, *knowing* that and *believing* that are two different things. You'll come back here from time to time stressed out because X is taking too long to return your calls, or Y needs one more document. And while we'll TELL you that you have nothing to worry about, you'll still chew nails and spit lead. That's just the way it is.
And we'll KEEP telling you. We'll be your personal support group. Why? Cause we've ALL been through it -- whether high 500s midscore or perfect 850 midscore -- buying a home is S.T.R.E.S.S.F.U.L.
So do you REALLY have to worry? Nope. Will you anyway? Yup. 
@Anonymous wrote:
That is the coolest and best reply ever!
*laughs*
And the credit (ugh ... sorry, no pun intended) goes to YOU for the coolness of it.
Even if you didn't scratch and eke out every FICO point (AKA, work like the dickens on REbuilding your credit) and was simply (not so simple, I know) a "good boy" with your credit/finances, you worked hard for it and EARNED it.
(this is where you pat yourself on the back!)
But I can't stress (again, no pun intended) enough how comfy you should feel in coming here and venting if need be ... or coming in here and screaming to the high heavens how you've closed and are sitting in your new home, surrounded by boxes and panicking over paint colors. Again, that's what we're here for.
Part of the fun is sharing in the success of others. And knowing that it can happen to YOU!
(do I need to say it?) Keep us posted!!