01-30-2013 08:08 PM
My husband finally received the mortgage commitment letter but he had to pay all collections including the one not even reporting on his cr. This totals $11k. Our LO is increasing our loan amount to cover these pay offs. I am just curious how he is able to do this. We were initially approved forb$135k our downpayment is $40k and our emd was $2k. Purchase price is $178k and the home appraised for $180k. The sellers are paying 6% towards our closing costs. Is the increase possible due to the amount of the appraisal?
01-30-2013 08:13 PM
He is probably able to bump up the loan amount due to compensating factors: mainly the size of your down payment. I'm sure others that are more knowledgeable than I can comment more specifically.