Reply
Frequent Contributor
MissMia75
Posts: 389
Registered: ‎05-02-2011
0

Re: Declined at underwriting


webhopper wrote:

ReBuildingAgn wrote:

See that scares me. I don't think my loan funded today (didn't mention anything about it). I was going to app for a better credit card so I can ditch my rebuilders, but now I feel like I should wait.


You should wait at least 30 days after closing...  sometimes the lender does a post-closing audit, and they'll pull your report again... If your file doesn't pass the audit, you get to hand your keys back... its important that you don't run up credit card bills or apply for new credit to get furniture etc. during that time frame.

 

Do without the mattress and curtains if you have to...  I hear wal mart has a great deal on inflatable queen size air mattresses :smileywink:  And Goodwill always has sheets to hang on the window for privacy!  I know that's ghetttoooo with a capital G, but its better than handing back your keys!!!


Wow, this is terrible advice.  I have never heard of such.  Once the loan is FUNDED and recorded that is it.  The financial institution will typically perform an audit on a file, but after the Funding and Recording they cannot ask for the home back.  Please do not scare anyone with this as it is not true at all:smileyindifferent:


Starting Score: 06/2011 505 EX 523 Lender Pulled
Current Score: 08/2011 628 EX 575 Lender Pulled
11/14/2011 TU 584

Goal Score: 700


Take the FICO Fitness Challenge
***Closed on my home 05/18/2012***


Regular Contributor
my25reasons
Posts: 177
Registered: ‎12-16-2011
0

Re: Declined at underwriting



Wow, this is terrible advice.  I have never heard of such.  Once the loan is FUNDED and recorded that is it.  The financial institution will typically perform an audit on a file, but after the Funding and Recording they cannot ask for the home back.  Please do not scare anyone with this as it is not true at all:smileyindifferent:


Actually, I believe it to be true as well. I was told at my closing last week that the bank gets 30 days to review my file. I think another poster actually did have to give their keys back. I wouldn't consider it scaring anyone. It's important to know things like this.

In my wallet:
Discover More / Chase Amazon / Chase Freedom /Chase Business Ink / Chase Slate / Capital One Cash Rewards / Walmart Discover / Kohls / JCPenny / Home Depot / Art Van

Experian Direct PLUS scores: Experian 744/ Equifax 763/ TU 744
Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
0

Re: Declined at underwriting

[ Edited ]

I wish an actual loan officer would come along here (Shane?? Dallas???  ANYONE??)  Webhopper continues to spread this nasty rumor all over the mortgage board.  And now, my story of losing the house after closing is the "proof" being used in other posts to tell people this 30 day thing.  What is your point?  I've been on these boards a very long time and have ready many many posts, and I consider myself a very well educated mortgage consumer.  I have never heard this.  Just today on another post you blathered this crap.

 

I had to give the keys back after closing, but BEFORE FUNDING.  Most people don't even know the word "Funding."  I sure didn't.  I thought after we closed we were golden.  I bet 99% of the time that is the case.  (This is just an example of the age old question around here - "Do they pull your credit again?""  YES YES YES THEY DO!)

 

As Mia and most everyone else said, once your loan funds and the title is recorded, do whatever you want with your credit.

 

OP- sorry to hijack your post.  I think it is getting a LOT of attention because of the title and this is the fear of everyone who lives on the mortgage board during home buying.  I just want the correct information to be out there.  This is such a huge source of education and support for people going through a very stressful time.  Comments such as Webhopper's just cause needless anxiety for people that have made it to the finish line, or thereabouts.

 

 

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Valued Member
needahome79
Posts: 54
Registered: ‎03-15-2012
0

Re: Declined at underwriting

[ Edited ]

@booner72 How did you lose a house after closing. How long after closing?

 

Nvrmind I just read the reply.

 

But on another note the bank can do an audit. To make sure all the t's were crossed and the I's were dotted kinda thing. They just called me b/c one page wasn't signed. The credit report thing has a timer on it. They are not suppose to pull with in 3 months of the original pull.

WF pulled Jan 11,2012

I closed     March 30, 2012 so b/c it wasn't 90day no "hard" pull was done. Not to say they didn't do a soft pull. But I have a subscription to a credit company to watch my Credit report ( I will cancel after the mortgage shows) so that I could be aware of ANY activity during this stressful enough process.

Closing and funding completely two different things. I closed on March 30 but wasn't suppose :smileywink: to have my keys until the all clear was given and that wasn't until the 3rd of April.

 

 

Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
0

Re: Declined at underwriting

[ Edited ]

A judgment was put on DH's credit report after Child Support Division found out we were buying (Had to get statements).  He was current but had arrears.  We had no idea that the judgment was there.  Last credit pull done prior to funding = no house for us.  This was in 2000.  It wasn't until now that I got my credit back and got a house.  After this happened, I just said screw it, and let everything go.  Figured I'd never get a home and resigned myself to be a lifetime renter.  The economy sparked my interest as the houses were SO CHEAP.  When we first moved to this area in 2005, the houses were 250 - 280K for just a basic house in the burbs.  I got mine for 150 (foreclosure).  it's an amazing house and at one time was worth 283.  I'm so glad I didn't get that house, now looking back.  I would not have wanted to stay in that town, the house too small, etc etc.  ( I guess I coulda sold).... but my point is, if this happens to anyone, as it did to OP in this post, It means that house was not meant to be, and the Universe was watching out for you, you just didn't know it at the time.  Am still traumatized by that, though.   Was Hugely Pregnant, had nowhere to go as we had 2 more days at our rental....just awful.


I want people to know from my experience that what's meant to be will be, and that YES, a final credit pull will happen prior to closing and/or funding.  So if something pops up, don't just wait and hope that it will go unnoticed.  Some might get lucky, but most probably won't.  Deal with it when it arises, don't lose more money and emotional pain. 

 

ETA:  It was the next morning after closing that it happened, when we were in the house w/ new appliances already delivered.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Regular Contributor
StrateUp
Posts: 233
Registered: ‎02-02-2012
0

Re: Declined at underwriting

 


>You should wait at least 30 days after closing...  sometimes the lender does a post-closing audit, and they'll pull your report again... If your file doesn't pass the audit, you get to hand your keys back... its important that you don't run up credit card bills or apply for new credit to get furniture etc. during that time frame.

 

...

 

I don't think so.

.

 

Valued Contributor
IOBA
Posts: 2,697
Registered: ‎08-13-2009
0

Re: Declined at underwriting

Just a tidbit to add to the thread.

 

When we were under contract for a short sale, I found something about Chase (who held the first mortgage).  They added language to the addendum that states that they can, at any time, change their minds about the sale.   Even after funding.   Even after we had moved into the house.

 

I asked several realtors, the title company, and lenders about this.  They said, that yes, even after everything was a "done deal" and things had funded, that Chase, with that clause could change their minds.  They said they had not seen it happen often (or not at all).   They explained it was Chase's way of protecting themselves if they later found out that there was something stinky about the previous owners or the transaction.  All entities involved assured me that it was VERY unlikely that Chase would recall the deal after closing/funding.

 

I didn't get that house.   The owners had been fighting with their mortgage company and after 3+ months, I was able to get out of the deal.   Too many flags.

 

The advise to ask for table funding is an EXCELLENT piece of advise!

 

If the purchase is a short sale, definitely read all the addendum.

Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
0

Re: Declined at underwriting

That 30 day thing is bull crap..

 

What are they gonna do, foreclose on you.. lol.. right.. hahahhaa..

Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Declined at underwriting


tooleman694 wrote:

That 30 day thing is bull crap..

 

What are they gonna do, foreclose on you.. lol.. right.. hahahhaa..



Agreed. My LO (who is one of the ones booner mentioned) confirmed you can apply for credit as soon as the loan is funded.

 

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}