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Established Member
Posts: 16
Registered: ‎02-09-2012
0

Denied at underwriting

I have been on the boards here since I joined back in February.  The fateful day that a mortgage banker went from "shouldn't be a problem" when we discussed recent challenges in our credit to the actual pull of our credit.  Needless to say the actual pull was way worse than any of us imagined.   Husb 490/510/530  mine 480/499/505.  Yep that is darn ugly!  So I came here with my tail between my legs to become better educated and figure out a quick plan to put it all together.  LO told us to have 6 mos of clean credit and come back and reapply.  Reran credit 6/5/12--husb 576/602/644, me 579/610/622.  LO ran us through automated UW, went and had some conversations with bank peeps and lo and behold, we were signing docs and getting appraisals done.  The house we are buying is my inlaws'.  They found a place that had been a waiting list and now opened up.  They couldn't hold off so in February, they moved in.  To help ease the strain, we got assurances from the bank that we should be good to go by July, so we took possession of the house and took over payments.  All the while I'm reading here about the absolute clean credit for 12 mos, asked LO, said to just keep plugging away.  File sent to underwriting on 7/13, and the absolute wait was killing us.  While I'm reading about minimum scores and clean 12 mos credit, back of my mind says -we will get denied.  Voice opinion to LO, claims things are moving along, we are almost done.  Well, if you made it this far, you can guess what I'm saying next.  We got denied in underwriting.  in the last 12 mos-16-30 day lates, 3-60 day lates and 2-90 day lates.  The 60 and 90 day lates were stupid, but necessary when a vehicle broke down with a costly repair and then was paid off.  So I robbed Peter to knock off Paul.   At any rate, we have had squeaky clean since Jan 2012.  Everybody on auto pay, student loans out of deferrment for over a year and with each month that passes, these lates start dropping off.

 

I needed to vent here, but is there any hope of pulling this off before December or am I basically sitting on my hands while things straighten out on their own?   I have GW every creditor at least 10 times, and 10 different people responding with the same silly "we don't do that".  For those of you it has worked for, Kudos!  I haven't yet found the weak link!  There are no collections just shady credit when we hit a rough patch last August.  I had hoped after 6 mos of spotless/autopaying, someone would smile and write one off, but not yet.  

 

Any and all comments/suggestions welcome!!  :smileyfrustrated:  

2/12 Lender Pull: EQ 490/TU 515/EXP 508
7/12 Lender Pull: EQ 579/TU 615/EXP 591
Regular Contributor
Posts: 226
Registered: ‎05-24-2012
0

Re: Denied at underwriting

So sorry to read your story and what you have been through. I honestly don't think any lender will touch you with that many lates inside of 12 months. Someone may correct me but I just dont see it being possible.

Contributor
Posts: 86
Registered: ‎06-23-2011
0

Re: Denied at underwriting

I hate to agree but I dont think there is any way until those lates are 12 months old.

Regular Contributor
Posts: 119
Registered: ‎10-25-2011
0

Re: Denied at underwriting

I can't imagine how stressfull this all is for you.  I'd find a LO who's got a better grip on exactly what you need to do to qualify.  With 16 30day lates in the past 12 months, you may end up having to wait 2 years before someone will give you a mortgage loan...

Established Member
Posts: 16
Registered: ‎04-16-2012
0

Re: Denied at underwriting

What a nightmare I'm sure and I'm sorry your going through this. Everythin I have read on the forum says no lates for 12 months. Too bad the loan officer didn't give you this info up front. I'd be very upset.
Valued Contributor
Posts: 2,982
Registered: ‎02-09-2012
0

Re: Denied at underwriting

I believe what the situation is telling you is; you're not in a financial position to be a home owner just yet.

 

This may be a HUGE blessing in disguise.

5/2012: 560 credit scores across the board and $500 secured CC
12/2014: 750+ scores across the board and $80k in revolving credit

Get those baddies removed!!!
Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
0

Re: Denied at underwriting

Yeah your gonna have to wait it out, we all have to do it.

Established Member
Posts: 16
Registered: ‎02-09-2012
0

Re: Denied at underwriting

It gets better.  I got the official denial written by the underwriter--"12 months of clean credit-no exceptions".  Yep, in the email it was bold!  (I did tell my LO "I told you so") The last sentence-"this property is rejected for FHA financing due to the septic and the well being too close together.  FHA Regulations state 100', special approval can be given for 75', however this is 65'.  One will need to be moved before financing can be approved".   Conventional is another option, but they want double down, and really not that liquid, or I guess willing to be that liquid.  Not willing to drain the savings completely.  

 

But I thank everyone for their responses.  Yes, we have struggled through cut hours, cut wages, life happening, etc.  This sale was not suppose to happen for another year, but serious medical issues prompted the move before we were ready.  Hoping that they will let us stay put and rent for another 5 mos to clean the credit up.   Plus the issue of the well/septic.    *fingers crossed*

2/12 Lender Pull: EQ 490/TU 515/EXP 508
7/12 Lender Pull: EQ 579/TU 615/EXP 591
Valued Member
Posts: 49
Registered: ‎07-11-2012
0

Re: Denied at underwriting

[ Edited ]

I agree with everyone whatever you do NEVER use that LO again. Honestly...and don't take this the wrong way.... A good loan officer would have looked at your credit and laughed in your face and told you to come back. Not string you along and make you pay for an appraisal and inspection and all that. That's ridiculous! Hopefully you didn't pay some nonrefundable upfront fee like some lendors require, and if you did they are the scum of the earth for taking that money from you when they knew all along you didn't qualifty.


I doubt very much your loan application even made it to underwriting. Seriously?? Your Middle score was 610 and a LO told you you prequalified? This person is not an honest person!!!

Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
0

Re: Denied at underwriting


imandy wrote:

I agree with everyone whatever you do NEVER use that LO again. Honestly...and don't take this the wrong way.... A good loan officer would have looked at your credit and laughed in your face and told you to come back. Not string you along and make you pay for an appraisal and inspection and all that. That's ridiculous! Hopefully you didn't pay some nonrefundable upfront fee like some lendors require, and if you did they are the scum of the earth for taking that money from you when they knew all along you didn't qualifty.


I doubt very much your loan application even made it to underwriting. Seriously?? Your Middle score was 610 and a LO told you you prequalified? This person is not an honest person!!!


I think you should talk to your in laws about doing a Lease with Purchase Option from them.  You aren't going to be able to get traditional financing until you've had 12 months of spotless payment history.


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