A little worried…First time homebuyer here! I’ve been reading here for a long time and thanks to everything I have learned from all of you I have been able to raise my Mid fico score up from 655 in February to 716 and have just been pre-approved for a mortgage of 150K at 6.5% I have a few worries though and have been told not to worry from my loan guy but need a second opinion. Here are the basics…
I make $4080 monthly, CC is 155 a month, car is 304 a month (have 13 months left on). I was originally going to get down payment asst. from the city I live in of 40K. I have 5K in the bank for reserves (been there for 5months). I do have 12 K in retirement but I also have a loan out on it (bad idea I know). The loan on retirement does not show up on my credit report. I pay directly from my payroll for that (160mth). Well, The city ran out of money so now the 5k I have will be needed to be put down with the Wish program(15 in down payment asst) So now I will have no reserves in savings. So my issue is now… My loan guy got my approval by using the 12k in retirement as reserves (I told him I am not sure I would be able to pull the money out because of the loan…he said not to worry) and he also did not include the 160 payment a month in the debt to income because he said it did not show up on my credit report he didn’t need to add it. That does not sound right to me. I have found out from my company I am only allowed at this time for a hardship withdrawl of 1800. I can only access all of the money if I leave the company.
So now I am being told to go find a house but I am worried that I will go and make an offer, it will go to the underwriter who will see the additional 160 out a month and only 1800 reserves in retirement and it will be declined. If you add the 160 in will my debt to income be to high? I am able to save 1k a month right now so it is possible by the time I find something and am ready to close I may have some reserves in savings, just depends on how long it takes. Will the underwriter take that into account or just decline it? Should I start looking for a house or a new Loan guy?
Thanks for all of your time and help!
