12-11-2012 06:27 AM
So here's the back story...
I am doing new construction and my closing date in not until May 2013. Becuase I am doing new construction, my loan application had to go to Underwriting. I found out last Thursday that my application has been approved by U/W and in April I would have to submit updated pay stubs and bank statements. No Problem. Here's the question though...
The amount that was submitted to U/W was $369,150. This amount was with an estimated upgrades package of $10,000. Well, I recently went to my design appointment to pick out my finishing and the instead of spending $10,000 I spent, about $17,000. Now, the original application included a projected $10,000 ($369,150), but since I went over by $7,000 (bringing my total loan amount to $376,150), what will they do when its time to close. Will this additional amount be included, or will I have to pay out of packet at closing? Is there normally wiggle room for something like this?
12-11-2012 06:59 AM
The lender will add the additional cost to your loan amount.
If you were shopping for an existing home, the lender/UW team would give you a maximum amount you were approved for. But since you're doing construction, they just run the application at the projected cost of the project. It would be unreasonable to lock the loan amount this early in the process. Just submit the additional cost documentation to your lender and they will update the total loan amount.
12-11-2012 07:09 AM
Thanks Nois - Is this something I should have the builder do now (submit the updated cost) or is this something they (the lender) will see as we get closer to closing?
12-11-2012 07:17 AM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.