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Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
0

Getting pre-approved for New Construction Home

Here is our scenario.  We want to buy a new construction home, that will not be finished for at least 7-9 months.  In 5 months from now, it will be a year since my last (30 day late) baddie.  Can we get pre-approved now, considering that we wouldn't close until after the baddie falls off?  We don't want to wait until December to app, because  then the house wouldn't be done until the end of next summer.  If we get pre-approved now, they will be done next spring.  Anyone have experience with this at all?

 

Thanks in advance! :manhappy:


Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


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Valued Contributor
Repo-ed
Posts: 2,954
Registered: ‎02-09-2012
0

Re: Getting pre-approved for New Construction Home

What type of loan?

 

Do you have 20% to put down?

 

The score in your siggy, up-to-date?

Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
0

Re: Getting pre-approved for New Construction Home

[ Edited ]

It would be for an FHA loan.  We have approximately 5% to put down

 

Yes, my score is current from this site as of 6/25.  Only going up as baddies fall off I hope..

 

our DTI is 22%, been at our perspective jobs for 10 years each, and make a decent combined income. 

 

My scores from other sites:

 

CreditSesame: 728

CreditKArma: 671

 

Costco:

EX-643

TU-661

EQ-661

 

 


Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


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Regular Contributor
indecison
Posts: 226
Registered: ‎05-24-2012
0

Re: Getting pre-approved for New Construction Home

If it were me I would talk to the builders lender to get approval and see what they say. You don't have to use them when it comes time to get full approval but they may overlook the 30 day late when issuing a pre approval letter.

Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
0

Re: Getting pre-approved for New Construction Home

Anyone else have some insight into this?  Any get pre-approved before any lates fell off within the past year?  Lots are going fast, so we want to act fast!!

 


Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


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Regular Contributor
DM6410
Posts: 131
Registered: ‎02-15-2010
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Re: Getting pre-approved for New Construction Home


ccubedzx3 wrote:

Anyone else have some insight into this?  Any get pre-approved before any lates fell off within the past year?  Lots are going fast, so we want to act fast!!

 


I got preapproved for a mortgage today via FHA and I have a 60 day late from 8/11. LO didn't even mention it, not sure if she didn't mention it because it'll be a year old next month or what? I was going to do a new construction home buy but my builder (RYAN Homes/NVR) is not offering any closing cost incentives or asst,only thing they are offering is ($7k off purchase of morning room/finished basement); not enough for me when seller can provide 6% of price and other incentives for me....so now I am looking for existing.

As far as my credit goes, I am a work in progress...
Regular Contributor
JonRun
Posts: 149
Registered: ‎04-29-2012
0

Re: Getting pre-approved for New Construction Home

I got approved for the FHA maximum last month and have a 30 day late with Citi from October 2011. Loan Officer didn't even mention it, just emailed me the pre-approval letter and said I was good to go. My middle score at the time was 627.
Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
0

Re: Getting pre-approved for New Construction Home

Dm, Jon, Thank you for your help.  I just hope we can get pre-approved as well.   I need to get a pre-approval letter before I can sign a purchase agreement.  We just need to secure a lot soon as the subdivision we are looking at is selling out fast.  There are only 5 lots left for the builder we want to work with...I don't think they would be there until December.  Thank you for giving me hope!

 

 


Starting Score:5/22/10 590
Current Score: 6/11/13 670
Lender Mid Score: 6/11/13 670

Goal Score: 700


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Regular Contributor
JonRun
Posts: 149
Registered: ‎04-29-2012
0

Re: Getting pre-approved for New Construction Home

The way we did it was to talk to the owner of the lot who is also the builder. We told him which lot we wanted and he suggested a designer. We picked out a floor plan we liked and made some modifications to customize it to what we want. The designer is still working on the plans so it has given us some cushion with my credit situation. I was worried at first but I know now that he won't be done building the house until my baddie is a year old even if he starts now. Hopefully they will be done with the plans today and we can get started. Good luck and keep us posted!
Member
patrick74
Posts: 9
Registered: ‎07-27-2012
0

Re: Getting pre-approved for New Construction Home

I would highly recommend considering financing with the builder, often times you can get more lenient approval terms and conditions as well as more perks! I live in Texas and well i guess we do do things a bit different here..lol


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