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Regular Contributor
Chbraswell
Posts: 191
Registered: ‎07-02-2012
0

Has anyone had these circumstances??

I am currently waiting for underwriter approval with a new bank after being declined from Wells Fargo because the u/w did not feel comfortable approving my loan for the following reasons:

  • 75,000 in school loans
  • had two judgements last year that was released and a collection about a year and a half after my chapt 7 bankrutpcy (however it is no longer showing due to the goodwill letters i wrote)
  • i lived with my parents for 1 year to help them out, so they are scared about me going from no payments to mortgage payments
  • and the lack fo savings, i have enough for a downpayment. (i had been paying down student loans so it wasnt until May of this year that i decided to buy a home.  I have about 6500 in there right now due to school refunds and a 401 k loan, the potential mortgage payment would be 550$ a month.)

 

 

So after hearing all those scary things, here are some of the good things about me:

  • downpayment of $6500
  • credit score of 647
  • no lates ( the collection was because i cancelled my tmobile account and for got about it and paid it right away)
  • 45% utilization of my cc's
  • Chap 7 discharged in may of 2010

What do you think my chances are?

 

Beginning:Explus 630 eq 573 tu 593
Current: EXplus:677 Eq 642 TU 727
Goal: Explus 700 eq 700 tu 800

Merrick: 1550 Capital One:1150 Barclay: 2000 Walmart: 300 Chase Freedom: 500
Member
cnelson
Posts: 28
Registered: ‎09-18-2012
0

Re: Has anyone had these circumstances??

I'm no expert, but I believe it would be beneficial to also know your debt to income ratio as this is another important factor.
Established Member
ch21
Posts: 15
Registered: ‎08-30-2012
0

Re: Has anyone had these circumstances??

Have you thought about going through a mortgage broker?? after we got declined from our first lender we are going through a mortgage broker that knows our faults and knows which loan that we should be approved for. We are still trying for a VA but i believe this new lender doesn't have the same overlays. 

 

But i'm still nervous about the outcome. I just feel better that the mortgage broker is the in between for us. They know what the banks want. 

Regular Contributor
Chbraswell
Posts: 191
Registered: ‎07-02-2012
0

Re: Has anyone had these circumstances??

That is who i am going through right now! I am hoping for the best and i wish the best for you too as well!

 

Dti?

 

 

income gross is $4880

 

Current debt $1120 ( but my loans are deferred) (car note, CCs, Student loans)

 

debt with new mortgage is $1670

 

34%

Beginning:Explus 630 eq 573 tu 593
Current: EXplus:677 Eq 642 TU 727
Goal: Explus 700 eq 700 tu 800

Merrick: 1550 Capital One:1150 Barclay: 2000 Walmart: 300 Chase Freedom: 500
Contributor
Blackhawks_girl30
Posts: 81
Registered: ‎05-18-2012
0

Re: Has anyone had these circumstances??

I just went thru pre-approval recently with Wells Fargo and a broker.  Both places said I needed to show min $11,000 in savings to buy a $125k house.  They both said I needed to show down payment, 3 months mortgage reserve payments, 1 years worth of Home Owners Insurance, and money to cover all closing cost (even if you have seller pay them).  Are you going for FHA loan?  I wish you luck, this stuff is stressful!!

Regular Contributor
Chbraswell
Posts: 191
Registered: ‎07-02-2012
0

Re: Has anyone had these circumstances??

Really?  I am going for an FHA loan. That must be extra, because FHA does not require it, based upon their guidelines. 

 

 

 

http://portal.hud.gov/hudportal/documents/huddoc?id=4155-1_5_secB.pdf

 

it says the need to have funds to vocer borrower paid closing costs and fees at the time of settlement.  Funds used to cover the required minimun downpayment, as well as closing costs and fees, must come from acceptable source adn must be verified and properly documented.   Other than that, it's probably a Lender over lay if that is a FHA loan.

Beginning:Explus 630 eq 573 tu 593
Current: EXplus:677 Eq 642 TU 727
Goal: Explus 700 eq 700 tu 800

Merrick: 1550 Capital One:1150 Barclay: 2000 Walmart: 300 Chase Freedom: 500
Established Member
mikki3398
Posts: 27
Registered: ‎05-30-2012
0

Re: Has anyone had these circumstances??

I would maybe check with your broker to see if there are any state specific programs. I live in Utah, and there are programs through the Utah Housing Corporation that have more relaxed terms. My husband and I just got our final approval from the underwriter and should be closing soon. The program we used required no down payment. It is an FHA loan and the 3.5% down is financed into a second mortgage through the state. This does mean that are payment is about $25 higher than it would normally be, but we can live with that. We are also getting seller paid closing costs so all in all after everything we are paying just over $1k out of pocket to get into our house. We also only have a few grand in savings. We do have a few other assets, like cars that are paid off and 401ks, but we don't have a lot of reserves. After our mortgage our DTI is about 37%, which our LO said was pretty low and I think that helped out. We were really expecting to have to rent for another year while we finished saving up the money, but were very pleasantly suprised to be able to find a way to buy right now, since housing prices in our area are going up.  

 

States want people buying houses, more houses = more property taxes, and on top of that more jobs. So you never know, there may be something that you can do to get around needed all of the money upfront. 

Regular Contributor
Chbraswell
Posts: 191
Registered: ‎07-02-2012
0

Re: Has anyone had these circumstances??

that would be great!!

Beginning:Explus 630 eq 573 tu 593
Current: EXplus:677 Eq 642 TU 727
Goal: Explus 700 eq 700 tu 800

Merrick: 1550 Capital One:1150 Barclay: 2000 Walmart: 300 Chase Freedom: 500
Regular Contributor
courtney091082
Posts: 244
Registered: ‎07-06-2007
0

Re: Has anyone had these circumstances??


Blackhawks_girl30 wrote:

I just went thru pre-approval recently with Wells Fargo and a broker.  Both places said I needed to show min $11,000 in savings to buy a $125k house.  They both said I needed to show down payment, 3 months mortgage reserve payments, 1 years worth of Home Owners Insurance, and money to cover all closing cost (even if you have seller pay them).  Are you going for FHA loan?  I wish you luck, this stuff is stressful!!


Wow, I'm shocked they wanted you to have full closing costs too? I just talked to a mortgage broker, we're submitting our application on Saturday, and she said all I need is the down payment in my savings and we don't need any reserves even. Plus, she comes highly recommended, but maybe it's because our scores are high 700s? I can imagine that would be very stressful!!

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