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Help! Closing soon and LO moved up closing date!

Help! Closing soon and LO moved up closing date!

Hello! I received a telephone call from our loan officer this morning and stated she had some good news/bad news. The bad news was they were going to have to move our closing date, which should've been on the 9th, due to new loan requirements (we never went into specifics). She said the good news was I needed to refinance one or both of my vehicles to decrease my DTI ratio (she said all I needed was at least $120/mo less than what I have now to qualify)which would allow me to finance the house on my own, since my husband's score dropped another 10 points (I think it's in the high 550 range). I refinanced my vehicle, decreasing my DTI by $137/mo. They rescheduled my closing date for next Friday. For those who have experience, should I be worried that I won't get this loan? I know you'll need more info, such as my credit score - 620, I'm just feeling overwhelmed I can't think straight. I'm putting 5% down, and house loan is $357,212.00. Thanks in advance!
Message 1 of 12
11 REPLIES
Super Contributor

Re: Help! Closing soon and LO moved up closing date!

It's impossible to say what the chances are of this specific loan program going away are without knowing the exact program, as there are so many different programs available.  Do you know what type of loan program you are qualifying for?  Conforming?  FHA?  Sub-prime?  Alt-A? 
 
Sub-prime & Alt-A have guidelines that change quite rapidly (sometimes every week) and without much notice, conforming changes every now and then but it's telegraphed well ahead of time, and FHA hardly ever changes guidelines.

What is your income, your monthly payments on other debts, and what is bringing the score to a 620 vs. a higher score?  High utilization?  Negatives?


Message Edited by ShanetheMortgageMan on 10-05-2007 05:45 PM

Message Edited by ShanetheMortgageMan on 10-05-2007 05:45 PM
Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Message 2 of 12
Member

Re: Help! Closing soon and LO moved up closing date!

If you have DU approval, are they even required to re-check your credit score or verify for new debt?? I seem to remember that mine was good for close to 120 days..

Message Edited by cwalden73 on 10-05-2007 07:54 PM
Message 3 of 12

Re: Help! Closing soon and LO moved up closing date!



ShanetheMortgageMan wrote:
It's impossible to say what the chances are of this specific loan program going away are without knowing the exact program, as there are so many different programs available. Do you know what type of loan program you are qualifying for? Conforming? FHA? Sub-prime? Alt-A?
Sub-prime & Alt-A have guidelines that change quite rapidly (sometimes every week) and without much notice, conforming changes every now and then but it's telegraphed well ahead of time, and FHA hardly ever changes guidelines.

What is your income, your monthly payments on other debts, and what is bringing the score to a 620 vs. a higher score? High utilization? Negatives?


Message Edited by ShanetheMortgageMan on 10-05-2007 05:45 PM

Message Edited by ShanetheMortgageMan on 10-05-2007 05:45 PM


I know it's a 30 yr fixed, conventional loan. They were going through Fannie Mae. If my loan changes, I don't know what it's going to be now. My income, alone, is $96k/year. I do have several negatives that are at least 5 yrs old. I have 2 car pmts ($437 and $425), and $90/mo on student loans. I try to keep my current debt with small balances, to help increase my score. Otherwise, I use them and pay them off before the next billing cycle, to prevent interest fees. My credit score has come up --it was a lot worse!
Message 4 of 12
Valued Contributor

Re: Help! Closing soon and LO moved up closing date!

First Off, I don't understand how a LO can move a closing date - it is a term of the contract agreed to by the Seller and Buyer and they are the only ones that can modify it.  Loan officers, Realtors, etc are NOT parties to the contract (we can make suggestions, provide options, and give our 'best advice')  BUT the ultimate decision is with the buyer and seller.
 
Did this LO give a reason for moving the date?  This will need to be 'sold' to the seller and have his/her approval.  Now, our contract states on XXXXXXXXXX date or sooner if agreeable to the parties.  It has a 'time is of the essence' to it - meaning you darn well better keep it or risk default
 
Good luck - I hope the seller is ammenable (and that a rent back isn't needed also)
 


Message Edited by Lady_Scarlet on 10-06-2007 05:55 PM
Now a member of the UNOFFICIAL 700 Club - Plus scores of 734-734-747
Message 5 of 12
Moderator Emeritus

Re: Help! Closing soon and LO moved up closing date!

IMHO- The Realtor/LO/seller got together and wanted to push this up to get paid-

The LO thought he could pull a fast one.
Message 6 of 12

Re: Help! Closing soon and LO moved up closing date!

I kind of wondered how that worked. We already signed and locked in our rate and our LO told me, initially, that this was it. Now she's claiming it's the underwriters along with the new changes, that are causing a "change" which I don't even know what that is as of yet. I called them earlier to check the status on what exactly is going on and her assistant said she hadn't received anything yet. I'm ready to start looking for another LO or broker.
Message 7 of 12
Super Contributor

Re: Help! Closing soon and LO moved up closing date!

needtoknowmore your debt ratio is a bit on the high side, a little over 50 percent, but you should still be able to get an approval with at least 5 percent down.  One reason why the closing might've been pushed up is because this loan program might cease to exist after a certain date.  I would say that could be very likely if it wasn't a Fannie Mae loan, but also not too long ago Fannie Mae announced a reduction on the loan-to-value (LTV) it will finance on certain approvals through it's automated underwriting system, and your broker might have received notification that the loan needs to fund by a certain date to meet those LTV requirements.  If you haven't already, speak to your real estate agent about the possibiltiy of moving the closing date up, and I would also make sure your loan officer is in communication with your real estate agent about this change.
Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Message 8 of 12

Re: Help! Closing soon and LO moved up closing date!

Thanks Shane! I did speak to my agent this afternoon and he's going to keep in touch with my LO. Unfortunately, she was in a meeting and wasn't able to speak to him. What I don't get is if we had already locked in our rate and filled out the required paperwork, wouldn't that have already gone through the underwriter to determine whether or not we qualified for this specific loan? We have the 5% down with just enough reserves to qualify. I hope all goes well!

Message Edited by needtoknowmore on 10-08-2007 04:46 PM
Message 9 of 12
Super Contributor

Re: Help! Closing soon and LO moved up closing date!



needtoknowmore wrote:
Thanks Shane! I did speak to my agent this afternoon and he's going to keep in touch with my LO. Unfortunately, she was in a meeting and wasn't able to speak to him. What I don't get is if we had already locked in our rate and filled out the required paperwork, wouldn't that have already gone through the underwriter to determine whether or not we qualified for this specific loan? We have the 5% down with just enough reserves to qualify. I hope all goes well!

Message Edited by needtoknowmore on 10-08-2007 04:46 PM

That's really something only your LO would know.  Once your credit is checked, then with Fannie Mae it's good for 120 days from the credit report date.  There shouldn't be any deviation on the program availability if you are putting 5% down and it's a Fannie Mae approval... as 5% is what Fannie Mae requires to put down for their Expanded Approval Level-III right now.  If you got an Approve/Eligible or Expanded Approval Level-I, then $0 down is possible.  Expanded Approval Level-II is requiring 3% down.  You should ask your LO what level approval you got from automated underwriting.  More importantly you should ask why the closing date needs to be moved up.
Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Message 10 of 12