05-10-2013 12:09 PM
Hello I have lurking for a while and now I am at a point where I could pull all of my hair out
I have been pre approved for FHA 142.5K so I found a house sent earnest had the home inspection done and gave the lender $450 for the inspection this is all since 04/26. So today I receive a email that I am at step 2 in the process from my lender. This step is appraisal pre underwriting (what in the world is that never heard of it) I have already given bank stmt, taxes, w2, pay check stubs, surv benefits for my child and I am a nervous wreck. Supposedly this step takes 48 business hours so I am sure that I wont hear anything until next Wednesday some time.
My question is that the lender said that my DTI is fine but I noticed on the credit report that they pulled the amount of my Nelnet loans are different than on the one pulled from free credit report.co. How can that be? Not to mention they along with my Sallie Mae loan are in forbearance but he said the DTI is fine should I not worry about it
I asked my LO to be honest did he think it was a go. He said I have the credit, income, and DTI he would never give an approval if he did not think it could make it through underwriting.
Now I want my house and my son wants to move can someone give me some encouragement or insight into this process its driving me crazy
05-10-2013 12:25 PM
we havent closed yet, we are almost to closing but we have came across some issues with my approval even after i have paid for earnest and appraisal. so far the banks are re assuring uw cleared everything but my LO was just being honest with the possibilites of saying no and it really is scary. i hope you guys can go through with the loan
i have studen loans defferred for 12 months, with FHA they cant count student loans if you do not have to start paying with in 12 months. i forget what forebearence means?
05-10-2013 12:45 PM
Let me see if I can appease your fears a little. I am no expert, but I have been through this process very recently, so here goes:
* You are going FHA financing, which requires an appraisal to determine whether the value is in line with the purchase price. The appraisal typically comes before the initial underwriting process. I assume that is what was meant by pre-underwriting. You will want the appraisal to come in ABOVE the agreed sales price. If it comes in below, the seller will either need to bring the price down to match, or will have to use alternative financing. I understand your anxiety. Out of the entire process, this was by far one of most nerve wrecking. There are so many unknowns and the art of appraisals is by no means an exact science. I hope your appraisal goes well!
* Where exactly did you get your credit report from? Freecreditreport.com is not the same thing as https://www.annualcreditreport.com/cra/index.jsp . The site I provided to you is the place you would need to go to retrieve your current credit reports from the credit bureaus directly. While it is not the most graceful process, it is the most legitimate. Also, if there difference between balances, if the reports were pulled on different dates or if the reporting credit bureau are off due to when it is reported to that particular bureau, that is also a possibility. In either case, you should consider paying for a report of two and maybe even a couple of FICO scores for y our own research and peace of mind.
* As hard as it is to confidently move through this process, you should make every effort to ask all the questions that you have. You need to communicate with your loan officer/broker to the point that you have no doubt how the process is going. If your loan officer is confident about your chances, then that confidence should reflect in you as well, within reason of course. If you have a loan officer that is bothered by your many questions, then that is another issue altogether.
In short, my advice is: Get your current reports if you feel there is a discrepancy. Pay for them is you must. This will give you peace of mind knowing that your information is correct or you will second guess everything. Sit down the write out all the questions you have about this process, your concerns, etc. If your loan officer works well with email, email him. This way you have a tangible response you can refer and read over and over till it makes sense rather than using your memory which isn't always the most accurate tool. And finally, use your realtor as an alternative resource. They have experience with helping clients like yourself and can offer alternative solutions as well.
Hope this helps!
05-10-2013 02:19 PM
05-10-2013 08:08 PM
05-11-2013 07:28 AM
You said you are in pre-underwriting. That means your file is being complied by the processor. Part of that process is getting all of your data (credit, income and appraisal) put together for the underwriter. The underwriter is the one that approves the loan subject to certain conditions or doesn't approve the loan.
You should have supplied your student loan data to your LO with your application. If you haven't provided that information, then take the time this weekend to put it together and get it to your LO on Monday.
As to giving your inspection funds to the lender - do you mean you paid for an appraisal or do you mean you actually paid the lender for an inspection? Normally, you hire the inspector directly and pay them directly at the inspection. I have never heard of a lender ordering the inspection as you are the buyer and responsible for having the property inpected within the contracted inspection period. What is the permitted inspection period on your contract?
05-11-2013 08:05 AM
05-11-2013 08:09 AM
You are correct. It is best to provide the information that is asked from you rather than volunteering info.
However, the LO should have asked you for your student loan info so just have it ready. Where are you getting the payment of zero for your student loans? From your cr report while they are in forebearance or someplace else?
05-11-2013 08:15 AM
05-11-2013 08:19 AM
IME, processors don't work the weekends and if they told you Friday afternoon that it would be 48 hours then they won't actually look at the file until Monday morning.
If you have a good processor they will go through the entire file first to gather a list of items they need and email it to you so you can prepare everything at once rather than asking you for each thing separately.
The file doesn't get submitted to the u/w until the appraisal is back anyway, so you have some time to get everything to the processer.