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New Member
Posts: 4
Registered: ‎03-04-2011
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How Secure Should I Feel With a Prequalification?

I was recently prequalified for an FHA home loan through Bank of America.  My credit score meets their 620 requirement (just barely), but I do have 3 collection accounts and 1 paid judgement on my credit report.  I guess my question I am throwing out there is how confident can I be that I will make it through the underwriting process.  I understand a prequalification is completely different from an approval.  I asked my loan officer and he said that he (aka the computer) took into account my credit report as well as my score, income,and  DTI (which is about 43% due to student loans).  Even though I will need to explain the negatives on my report, can I confidentally go out there shopping for a home AND then make it through the underwriting process??

Frequent Contributor
Posts: 416
Registered: ‎03-08-2011
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Re: How Secure Should I Feel With a Prequalification?

I'm sorry I can't answer your question.  I always assumed once you were pre-approved you were "free and clear' and now I am seriously freaking out over having to go through underwriting.  It scares me. haha

►START March 2011 (FICO) EQ: 537 • EX: 551 • TU: 574 | 3 Collections | 34 Medical Collections | 2 Judgements | 1 Paid Collection | 11 name/address variations
►January 2012 (FICO) EQ: 564 • EX: 643 • TU: 576 | 1 Collection | 18 Medical Collections | 1 Judgement | 0 Paid Collections | 0 name/address variations
►February 2012 EQ:??? • EX:??? • TU: 580 | 0 Collections | 17 Medical Collections | 1 judgement | 0 Paid Collections | 0 name/address variations
►March 2012 EQ: 550 =(
Established Member
Posts: 20
Registered: ‎01-26-2011
0

Re: How Secure Should I Feel With a Prequalification?

Underwriting will look at your situation more closely.  Your collection accounts, if not paid, could be an issue.  Lenders want to be first in line should something go wrong.

 

You also mention student loans.  These could be an issue depending on their status and on the type of loan you are applying for.

 

I'm not a real estate agent, I'm a mortgage loan officer.  Discuss with your agent the contract clause that let's you get your earnest money deposit back if you don't receive specified loan.  Between the pre-qualification and careful wording of this clause, you should be ok.

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