I received my conditions and feel like crying...

[nvme]

What a week. Finally received our conditions and there's a whopping 14! All this time i thought we would be ok since I paid off my 4 past due accounts from 2006 when I was without work for 4 months. My fiancé has stellar credit but my score is 659. I don't owe anything except the $1500 from my current accounts which I planned on paying off now but they want me to explain how I intend on paying a mortgage with a 424.94 general loan payment from my check on my 401k. (It gets paid in full in August). In addition they want letters of satisfaction but Arrow Financial went out of business in Feb 2012 and of course it's not on my old banking statements. Through all of this we get news that my fiancé grandfather is gravely ill and may now have to fly out of town. This is too much at once not to mention I actually am working through day and can only gather as much info as I can to return it to the bank in 10 days. Do we even stand a chance? now I understand when people go through so many emotions through this process. I will never do this again! (Buy a home that is) 

[JM-AM]

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@nvme wrote:

What a week. Finally received our conditions and there's a whopping 14! All this time i thought we would be ok since I paid off my 4 past due accounts from 2006 when I was without work for 4 months. My fiancé has stellar credit but my score is 659. I don't owe anything except the $1500 from my current accounts which I planned on paying off now but they want me to explain how I intend on paying a mortgage with a 424.94 general loan payment from my check on my 401k. (It gets paid in full in August). They are just asking for a LOE (Letter of Explanation), keep it short and to the point. In addition they want letters of satisfaction but Arrow Financial went out of business in Feb 2012 and of course it's not on my old banking statements. Is it listed on your Credit Reports showing $0 balance? (again is a LOE, use a little imagination to come up with a way to show satisfaction since out of business).Through all of this we get news that my fiancé grandfather is gravely ill and may now have to fly out of town. I hope everything is okay. Family first, house second take care of what you have to, can always apply again if you really had to.This is too much at once not to mention I actually am working through day and can only gather as much info as I can to return it to the bank in 10 days. Dont stress over it, you will see things will fall into place and have all 14 conditions sent back. Do we even stand a chance? Yes now I understand when people go through so many emotions through this process. I will never do this again! (Buy a home that is)  I have had clients who have had 30 conditions or there abouts. Just be ready once you submit conditions, the UW can still issue additional conditions (not saying it will happen, but it is always a possibility). Do not get alarmed, just respond with what you need and send them in.

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[nvme]

Thank you JM-AM. I kept it at one page. I explained why I took the loan at a lower interest rather than using high interest cards. I explained the payment is high because I chose to pay it off in a year and I explained why we can afford the payment since we don't have extra expenses like children, pets, and high expenses since its only us two. It sucks I can't mention we want to rent the first floor but I want them to see we can afford the payment on our own and aren't dependent on a tenant (I didn't mention our rental plans). hopefully they'll understand my explanation and not ask for anything else lol. It's tough trying not to ramble about what occurred with my past accounts since I want to make the UW understand what caused the issue, what I did to fix it, and how it won't happen again. Thanks again.. 

[BCullum]

LOE's are just that Explanations, the underwriter filters through tons of files a day. The last thing he needs to see is a short story about why X debt happened or why Y payment was late. Out of the 6 or so LOE's I made The longest was 4 sentences, and he accepted all of them. Make them short, to the point, and you wont have any issues. 

[nvme]

Wow 4 sentences?! I wasted a lot of time then. I will revise on of my letters and shorten it. Thanks BCullum.

[BCullum]

You dont have to make them four sentences but when explaining something you want it literally to be short sweet and to the point. I felt I satisfied the request with four sentences, you may need more to explain the situation. But a full page LOE is a little much IMO.

[MovingForward_2012]

+1, you should be able to fit 5 explanations on one page. :-)