Stressful time this is! Submitted our application yesterday - LO said it was gonna go straight to processing that day, and should be in underwriting today or Friday. (Going thru DR Horton, everything from loan app to insurance to title is in same building) Preliminary interest rate of 4% based on my 628 mid score (hubby has a 646). Tentative closing date for 11/15, although we could move it up if we wanted to...but we need a 30 day notice for our apartment.
Do they call our bank and verify account balances? I just made a withdrawl and transferred some to pay off credit card bills this week, so my savings balance is about $300 less than it was and what I stated on Monday. Big deal? Hubby gets paid friday, so it'll be replaced. Bills came out of checking, so that balance is different, too.
And do people buy houses without huge savings accounts? We have enough for about 3 months payment saved up, and since our closing/apprasial/etc will all be paid for by DR Horton, I'm not stressing out about all that...but we just started saving a few months ago (aside from IRA contributions), so I'm a little stressed about that. And, god forbid, if it ever comes to touching the retirement to pay for the house...we'll do it. The IRA can be replaced...the house can't - well, it can, but not without years of bad credit, haha.
I know everyone freaks out during the underwriting process...but good lord!
Good luck! My FH and I are in the UW process right now ourselves. We actually don't have much in savings at all at this exact point in time. Perhaps one payment worth MAYBE. Hopefully they don't pay a lot of attention to that, otherwise I think we might be SOL. I didnt even consider that factor.
This loan stuff is so wishy-washy and confusing I think. I've seen where people have had BKs and foreclosures and 10k or more defaults on personal loans and they get mortgages, then people with scores in the mid to high 600s or low 700s with few credit items are denied.
I wish you luck!!
Hi there JPersat! I am SO glad I came across your post! We too are going through DR Horton! We're purchasing a home in St. Cloud. It's been such a nightmare for us so far. I have yet to hear if our file has FINALLY been submitted to USDA (the loan we are going for). It's been a back and forth battle with them, well with the LO really. We started in March but because our credit needed a little "booster" we were set up with their Home Buyer's Club. It is a great program but sheesh when you have incompetent people helping you it can really ruin the experience for first time home buyers! My issue was never with our Coach for the program but with our LO! We've been on top of EVERYTHING they ask us to do or provide, but when you expect the same in return, it does not happen!!!
When did you start the process with them if you do not mind me asking?
Last we heard from them was last Friday early afternoon to sign ONE more document before they send it to "underwriting for final approval" and determine if our file is in deed ready to be submitted over to USDA. The most frustrating thing of all is our LO told it was okay to let our apartment complex know we were moving, this was back in early August. Where we live we MUST provide a 60 day notice to avoid apying a penalty. Something I ALWAYS emphasized with our LO. It was really hard to get straight answerd from this person. Still is!!
NOW, we have until the 18th of this month and still no closing date!!!! Luckly we have my in-laws that are okay with us moving in until we hear from them, but could you imagine if we didn't?!? We will officialy be "homeless" come next week Thursday!! This has been such an inconvenience yet alone nerve wrecking experience for us!!
I am really, really NOT happy with their mortgage process!!! We too will be going their Title Service and Home Owners Insurance, but their mortgage process is by far the worst!
Hope you guys are doing far better than us, good luck!
Oh and to answer your question with regards to bank accounts, we too are in the same predicament. We've had to use our credit cards a couple of times since we needed to have at least 2-3 months of mortgage payment to show at closing, so our funidng has been a little tight to say the least. However, since this has been dragginout far more than expected, we now needed to dip our hands into that money since we had to pay our final rent on top of a penalty that we were unable to get out of since we are breaking our lease. Let me just say our rent is far more higher than what we'll be paying for mortgage so that really took a chunck out of our savings.
Furthermore, the other concern we have is that our Credit Report will expire end of next month. It was pulled in early May. The way things have been going with our file not reaching USDA, and their turn-around time not being "rapid" enough, we fear our last credit pull will expire and they will need to pull another one. Just so happens I had an old medical bill I have been paying monthly on, but the hospital decided to send it to collections! I lost 10 points because of that and now I am below the requirement for USDA. THAT right there as me really shaking in my boots!!!!
Our LO KNOWS where we stand but sometimes acts as if these things are not a big deal!! I just don't get it! We pay our debts, we work hard, we demonstrate how responsible we have been with our landlord, we have excellent income and it still is not enough for the lenders!! They have us jumping through hoops and sometimes end up blowing a bomb on us by not approving the application!! I just hope this gets done and gets done properly!!!!
We went thru the Home Buyer's Club, too - our "guy" was awesome..always answered questions when I needed him to. Our first loan officer sucked - didn't tell us what we needed to get together, etc...and ended up just up and leaving! We put our application in last tuesday. Our new LO said that processing takes about 1-2 days, and it would be in underwriting by the end of last week. I haven't heard anything, so I'm going to assume that no news is good news, haha. Our LO gave us a tentative closing date for 11/15, so I'm hopeful...we'll see!
Oh I LOVED our Home Buyer's Club coach! She was FANTASTIC!!!
The issue we are having is with our LO. Here we are day 4 and still no answer as to where our file stands! Has it been submitted to USDA? Is it still in their underwriting department? Did they end up with any other snags? Are we far along before it reaches USDA underwriting if it has not been sent yet? I mean, a simple email saying "Sorry for the delay, we should be done in "x" number of days" would sufice! Yes no news is good news when you know you have a dependable LO. Our process time has taken over a month!!!! This of course is because of mistakes our LO has been making throughout the process that my husband and I would catch sometimes and then inform him!!
Are you here in FL by any chance? Just curious to know if WE ended up with the same LO you guys had dumped.
We're trying to purchase a home in St. Cloud.
I just do not understand why it is so hard for this person to keep us in the loop!! Our days are counting down and so far it does NOT look like we will be closing anytime soon....
You on the other hand have at least a tentative date, we have nothing!! How frustrating!!
Good luck though!!