Is it time for a new LO???

[msnabs]

Hello all,

  I have a few questions that I need to ask: First off, I was pre-approved for 100K through a mortgage broker to go to the USDA Guaranteed program. This was back in April. Since then, I have looked at several homes and have not found anything that I liked. SO.....today, I emailed my LO to find out if there was any way to wiggle around the 100K say maybe $115, so I could find more homes that are suitable for me.. I have been paying off my debts and have not created any new ones, was just trying to find ways to qualify for more...She then hits me with the whammy: not only do I not qualify for $115K, I don't even qualify for the 100K any more and its now closer to $80K. She states that it is because of new regulations in the USDA progam....WHAT new regulations???? And if this is true, why I am I just now hearing about it???? Would'nt it have made more sense to contact people that are using this program and inform them of the changes BEFORE, they find a house that is "out of their price range"???? Is it time to fire my LO??? I know I am upset and blowing off steam, but this is something that is very important and I dont want to waste my time!!

[Anonymous]

Just my take on this...

It's been several months and things are bound to change. Sometimes to your benefit, sometimes not. Interest rates, for example, change constantly and will ultimately change the amount you qualify for if DTI is a problem.

I personally feel it's the consumer's responsibility to keep up-to-date on things like this. Most LOs don't charge anything for pre-approval so i imagine they have tons of "clients" that never return after the initial pre-approval. It's unrealistic to expect them to call each one and tell them every time something changes. I might feel differently if they were being paid directly to do this or if there was an actual contract but that's unlikely.

I understand your frustration but take a step back for a minute and look at the whole picture

[msnabs]

I hear what you are saying, but I have to also add that I have been in communication with her. She and I have been emailing each other atleast every two weeks since the intial pre-approval. I have also asked her about the rate changes and she did notify me of that as well, in how that would affect me. So, with that in mind, I do think that it would have been feasible for her to notify me, since she also has an interest in closing the loan as well. I have also been on the USDA website and havent seen anything about any new regulations, so I am still curious as to what that is all about.....believe me, I am trying to be as objective as I can......***sigh****... I guess it was more or less her response to what I was asking, as if I was "doing too much"".. .Does that make sense???

[medicgrrl]

It wouldn't hurt to contact another loan officer.  I would also suggest trying to find a lender who has the MCC program and see how that affects what you qualify for.  It reduces your tax burden and allows you to qualify for a higher amount.

I have also been working towards the USDA program for the last 2 months and I haven't heard of any changes, except the rates, with the program.

Good luck!!

[Anonymous]

I know next to nada about USDA loans (Deemac is pretty knowledgeable on this loan type -- mayhap she might chime in), *but* I *DO* know that as interest rates increase, it lessens what you qualify for since it affects your monthly payment amount and DTI.

When we were playing with the calculators back in December/January we ran numbers for 6.5% -5% and the difference in amounts we'd qualify for were fairish substantial. About $20-50K IIRC.

[msnabs]

Thanks for the info guys......