Loan Officers & Underwriters...A few questions please...

[Anonymous]

Hello,

Long-time viewer, first time poster!  This forum has been immensely helpful for a long time and I'm finally getting around to making an account and my first post - yay!  

Am hoping to get a little clarity from some experts - loan officers, underwriters, etc. on a few questions I have as I embark upon selling my current home and purchasing a new one as I'm relocating from VA to DE for my job.  

Here's the scoop on the situation:

*  Current income is 88K salary, 21K bonus =  total annual comp of 109K.

*  Relo will increase salary to range of 97K-100K base, so net increase of 9-12K, timing along with my MOVE to DE

*  Credit Cards will be around 10% utilization whenever I app for the mortgage

*  I have one personal loan, unsecured @ 20K ($570 / mo) that will be paid off WHEN I get funds from my existing home sale

*  Expected FICO when I app should be well north of 720 (it's 695 now and it still has 23K revolving balance reflected.  Also, absolutely no baddies at all my credit history)

Okay, so with that out of the way, my primary concern will be with the amount of home loan I qualify for.  I'm looking to use Navy Fed's 5/5 ARM with $0 down and likely purchase price of 375K.  With the salary increase and the reflection of the personal loan being paid off likely AFTER I go for pre-approval, my questions are:

*  If I get pre-approved at say 325K, would they look at increasing that once I can prove my salary increase and show them the loan that's $570 a month are paid off?

*  Any thoughts on how they look at doing the pre-approval while it still reflects I have an existing mortgage (I'll be waiting on offers for my current house).

Any other thoughts/considerations as I work through the process?  

Really appreciate your help in advance and if there's any other pertinent information missing just let me know and I'll share.

Regards

[DallasLoanGuy]

---

@Anonymous wrote:

Hello,

Long-time viewer, first time poster!  This forum has been immensely helpful for a long time and I'm finally getting around to making an account and my first post - yay!  

Am hoping to get a little clarity from some experts - loan officers, underwriters, etc. on a few questions I have as I embark upon selling my current home and purchasing a new one as I'm relocating from VA to DE for my job.  

Here's the scoop on the situation:

*  Current income is 88K salary, 21K bonus =  total annual comp of 109K.

*  Relo will increase salary to range of 97K-100K base, so net increase of 9-12K, timing along with my MOVE to DE

*  Credit Cards will be around 10% utilization whenever I app for the mortgage

@*  I have one personal loan, unsecured @ 20K ($570 / mo) that will be paid off WHEN I get funds from my existing home sale

*  Expected FICO when I app should be well north of 720 (it's 695 now and it still has 23K revolving balance reflected.  Also, absolutely no baddies at all my credit history)

Okay, so with that out of the way, my primary concern will be with the amount of home loan I qualify for.  I'm looking to use Navy Fed's 5/5 ARM with $0 down and likely purchase price of 375K.  With the salary increase and the reflection of the personal loan being paid off likely AFTER I go for pre-approval, my questions are:

*  If I get pre-approved at say 325K, would they look at increasing that once I can prove my salary increase and show them the loan that's $570 a month are paid off?

*  Any thoughts on how they look at doing the pre-approval while it still reflects I have an existing mortgage (I'll be waiting on offers for my current house).

Any other thoughts/considerations as I work through the process?  

Really appreciate your help in advance and if there's any other pertinent information missing just let me know and I'll share.

Regards

---

if you plan on paying something off.... the LO can exclude that from dti for pre-approval.

you will likely need at least one paystub from the new salary increase.... and expect questions about whether the commissions are likely to continue in the new city as well.

if navy services your loan, then they might have a little flexibility.

sorry i cannot be more definitive. i dont know their programs

[dursty87]

I was in a similar situation with Navy Federal just last month. I relocated to another state and a different company but my salary stayed the same. They will average your bonus from the past two years and they will also require at least one paystub prior to closing. I adjusted my pre approval amount twice and both times they just sent it back to the underwriter for a higher approval amount and I had a "yes" both times within a day. I was a first time buyer so I can't comment on already having a mortgage.

Good luck!

[Anonymous]

Thank you both for the info, very helpful.  My bonus amount has been the same the last three years, so we're good there.  I'm pretty sure my new pay would take effect at some point prior to closing, so that should work out too.

Sounds like I just need to wait until after this week when my card balances update and then can go for the pre-approval!  

Any others have experience with Navy Fed?  Any general comments/feedback?

[dursty87]

I would definitely wait until your scores reflect updated/lower balances as Navy Federal will only pull your credit once and base the rate off of that, DP, and LTV. They don't do a second pull prior to closing(at least not for me which they confirmed when I asked). When I got assigned an LO I wasn't very thrilled with the level of communication. However my loan processor was fantastic. I never even bothered calling my LO after that. All my questions I asked my processor which I don't think is normal per se but I didn't care. I do all my banking with Navy which is why I chose them for my mortgage plus they service the loan for its life time. Overall my experience was great and I closed in 30 days.