07-25-2011 09:33 AM - edited 07-25-2011 09:37 AM
I'm currently looking at a fannie mae foreclosure that has been on the market for over 100 days. It is listed at 134K, but my realtor believes it can go somewhere between 110-120. It doesn't need renovating. I applied for preapproval of 130K and it was sent for manual underwriting because it didn't make it through the automated system. The broker said it isn't denied at this point, but they have to take a closer look before approval. I also have some past paid judgements (details below) and am wondering if those will interfere with the loan approval or if any of my other information will interfere. What can I expect from this point?
07-25-2011 11:55 AM
Is your current credit card your 1st since the charged off credit card? You say you pay it in full every month, but how much is the balance that is reported on the statement?
Looking at a 130k loan at 3.5% down you would need a down payment of 4550 + closing costs and you are showing only 4500 in the bank right now.. that'll be a tough sell.
you have mentioned a 685 EX score --- is this real or FAKO? and what are the other 2 FICO scores? remember they take the middle of all three and most lenders require a 620 min.
07-26-2011 08:57 AM
It is my first credit card since the charged off credit card years ago. The reporting balance on the statement is $65.00.
My lender pulled scores are EX 685 EF 691 TU 680. The middle score they are using is 685.
07-26-2011 10:54 AM
Are you applying for FHA financing or conventional? With conventional it's very hard to get a manual underwriting approval, but with FHA it's quite common. Your situation looks doable for an FHA manual underwriting review, but it does depend on the property taxes/homeowners insurance for the home you are buying. I suspect it was because of the public records why you may not have gotten an automated underwriting approval.