After today, I am hoping that the last condition of my initial loan commitment is satisfied (PMI approval). I had originally applied over a month ago without knowing exactly how much I would have to put down, with a proposed LTV of 87.75%, DTI of 25%. I close 1 month from today (June 15). I passed UW pretty easily, with a plethora of statements and LOEs. The thing is, I passed UW and had enough money to close without using $10k from my IRA as a first time home buyer.
Now that this first loan is "unconditional", I'd like to modify the loan, so that I ONLY change the LTV to 84.99% (nothing else), moving me into a lower PMI tier. I realize that I will have to go through UW again, but it should only be a matter of showing a new bank statement, my IRA statement, and an LOE that the $10k is a penalty-free withdrawal from my IRA as a first time home buyer.
How often are initial, unconditional loan commitments modified after UW and before closing, and how easy is this to have done? Is there anything in the above mod plan that could potentially screw up the existing loan? Part of me really wants to put more down to get into that lower tier of PMI, save $50 a month in PMI payment, and start with an extra 3% of home equity. But the other part of me is saying not to poke the hornet's nest, and just leave well enough alone.
Any advice or experiences are appreciated.
