Mortgage Professionals ---Question Please help

[CreditHelp27]

BK filed 2 years ago this April. Received a conditional preapproval from lender, but can't close until April when Bk is 2 years old.

Meanwhile, my current apt. lease is expring next month tried to write a letter to manangement to stay until April. Received denial response two days ago, now I have 2 weeks to find a new temporary place to live or i'm stuck in another 12 month lease.

We found several apartment complexes that take short term 3 months leases! Great, but I have to do an app to get approved. Will apping for an apartment right now look bad during underwriting.

Current midscore is  so as far as FHA is concerned I do have a little wiggle room as far as score is concerned, but I just don't want this to be a huge issue. I would go to extended stay hotel, but I have two small children  and it's not an ideal situation for them.

Any advice?

[hawkeye33]

The additional app might trigger a red flag, but I would guess this is something you can handle through letter(s) of explanation. I would proactively provide your lender with a letter explaining that your current lease is up in 2 weeks, that you will be apping for a short-term lease in order to bridge until April, etc. Provide them with copies of your lease and the application for the short-term, including the terms of the lease being a 3-month.

It's difficult to say without more info whether the new app would impact your score or not as a new inquiry. If you're really close to any of the lender's hard and fast score requirements, that could cause an issue. But I would think manual underwriter would acknowledge that you have to live somewhere, and it's not practical to sign another 12-month lease at this point in time.

My $0.02.