@Anonymous wrote:
Long story ahead...
Okay so my we were preapproved April 12th, 2017 (lender calls it prequalification but states as they have verified credit report my mid score 761 and my husbands mid score 796 (verified by the lender after pulling our credit), signigificant savings to cover the 3% down payment/closing costs if necessary, and have cash reserves after the fact, w2-s, last 3 years tax returns, income, and knowing our rent payment we have been paying for the past 7 years we are 100% preapproved) for a 325k 97% LTV home loan this month. My biggest fear at this point in once we find a house something coming up in underwriting us not being fully 100% approved. We have no bankruptcy's, no late payments on any of our accounts, and no negative marks what so ever. We both have been at our current places of employment for over the two year min required. We use our credit cards religiously every month but combined have a backend DTI of 11 % this includes min monthly payments on credit cards and a car loan (roughly $ 863.00/month combined). We've never purchased a home before EVER. My lender advises we are a slam dunk for a loan.
We found a home on 6/19/17 and the sellers accepted our offer at $ 271,900.00. Inspection passed 6/24/17 and we started the appraisal process. We were approved with the following conditions on 7/6/17 on a LTV97 Conventional Loan for 30 years :
1. Letter of Explanation - Address mis-match alert on credit report-- Sent 7/7/17
2. Credit Explanation letter completed and signed (attached)-- Sent 7/7/17
3. Correct Application B2 - Address of employer location - where she works, not corporate. Updated 7/7/17
4. @Anonymous Insurance is required @ 35% -
5. Most recent paystubs w/in 30 days of closing for all borrowers - Sent and updated as we recieve them
6. Source all deposits over 50% of qualifying income - There are none
7. 2 months most recent bank statements - evidencing sufficient funds to close --Sent 7/7/17
8. Cancelled EMD Check - w/ statement showing withdrawal and 2 prior statements-- Sent 7/7/17
9. Appraisal form 1004 - w/ license, E&O, HVCC, and paid invoice. -- Completed and came back 7/10/17 at a lower price 255K sellers agreed to lower price
10. Title Clearance - with survey and CO -- lender recieved 7/11/17 ALL clear
11. Hazard Insurance - w/ paid receipt, must evidence replacement cost coverage -- Already in the works, received and estimate from the Insurance company in writing and they are awaiting update on appraisal info from lender.
House appraised for $ 255,000.00 on 7/10/17. The sellers have accepted our new offer of $255,000.00 as of today 7/17/17 on a LTV 97 Conventional Loan. Our min payment is going to be $ 1690.89. this includes our PMI, Insurance, taxes/fees.
My min payments upon time of original report for CC and Car were $ 863.00 total for min payments. They currently now are $ 813.00. I shared this infomation with my LO and he said dont go out and buy a car or a boat and you're okay with your DTI. My calculation with the new DTI amount would be 32.1% on the back end and 21.68% on the front end. I've managed to pay down 2 of the credit cards that recently showed large amounts to half of the amounts. I however, have also used 2 other cards that did not show up on my report that they pulled in April 2017. ALL EXISTING NOT NEWLY OPENED My credit profile has changed when it comes to accounts being used however because its not the same accounts showing that did on the original credit report/loan application. They advised they check credit and update it 10 days prior to closing. However, we have no idea when closing is at this point as the new offer was just accepted today.
Do you think this will hurt us any with closing the loan?
No it will not hurt closing of the loan. The only thing I foresee that your LO will ask for your documentation for is IF the amount you paid down will affect your "cash to close" and is more than 50% of the qualifying income. They will have to source where the money came from if it affects your cash to close
Licensed in IL
