Reply
Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
0

Re: New Home mortgage after BK

I would think you would need a DU approval before you can move forward.

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0

Re: New Home mortgage after BK

What does DU stand for?

OP, most preapprovals are only good for 120 days. Not sure how that works if you are building a house that you can't close on until much later. I would check what the builder's requirements are in terms of what they need as a warm fuzzy before they will start to build your home. I'm guessing you can sign a contract even though you are not approved to close?
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
0

Re: New Home mortgage after BK

DU = Desktop Underwriter

 

Its the tool the loan officers use to get your pre-approval.

 

They plug in all of your info hit the button and you get your approval.

Established Member
Posts: 12
Registered: ‎11-28-2007
0

Re: New Home mortgage after BK

MovingForward_2012, my plan is to go apply around that 3 month mark. My main concern is seeing something we like and missing out on it because of a few months.

 

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0

Re: New Home mortgage after BK

Ah yes! I know what that is now. They did that for me on 1/5. And now it is in underwriting. I'm not sure OP if the DU will come back okay because of the BK. When I did a prequalify check in July, and they just ran my credit and said my score qualified but my BK wasn't discharged long enough yet. You need a preapproval letter to make an offer and when I got mines, they did a DU for that. Also if they did a DU early, I'm not sure if it would come back preapproved or not??? I do know there is a housing shortage in Denver Metro and they are putting up houses as fast as they can so said my builder. And he also said there is a shortage of materials and when that happens, prices go up and that additional cost is passed onto a buyer.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
Posts: 1,063
Registered: ‎05-26-2010
0

Re: New Home mortgage after BK

I never found an FHA lender who would take an application before two years from BK7 discharge, even the one who goes to seminars on recovering from BK...

 

I understand it's from filing for BK13 but haven't been there so can't say for sure.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
Take the FICO Fitness Challenge
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.