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Valued Contributor
tooleman694
Posts: 2,296
Registered: ‎08-25-2011

Re: New Home mortgage after BK

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

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012

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
tooleman694
Posts: 2,296
Registered: ‎08-25-2011

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
sprint100
Posts: 12
Registered: ‎11-28-2007

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
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012

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
chasmith
Posts: 1,062
Registered: ‎05-26-2010

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
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