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mst2009
Posts: 173
Registered: ‎11-01-2010
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OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

Ok, now the work begins!!!  Still removing "consumer disputes" and keeping a close eye on ALL my bills, making ALL payments on time!!!  Any other advice anyone is willing to share???  Oh I guess I should be looking as some property too....LOL!!!  I AM SO SCARED!!!  But I have an AWESOME LO....


Starting Score: TU 545 EQ 575 EX 581
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trying2rebuild
Posts: 6
Registered: ‎04-07-2011
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Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

Yay for you!!!  Have a wonderful time house shopping!

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mst2009
Posts: 173
Registered: ‎11-01-2010
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Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

YEAH!!!!!!  LOL!!! I have just found one and I am making an offer TOMORROW!!!!  LOL!!!  I saw this house a year ago, it went offf the market twice and hit the market again March 23rd...there are two other offers it is bank owned but the bank apparently isn't too impress with the previous offers...so my offer will knock their socks off!!!!  Thanks so much!!!


Starting Score: TU 545 EQ 575 EX 581
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mauve
Posts: 2,487
Registered: ‎02-18-2010
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Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

I'd be conservative - I've had the nightmare of having to re-negotiate price with Freddie Mac because my appraisal came in too low for my financing to work.  I don't know if your house is one that needs work, but mine is (missing kitchen and bathrooms, garage needs structural repairs, etc).  Freddie Mac apparently doesn't quite get that the after-improved value is the one you have to compare to the appraisal price, so they didn't even understand the problem when it occurred.  I probably could have gotten the house despite the other offers if I had offered lower than I did, too. 


Starting Score: EQ 583 TU04 619 EX 592 (lender pull) 2010
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mst2009
Posts: 173
Registered: ‎11-01-2010
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Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

I have been considering that!  Considering the size of the home and the amount of property that is included, the price is really low, It needs work but every house we have seen needs work, I don't believe there is any thing as major as foundation or structure problems (but you won't know until inspection) but I do know it will need a new or repaired septic.  The county offers help for individuals within certain income levels with repair or replacement septic issues, they also offer other help with repairs to homes as well...I see my agent today and we will discuss it even more...sorry to hear how hard thing have been for you, are you looking for another property??  I was hoping this house was Freddie Mac..they offer great financing and the homepath program for repairs and redecorating.


Starting Score: TU 545 EQ 575 EX 581
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mauve
Posts: 2,487
Registered: ‎02-18-2010
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Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

Everything is working out - I'm hoping to close by the end of April.  My house appraised for $28k below the loan amount I was intending on taking out and about $60k below what I expected it to.  We fought the appraisal and got it up another $8k.  Still had to ask for the price reduction.  Just saying, the appraisal can surprise you so be  conservative in your offer.


Starting Score: EQ 583 TU04 619 EX 592 (lender pull) 2010
Previous High Score: EQ 700 TU04 712 EX 726
Current Score: EQ 740 TU(Discover) 750 EX(AMEX) 747
Goal Score: 740+ all around


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mst2009
Posts: 173
Registered: ‎11-01-2010
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Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

Well I went in and it was really interesting when we spoke to the selling agent she was honest about the property....it needs 55k worth of repairs...now we know why it keeps going in and out of the market she also told my realtor that they are looking for 203k or cash payouts...this poor lady seems so exasperated over this house it has been on the market for over a year and I am sure she really wants to unload this house so do I get a 203k loan??  I have been doing some research but I will not be able to particiapte in the first time buyers program using a 203k, so I would have to use my funds that I was going to use for moving expenses and new appliances...I am not sure if I am going to stick with this house but I may have to find something else...hmmm...I know with the work on this house that needs to be done...the appraisal will be LOW....


Starting Score: TU 545 EQ 575 EX 581
Current Score: EQ 699 TU 670 EX 679
Goal Score: 750


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Valued Contributor
mauve
Posts: 2,487
Registered: ‎02-18-2010
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Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

I responded to your other post about the 203k, but here's the thing, at least here:  I got an FHA appraisal, which any FHA buyer will see for the next 4 months.  It will come up with the as-improved price (assuming the improvements are things that will make the property equivalent / saleable).  The lending limit will be the *LOWER* of the sales price plus the improvements (which will include fees / permits / a % contingency - up to 20%, probably at least 10% / etc) OR 110% of the as-improved value.  So if you get a contract price of 90k and the appraisal comes in at 120k, you will be restricted by the LOWER amount:  120k +10% = 132k or 90k +55k+10% = 150.5k  - so you'd have to come up with almost 18k IN ADDITION to your 3.5% down and closing costs. 

 



Starting Score: EQ 583 TU04 619 EX 592 (lender pull) 2010
Previous High Score: EQ 700 TU04 712 EX 726
Current Score: EQ 740 TU(Discover) 750 EX(AMEX) 747
Goal Score: 740+ all around


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Regular Contributor
mst2009
Posts: 173
Registered: ‎11-01-2010
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Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

Wow where is the deal in that???  The house is on the market for 139K the selling reator says there is 50k in repairs!!!  It is REO and they are not working with anyone with conventional or FHA loans...they only want FHA 203k or cash...this is why the other two offers are just sitting there on the banks desk...the house is huge with 30 acres of land, I really bslieve that the price is marked pretty close to appraisal but with the work that needs to be done adding 50k to the mortgage is also going to raise the downpayment and also the monthly payment.  I have to raise an additional 4k before even getting pre approval with Wells Fargo....there are so many forclosures and short sales that need work!!!  Bank owned homes are hard to get because they don't want to spend the money to do the work...it is tough!!!!  I am keeping my options open and still looking....


Starting Score: TU 545 EQ 575 EX 581
Current Score: EQ 699 TU 670 EX 679
Goal Score: 750


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Regular Contributor
PhillyGuy215
Posts: 165
Registered: ‎03-22-2009
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Re: OMG!!!! I GOT MY FHA PRE-APPROVAL!!!!!

[ Edited ]

I wouldn't sweat the "Consumer Disputes"... I had a ton of them on my CRs when I did my mortgage.   I was an FHA with scores in the 780-800 range.   The underwriter didn't care about them or ask why I had a lot of tradelines in dispute status.

 

 

Above 640 is the first hurdle, then no recent late pays and no UNPAID collections is the next hurdle, and no recent collections paid or unpaid.   Then the final one is the questions from the underwriter.  Don't challenge whatever questions they bring up during underwriting, just supply all the documentation you can.   When you answer their questions just be plain about the answers.  At settlement they will print your answers out on a form that you will be signing.

 

BTW what I learned, you can NEVER supply enough documentation for a mortgage app.   The more paper you supply them the happier they will be.   I dumped about 2" of paper from a Quicken report in their lap when they asked about a dozen or so transactions, and why there were all these transfers whizzing around between accounts.

 

 

Edit: collecitons

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