Offer accepted...what to expect during this process..advice needed

[Shinoga]

Hello,

I am looking for advice from experts regarding the process. We are slated to close 9/4 on a $ 199,000 mortgage with 5% down conventional. I was wondering what we can expect. Our scores are 710 each, very low CC debt. Income is $ 95k for both We already submitted ouyr tax returns,W2's , recent paystubs and bank statements. We do not have any cash deposits or any other deposits other than our paychecks within the past 2 months.  What are things that may be a problem during underwriting and closing. We would like to stay on top of things. Thanks for all the advice.

[Shinoga]

anyone?

[AGingrich]

I'm no expert, but I've learned SO much in my own experience recently, that I could probably offer some guidance.

First, calculate your DTI ratios. I'm sure your combined incomes are more than sufficient, but add up all monthly debt payments plus the amount of desired mortgage (with estimated taxes, mortgage insurance, also known as PITI), then divide that by your combined monthly income. This is your Debt To Income (DTI). With your credit scores, as long as this number looks good (under 36% is really safe, but some lenders will do conventionals up to 43% and 45%), this is probably all you need to worry about.

Your loan officer has probably already submitted your information into Desktop Underwriting (DU), an automated system, so feel free to call them and ask if you came back clean. If you did, they'll soon order an appraisal on the house, and if that checks out, you should get approval with some conditions (like prove this, show this) or just outright be clear to close.

Then... you close! Good luck!

[mom22sonz]

Good luck with everything!

[Shinoga]

We are at 26% DTI, I think everything is a go except I'm woprried about Underwriting, What are potential red flags to them?

[AGingrich]

If you're 26% DTI, you're more than good to go. Red flags will be late payment history on credit report, overdraft fees on checking account statements, any liens against you from the past. Also, if any money was gifted, you're going to need it to be seasoned two months or have an attached note with it demonstrating that it's a gift, along with where it came from.

Be sure to keep all your pay stubs and income checks you collect until closing as well, so you can provide a clean paper trail.

If I were in your situation, I would be more than confident.

[Shinoga]

We have no over drafts or late payments on our credit report. No deposits other than our paychecks besides a $30.00 chase quickpay from my friend for concert tickets which I have a receipt for.

[Shinoga]

Also Guaranteed Rate is our lender