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On pins and needles!

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Anonymous
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On pins and needles!

I'm currently waiting on a pre-approval to come back from underwriting. The LO said we should know by next week. I haven't had a hard time getting a pre-approval, but this LO is working with my rental history to try to prove to the underwriter that we can afford a larger loan. He said he feels pretty optimistic about it; I've been able to get him all of the documentation he's requested and our landlords said they'd give us a good reference...plus we have canceled rent checks to back us up.

 

Problem is, we went and looked at a house last night (we've seen 3 total now) and it is honestly perfect for my family. It was a foreclosure and the price dropped last week by $10,000. It needs a minimal amount of TLC but has a great deal of potential. My realtor agreed that it will not be on the market long at the price it's at. We know we want to make an offer, but the seller (a bank) requires a pre-approval letter with the earnest money. I'm going to call my LO this morning to see if there's any kind of letter we can get that would work, but I'm not counting on it...I just don't want to lose this house! 

Message 1 of 5
4 REPLIES 4
Anonymous
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Re: On pins and needles!

Well, we're making an offer tomorrow using just the pre-approval. We won't hear back about the underwriting process until next week, so here's hoping. I'm very nervous. I have a great gut feeling about the house and the affordability of the house, but the financing is unpredictable. Here's hoping things work out. I suppose whatever happens is meant to be.
Message 2 of 5
Anonymous
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Re: On pins and needles!

Sounds great -- I'll be crossing my fingers for you!!

And BTW, your "watchword" should be "Financing Contingency." In your offer, there will be a section devoted to this topic. You need one. All it means is that if you can't get financing (or if the only rate you can get is too high), you're cleared out of the deal and you get your Earnest Money back.

Don't forget to insist on it.
Message 3 of 5
DallasLoanGuy
Super Contributor

Re: On pins and needles!

Is this a manual underwrite?

Could the loan officer not get you approved thru automated underwriting?

Lenders do not 'underwrite' loans until you are under contract..... but, sometimes, will seek underwriter opinions for special circumstances.

 

 

Retired Lender
Message 4 of 5
Anonymous
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Re: On pins and needles!

Automated underwriting puts us at a lower loan amount, so the LO wanted to put it through underwriting with non-traditional credit verifications. He said he's had some success with FHA looking at rental history and approving a higher amount. We're paying a lot more now for rent than the automated underwriting says we can afford. Does this all sound normal to you? I'm liking my LO but I plan to call some others tomorrow that are based in my county. My realtor told me today that if we go through a local lender, we're automatically approved for a down payment assistance grant, which would be great because we could leave the money we have in savings there as a cushion. But we'll see.
Message 5 of 5
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