We started cleaning up our scores a couple of years ago. I went from 650s to 750s. My husband went from low 700s to high 700s. His mortgage mid score is 752, mine is 742. We met with two banks in the past, but the brokers were giving us a hard time with his business expenses (on his report but 100% for and paid for by business.).
Decided to take the plunge BC I'm 6 months pregnant and we have no space. Were recommended to a local mortgage banker by dozens of friends and family. He is GREAT.
10/7 - met mortgage broker and were preapproved for 400,000 mortgage (he didn't pull our credit reports yet but went off our stated expenses and scores, which we were conservative with.). He emailed letter to our realtor.
10/7 - 10/31 - looked for houses fitting our needs. Not many in our price range.
10/31 - looked at 4 houses. One was perfect but above our price range (450). Asked mortgage broker to pull credit and see what our preapproval was - 425,000. He issued new letter. Made verbal offer for 400,000 through realtor.
1/1 - their realtor said put it in writing and offer full down payment up front (otherwise she knew they wouldn't even consider such a low offer.). Their realtors father just died so she was having a rough week planning wake and funeral. We put it in writing.
11/3 - got call from my realtor. They were insulted and countered w 445. She told their realtor 425 firm - can't go any higher. Their realtor said not to expect answer for a few days (wake was that night n funeral next day). My dad went to wake that night (their realtor has brokered 5 house sales n purchases for him.). Called me just to say he had seen their realtor. 5 minutes later my realtor called. Offer accepted!!!!!! The fact they've already moved definitely helped.
11/4 - transferred money from savings to prepare for contract signing and payment of down payment.
11/5 - hired real estate attorney.
11/6 - signed and submitted loan documents to lender. 3.75% no points 3.5% down
11/7 - inspection!!!!
Will further update timeline as we progress.
11/7 - at the inspection, the inspector showed us a very dire looking foundation and crumbling supports in the crawl space. Electricity wiring was a mess. We thought we could try to find a way to make it work, though. Later that night inspector told us he would run.
11/8 - my dad called me while we were at a kids party and said we had to come look at an open house. 439 asking price for craftsman bungalow - 3br and 1full + 2 1/2baths. WOW. it was gorgeous. Immediately offered 400 through our realtor. They came back w 427 "won't go any lower". We countered w 420 "we can't go higher." OFFER ACCEPTED.
11/9 - withdrew offer on first house and have them inspection report. Felt badly for them. Happy it's not our headache.
11/10 - inspection on 2nd house is flawless. No issues to speak of. Built solid in 1922. Wow. Met banker who ran numbers again and said we are good.
11/14 -. We signed the contract. Not yet signed by sellers. submitted gift letter to lender (check not given or deposited yet - just letter.)
11/16 - Mortgage banker ordered appraisal. We signed and submitted all updated loan documents.
11/17 - Sellers have now both signed contract.
11/19 - House listing removed from MLS today.
11/24 - received email from loan processor asking for long list of docs/info (many of which we already submitted or impossible to send her, ie. bank statements for Nov. not yet generated.) Sent her what we could and will continue to do so. Noticed she miscalculated closing costs (over by 14 THOUSAND, as she included half the down payment we already paid and Upfront PMI, which is rolled into loan.)
11/25 - Appraisal completed today. Expecting results by next week.
11/28 - received phone call from our real estate agent. She spoke to banker and attorney. Attorney ordered titles. Everyone is optimistic we will be in before Christmas.
Starting Score: 660
It's 6250 more we'd have to scrape up and we are short on time. We'd saved up the 15000 down payment and 20,000 closing costs between June and now, so 3.5% was even a struggle. We made it just under the wire. Are conventional rates much better or are there other benefits?
***adding - it is also due to high DTI ratio. My husband owns his own business and some debts are on our reports.
Our 1.75% is rolled into loan. I believe our DTI was the main issue.
Also, I hadn't realized FHA won't cancel pmi after you have 20% equity in home. That sucks.
Finally we had out inspection but will update later in week as I know more. Some big issues (mold n structural damage) came up.
Also, I hadn't realized FHA won't cancel pmi after you have 20% equity in home. That sucks.
Finally we had out inspection but will update later in week as I know more. Some big issues (mold n structural damage) came up.