My husband and I are trying to get preapproved for a mortgage. Initially our loan officer said that every looked good, but then he said he was having a hard time getting it through automatic underwriting because of some issues on my husbands credit report.
We both have around a 650-660 credit score. My husband had several collections about 5 years ago, they are all medical bills from one incident. He also had about 1.5 years of late payments on an auto loan. He was making a payment every month at that time, but because he was a payment behind they counted the payment he would make as last months payment and marked the current month late again.
Our loan officer asked us to write a letter of explaination for those things, which we did and he is trying to get it approved through manual underwriting. I am just wondering what anyone things our chances of getting through are. We make a little more than 50K per year. We have a DTI of 23%. We are hoping to purchase something in the $130-$140 range. Our loan officer has just said that he can't guarantee approval but will do his best. I am not hopeful, but I do wonder whether he would go through all of this trouble with us if there was no chance...
The qualifications for the loan we applied for were 620 or better score, income less than $82k, and we could not be purchasing a home for more than $250k.
