Pre-Approved for FHA, >580 FICO, Will we be able to close on time?

[XAVIERSMAMA]

Have you tried posting in the "Rebuilding Your Credit" forum?  You might get a quicker response on the contact info.

[hopeful5]

I don't have my credit stuff here with me today to know for sure, but it sounds like CitiBank maybe?  They were on my DH reports for a old Radioshack account.

[Anonymous]

thanks for the info!  I finally contacted them--they have no record of this debt.  FABULOUS. I guess I will ask my LO what to do...hubby says he thinks it's from an old Sprint phone acct from 2000.

[Anonymous]

Well, we are very unhappy with our loan officer.  Now we're being told a completely different story and he doesn't feel that we will be approved, even after we paid our collections and judgment.  He also lied to us about a couple of things, definitely misled us, and we're considering talking to his supervisor. 

If anyone has any helpful information about a broker/lender that can help us asap, please let me know.  Thank you.

[Anonymous]

Your LO should not have made you pay the collections until he knew a deal was going to be done.  Ideally he could have done this at close.  Unfortunately, now that they are paid, there is a very good chance your FICO will drop even more and will make it even harder for you to re-start the process with a new bank.  You can take it to a supervisor, but the chance is it will not change anything besides maybe reporting his behavior.  As far as your file goes, a supervisor is not going to be able to overlook anything that has changed or anything in the file that is below their lending standards.  Also, he/she will not be able to override a UQ if it has gotten that far.

A couple things may have happened.

Either:

The LO was anxious to bring in sales and was hoping that either you would take care of some stuff (credit wise) or the UW would overlook obvious issues

The LO is not keeping up to date with changes in the market ans what they can and cannot got done (this changes all the time)

Or the lender or bank changed their lending restricions and/or policies very recently (again, this happens all the time in this market), and you got caught in the changes and they can not fund you now.

Either way it is bad.  This is why most of us who have been around here awhile tend to kind of give warning when people say they got approved at 580 (or anything under 620).  In our experience, most of these "approvals" fall through and end up not happening (not all though)

[rockymtngrl]

With scores that low if I were you I would be talking with a broker and not a bank. But like Mickie has said by paying your collections and judgement the damage may already be done and it may be too late if your scores are dropping even lower.

[DeeWill]

So sorry to hear the bad news! Did you get anything in writing saying that you were approved and these were the stipulations? The reason I asked is because last year we had an LO tell us we were approved, sent us stuff in writing, official from the company and everything. We were under contract, had an appraisal and an inspection just to discover that we were never really approved.  The LO had a automated approval but it had never gone to underwriting however she was conveniently emailing me stuff as if it was okay.  Turns out she had falsified some things in the hopes that it would get through and it didn't.  She even went as far as submitting it to different LO's she knew which was definitely not ethical, especially since we did not know she was doing it.  Our issue was DTI, not credit and needless to say we lost our dream home, our earnest money and all the money we put out on the appraisal. However, since I had everything in writing, the letters, emails, everything I reported the LO and the company to the BBB and the owner reimbursed us our out of pocket lost and fired the LO which I think was what was deserved.  Hope your LO isn't that bad but I would definitely take the next step and just talk to the supervisor to see where the LO got his info from.  I haven't seen a 580 score get approved at all since the subprime days although anything is possible. Good luck!

[Anonymous]

This is exactly the type of thing I am nervous about. Because my LO got fired (of course, I don't know why) I'm worried that he was doing something unethical too. I'm hoping to hear back from UW today or tomorrow... but can't help thinking something is going to go wrong. After paying for inspection, appraisal, etc. I'm looking at being out a lot of money (for me) with nothing to show if I can't get the approval. Supposed to close next week, so constant worry. I will be so relieved when this is over! Whether it happens or not.

[DeeWill]

I know you are dealing with the waiting game but don't be discouraged, if it's meant to be it will be! Good luck again...keep us posted