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Should I be nervous? First Time Buyer.

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Anonymous
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Should I be nervous? First Time Buyer.

First time home buyer but purchasing duplex in Illinois when I live in California so considered second home. I rent out here. Pre approval thru Bank.  I am asking bank for purchase price plus a little over 10k in construction.  Needs roof.  Appraisal came back today for 45k if roof fixed, I am buying prop for 22k.  This is small town Illinois so prices are low (not like her in Cali). My credit score is 720, I am paying 20% down (required by my bank since 2nd home and mutli family not single family)  NO bad debt, No bankrupsties, nothing negative. I have 6k in savings and my mother who will eventually live in half is gifting me rest of downpayment/closing costs.  I am still totally nervous, should i be giving myself ulcers or does everything look good. ONe thing I know they will see in my bank account is i took a loan against my 401k (which thru my company i can do with a very low interest and I dont pay penalities). I know good ole Suze Orman says not to but I paid off a credit card with it that was 16% apr. This also brought my credit score up 20 points. Anyway so the deposit of that 20k is in my checking statement.  I make average money, (45-65 range). Been at my job over 5 years. No other loans except about 6k in credit card @ 0% percent interest that i paid off some medical bills with. Own my cars outright. 

 

So my questions

Does the 401k loan matter at all. It is my money to begin with and I know you can use 401k for buying a home so should that matter?

What other hick-ups might the underwriter have?

I know underwriters sometimes ask for things to be fixed before loan is approved but can they do that if the construction part is built into my loan. 

I did send the LO the list of the work and cost of work I planned on doing with the construction portion of loan. I know she shared this with appraiser because noted in appraisal. 

Also what now, how long am i going to have this queazy gut feeling before i hear back? 

Also we started with a payroll company that brings us under their umbrella tax id wise so last year i got a w2 from them and from my company even though I never changed jobs. Will that redflag anything? 

 

Any advice, thoughts, or Holy crud girl have a drink comments appreciated.  

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frugalQ
Valued Contributor

Re: Should I be nervous? First Time Buyer.

as long as you can source the deposit (via cancelled check or withdrawl paperwork from your investment firm), you shouldn't have a problem.

 

Only thing I can think of is the reserve requirement....if there is one.  Most people who have reserve requirements use their 401k balance to cover it.  You will need to confirm if your current 401k balance will cover it.

 

good luck!!

AmEx Green NPSL | Amex BCP 16K | Citi Simplicity 10k | Discover IT 9K | Chase Slate 7.5K | Amex Hilton HHonors Surpass 7K | Capital One QuickSilver 6K | Home Depot 5k | Chase Freedom 4.5K | LOC 2.5K
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