02-20-2014 08:37 AM
Are you at the max range of the DTI limits? In a case where accounts are open but have a zero balance an Underwriter can ask that they be closed. It is rare but does happen. They look at all of the available credit as an issue since any use of it would put you over the limits for DTI. Sorry this is happening to you -
02-20-2014 12:54 PM
Ok so lender emailed me today and said I basically needed to close every single revoving account, I can still maintain the car lease. But he said anything thats got a 0 balance close, and anything with a balance, pay in full and then close. IM only allowed to keep one open (my oldest trade line which is target) , now he said after I close I can open them back up immediatly. But why would he require this? According to the lender before I even went under contract I was approved with no conditions (the lender did say they may want some closed) but ALL of them? They said either close the accounts or put down 10% more but they dont reccommend putting more down as "money is cheap, and its better to have your money grow in your stock market than sitting on a house" IM honestly just going to put 10% more down at this point. But I only had less than 5k accross all my accounts, he never gave me a reason other than "the accounts are exposure and must be closed", but then the next sentence "but you can open them back up after closing if you wish". So wth guys?
Your lender is selling that loan to Wells Fargo and is therefore underwriting your file to WF's standards. Not an uncommon occurance.
02-20-2014 04:30 PM
im 38% DTI according to the lender if we include property tax and insurance on my rentals, lease payment, minumum card payments, and new mortgage. So I guess you would call that borderline (I think 40% is the max). The mortgage broker I was working with before this guy said "we have more leanient standards than most banks, but when we go to sell the loan, it looks better to not have these open" I really dont give a damn how I look when they said I was approved and they are trying to sell the mortgage. but I guess its the difference between approval or not approval. I have been given a third option and im consitering it, but may just go still with the 30% down isntead of 20%. The third option is I put down 5% more, then I was instructed to buy out my lease (so now I own the car outright) Pay off all revolving balances, and close every trade line but my Amex charge cards, Largest Chase, Largest Citi, and USAA. Im trying to see if he will let me keep penfed as well. But might be for the best. All the cards that I close on my credit will appear as "closed by consumor request" which hopefully after my CR recovers I can ask for limit increases across the board.
Its really is more than I wanted to mortgage. But its a house that we got in a bidding war on and we didnt want to loose the house before selling the rentals. Living in an 1800 sqft rental is quite a switch from what were used to (and dealing with showings). So we did all we could to make it work as quickly as possible. We have been out of our old house since the 20th of december and the CEO of the household is not happy.
02-20-2014 04:49 PM
02-20-2014 05:27 PM - edited 02-20-2014 05:28 PM
I agree with the masses but also dont want to loose the house over it. Fraud or not if they are (hopefully) lending the money im in a situation that I need them to still do that, if even for one day. I doubt I would be granted an extention again, we were supposed to close on the 14th but the appraisal took longer than expected. So for purposes of right now make this happen, Im going to put an extra 10% down, then I dont have to touch my trade lines. Then the next week go seek out other lenders to do a refinance.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.