Reply
Valued Contributor
BrianB_The_Loan_Professor
Posts: 1,381
Registered: ‎07-29-2008
0

Re: Thrown a huge curve ball today.

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 - 

 

Brian

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Brian B The Loan Professor
Mortgage Banker Lending in all 50 states -
Valued Contributor
ezdriver
Posts: 1,916
Registered: ‎08-24-2013
0

Re: Thrown a huge curve ball today.


awp317 wrote:

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.



Starting Score: 618
Scores on 10/9/13: EFX 652, XPN 669, TUC 662
Scores on 3/17/14: EFX 649, XPN 677, TUC 681
Goal Score: 720 ALL


Take the myFICO Fitness Challenge
Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
0

Re: Thrown a huge curve ball today.

My loan was sold to Wells and my DTI was border line.. I didnt hear crap about my credit cards.. 50 something backend DTI FHA.

Frequent Contributor
awp317
Posts: 257
Registered: ‎08-18-2013
0

Re: Thrown a huge curve ball today.

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. 

Amex Platinum NPSL (with option to carry) I Citi Prestige World E 35k I USAA World MasterCard 35K I Chase Sapphire Preferred 25k I Barclays Arrival World Mc 25k I Barclays Arrival+ World E 25k I Southwest Chase 24K I PenFed Visa Sig 23k I Target Visa 12k I Chase Freedom 10,100 I Discover IT 10k I Lowes 42k
Edward Jones LOC 590k (limit varies depending on market) @3.49 I BB&T HELOC 250k @ 3.25
Chase Jumbo Mortgage Approved@ 4.6% 3/10/14!!!
Valued Contributor
madmann26
Posts: 1,453
Registered: ‎08-30-2012
0

Re: Thrown a huge curve ball today.

Closing your revolvers will cause your score to tank since your util will appear to be bad with the charge cards since they don't report a CL.

These people are frauds and idiots. Listen to the masses and walk away now, please.

Starting Score: EQ 511 TU 552 EX 545 8/29/2012
Current Score: TU 712|EQ 690|EXP 723 (FICO)
What's in my wallet? Cap1 PLAT AU $4.25k; Cap1 QS AU $2k; NFCU Siggy $45k; $5k WalMart MC; CFNA Firestone $1.8k; Amazon $3k; NFCU Cash Rewards $22K; AMEX BCE $21k; NavCheck $15k; Lowe's $10k; Citi DP $6.3k; AMEX ED $8.5k; Chase Freedom $4.5k
Goal Score: 700 across the board.
Take the FICO Fitness Challenge
My Journey
Frequent Contributor
Peter1142
Posts: 348
Registered: ‎08-17-2013
0

Re: Thrown a huge curve ball today.

38% DTI is not borderline.

Something sounds extremely fishy and I would not oblige. Closing the accounts could tank your score in that you won't qualify at all anymore.
Frequent Contributor
awp317
Posts: 257
Registered: ‎08-18-2013
0

Re: Thrown a huge curve ball today.

[ Edited ]

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. 

Amex Platinum NPSL (with option to carry) I Citi Prestige World E 35k I USAA World MasterCard 35K I Chase Sapphire Preferred 25k I Barclays Arrival World Mc 25k I Barclays Arrival+ World E 25k I Southwest Chase 24K I PenFed Visa Sig 23k I Target Visa 12k I Chase Freedom 10,100 I Discover IT 10k I Lowes 42k
Edward Jones LOC 590k (limit varies depending on market) @3.49 I BB&T HELOC 250k @ 3.25
Chase Jumbo Mortgage Approved@ 4.6% 3/10/14!!!

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}