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Regular Contributor
Posts: 146
Registered: ‎12-04-2012
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Under contract and score dropped - advice please!

My husband and I are under contract to have a new home built.  We were pre-qualified before signing the contract and our contingency for financing was up 2 days ago.  Our mortgage lady went to pull credit to get everything lined up on Monday and WHAM!  My husband missed a student loan payment while he was traveling overseas for nearly a month, it had not yet been reported when they pulled for pre-qualification.

 

We already have an FHA loan (we are planning on renting out our existing home), so we have to go conventional.  We also have to have PMI because we don't have enough down payment.  His score is now too low to get the score where it needs to be for PMI.  Once we have the statement that the account is current I am hoping that improves it a little.  They extended our contingency for another 2 weeks but at this point I don't know if there is any point.  I have called and pleaded and begged with numerous supervisors and no one will help.  I have sent GW letters to several email addresses and via their website.

 

Does anyone know, on a conventional loan will an underwriter even look at a file without the proper credit score, even it it is close and with a letter of explanation?  I am emailing and calling the mortgage broker like a mad woman and she is just not giving me the time of day :smileysad:

Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
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Re: Under contract and score dropped - advice please!

Yeah its over

 

2 big problems

 

1st - I dont see an underwriter approving you with a late that just happened. Its gonna be a tough one to explain.

 

2nd - The lender will need to insure the loan, and they have their own guidelines. Typically you need a minimum of a 680, or a 660 if you backend ratio is very very low.

Member
Posts: 9
Registered: ‎12-04-2012
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Re: Under contract and score dropped - advice please!

I have a student loan through US Dept of Education - just a straight student loan. A few years ago I got in a situation where I missed a couple payments. I called to try to take care of it, and they offered me something called a "forebearance" - basically they took what I hadnt paid and stuck it on the loan, and I just made my payments as normal. When they did that, they did it effective when I FIRST missed the payment though, and reported it to the credit bureaus as such - clearing up the lates. Now I wasnt checking my credit then like I do now, so I don't know how long it took - but if they would give you one of those forebearances, and then send you or fax you a letter, saying they did? I dunno - maybe it'd be something? Or maybe your particular loan doesnt allow that? I have no idea - just thought I'd chime in.
Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
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Re: Under contract and score dropped - advice please!

If that would work, that would be very cool.

Member
Posts: 9
Registered: ‎12-04-2012
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Re: Under contract and score dropped - advice please!

Yeah, when I called - at least for MINE, back in the day - when I suggested that I just pay what was past due, they OFFERED the forebearance - it was like, their "go to" response I guess. I'm actually surprised that the OP didn't get that option - unless not all student loans etc work the same.

 

OP - try to call them back maybe and see if they'll do a "forebearance" maybe?

Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
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Re: Under contract and score dropped - advice please!

Wonder what the underwriter would think about it.

Regular Contributor
Posts: 146
Registered: ‎12-04-2012
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Re: Under contract and score dropped - advice please!

I am not sure that we would really qualify for a forebearance though.  My husband was sent on a last minute overseas trip for 3+ weeks and had very limited internet access, or free time to even think about anything other than what he was working on, and made the payment when he got home.  I don't think that would qualify as a hardship really, heh.  Maybe it wouldn't hurt to try though...

 

Our mortgage loan lady is not telling us all hope is gone though.  She has asked us to send in the statement showing the account is current and $0 balance due.  We have that now, and the stupid letter now also says we are pre-paid through February so I am not entirely convinced the late payment reporting is completely accurate.

 

Sigh.  This sucks so bad.  I am so sad.  I wish they would just tell me to give up hope so I can move on. :smileysad:

Regular Contributor
Posts: 146
Registered: ‎12-04-2012
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Re: Under contract and score dropped - advice please!

Oh, and I am pretty sure he is currently at 650 after the late payment hit.  Maybe once the report shows the account is current it will help a little?

 

The builder and the lender are the same company as well...

Regular Contributor
Posts: 118
Registered: ‎08-13-2012
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Re: Under contract and score dropped - advice please!

Don't put the loans in forbearance. It was a big issue with my mortgage. I had to take my loans out of forbearance before anyone would insure the loan. Almost killed mine. Don't do it.

Starting scores 2/27/12 TU 605 EX 576 EQ 560
Current scores lender pull 9/6/12 TU 663 EX 629 EQ 645
Closed on our first home 10/26/2012!
Senior Contributor
Posts: 3,446
Registered: ‎11-30-2007
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Re: Under contract and score dropped - advice please!

Is your builder Putle, by Chance? 

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