Underwriter made me close 3 accounts

[anca21bi]

So I have been in underwriting, what seems like forever. I was conditionally approved, then approved, then suspended. I had a bunch of conditions I had to meet so I can be un-suspended. One of the conditions was closing three accounts, QVC at $500 cl, Credit One at $700 cl (which I didnt care for those accounts much) and Walmart, $1000 cl (which I will miss, I used Walmart quite a bit since I lived right down the road from one) all open and used repsonsibly for over a year. So I closed all the accounts. I still have a condition to pay off a collection balance at closing. There were like 20 conditions in all and I already had to extend once closing date, and the second closing date was Friday, which was the day all the conditions were met on my part. 

My question is, is this common, and what are my chances of my loan being denied after suspension? My loan officer said that once I meet all the conditions I will be approved but I have not heard anything or talked to her since about 5pm Friday. I will also be upset to close the accounts and not be able to proceed with the loan. I know the seller is antsy that the first closing date was missed.

I just need somewhere to vent a little, any feedback will be greatly appreciated.

[TRC_WA]

You should thank the person for having you close Credit One.

One of the worst CC lenders out there with ridiculous fees.

[Anonymous]

I am at the beginning stages of just trying to get a preapproval from a lender so i can THEN start looking for a house! but all this house underwriting stuff just gives me a headache LOL. This process (homebuying process) doesn't seem like an easy one. Anyway I would just be patient because you just spoke with them Friday? I would assume everything is going to work out. I have no mortgage lending experience or background. But maybe if your anything like me (Im an overthinker) your just worried about it. But it seems like they wouldn't make you do all that for no reason. Just hang in there!

**by the way I applied last week for a pre approval and I have to get my median score up 16points and my husband's median score up about 25 points QUICKLY so Im going to pay down some credit cards and get them under 50% usage and HOPE that increases it**

Did you get a pre approval? if so how did it go for you?

[Anonymous]

My underwriter made me close 4...Big O, Target, Walmart and Best Buy. I'm assuming because weren't actually credit cards but just store cards. I had no problem closing them, I was willing to do whatever they wanted for me just to be approved. After Im done with closing, I'm going to cancel my credit one. I hate that card but i needed it when i was rebuilding my credit after BK. good luck with your underwriting!

[DaveInAZ]

I bought my 1st house in my mid 20s (my Dad always told me renting was throwing $$$ out the window) and I'm now in my early 60s. I've closed on at least a dozen mortgages, and I have never once been told/asked to close any close any credit accounts to get approval. That's ridiculous & stupid - what matters (besides CS) is your DTI for the new mortgage and your overall DTI on all debt at closing.  They can't control what happens after closing- you could go re-open those accounts the day after closing, or go buy a new Porsche and get your DTI up to 90%.

I agree they did you a favor having you close Credit One - terrible predatory bottom feeder lender that sticks you with fees & high interest w/no grace period to PIF & avoid interest. But Walmart??? Especially with a $1k CL, you could rack up 99% usage and still only have a $25-35 min. payment. I also liked my Walmart card, it helped me rebuild my credit, but I've cut way back on using it, I get 1.5% cashback paying with my Cap One QS Sig Visa. I make small charges to keep Walmart active, but really the only thing store cards are good for is deferred interest for large purchases.

[frugalQ]

I don't get the whole closing cards thing either. But, underwriters know you are at their mercy since they wait until the 11th hour to even view your file.

[ezdriver]

---

@anca21bi wrote:

So I have been in underwriting, what seems like forever. I was conditionally approved, then approved, then suspended. I had a bunch of conditions I had to meet so I can be un-suspended. One of the conditions was closing three accounts, QVC at $500 cl, Credit One at $700 cl (which I didnt care for those accounts much) and Walmart, $1000 cl (which I will miss, I used Walmart quite a bit since I lived right down the road from one) all open and used repsonsibly for over a year. So I closed all the accounts. I still have a condition to pay off a collection balance at closing. There were like 20 conditions in all and I already had to extend once closing date, and the second closing date was Friday, which was the day all the conditions were met on my part. 

My question is, is this common, and what are my chances of my loan being denied after suspension? My loan officer said that once I meet all the conditions I will be approved but I have not heard anything or talked to her since about 5pm Friday. I will also be upset to close the accounts and not be able to proceed with the loan. I know the seller is antsy that the first closing date was missed.

I just need somewhere to vent a little, any feedback will be greatly appreciated.

---

Your are being told to do all that because your overal credit file is weak. The underwriter is trying to help you make some adjustments to your credit profile in order for your mortgage application to be approved. This is not unusual. Be patient and do what the underwriter asks you to do. Your Realtor will work with the seller's Realtor to keep your deal alive while your file makes its way to the finish line ... aka "cleared to close". No one can push the underwriter to speed up the process to your satisfaction. That is the realty of how the process works.

[anca21bi]

So now, here we are almost 6pm on March 11, my 3rd closing date and my file was just escalated to the head of underwriting of my lending company (it could go either way)... I did everything the underwriter asked and she still has my file as suspended.

Yesterday the underwriter still had questions, this time about my student loans; I have $160K in loans from 2 masters, which are deferred until at least May 2016. I sent her documents that my loans will be forgiven because I teach special education in an “at-risk” high needs school, but it will be forgiven after I make 10 years of payments. But in 2017, I will be obtaining an annual stipend of 10K from my National Board Certification program. But the red flag for her is the 10 years of student loan payments I have to make. Although I thought this is not a factor for FHA since repayment is over a year?? I may need clarification.

 My loan pre-approval was for FHA ($250K) mid score 661, was a breeze compared to underwriting. I feel like the underwriter doesn’t feel like I make enough for the loan amount of $241K… I should know tomorrow morning what the final outcome is going to be...and I thought getting my scores up was the tough part.

[Anonymous]

anaca21bi,

best of luck. I am also in underwriting right now.Had a list of 8 conditions to meet and I Dont know what the underwriter will come up next with.

Best of Luck

[LynGene]

My fingers have been crossed.  Let us know how it plays out!!