Reply
Contributor
Posts: 102
Registered: ‎07-17-2012
0

Underwriting Final Approval NIGHTMARE!!!

So some of you have been following what I have been going through having to buy a home on short notice and dealing with satisfying underwriting conditions from halfway accross the world. 

 

Apparently since I filed a large insurance claim for my entire condo flooding last month (almost 110k for ruined belongings and being moved out into storage and staying in hotel) my insurance is going to be triple what was submited with the loan. This in turn is going to impact my DTI which I though was going to be no problem. 

 

Rewind though to when I was speaking with the LO and I had only a 21% DTI according to her well that is with my overseas markup on my salary (worded as duty bonus on my check stubs) and my overtime pay. The underwriter is coming back and saying now that they can only use my base salary and not the overtime or the overseas mark up since it is a bonus. I have been at the same job for 3 years now. Same industry for 14. Degree in my field. And now the UW is saying he will have to get some guidance from his boss since the DTI after he figures everything back in is now 45%. To me this is a load of crap.

 

The loan officer is frantically trying to shop for another insurance agent to write the home owners in case the underwriter wants to play hardball and just take my base salary as income. The underwriter did say that if the insurance would have remained constant at what they had estimated of 150 per month or there abouts then I would have been ok and they could approve. They tossed out the other scenario of doing FHA and maybe being able to approve the 45% DTI but I am not sure.

 

I am now halfway across the world with all my stuff in storage. My fiance living with her friend until we can close on the house and have no idea if this is even going to happen. Putting her on the loan is not an option since her credit is shaky and we are still cleaning up her stuff. 

 

I guess yes I am in position to put more money down to offset but I litteraly had 3 bedrooms worth of furniture and electronics ruined as well as a lot of clothing and other items. I think what is so hard to fathom is how someone with a great job can and great payment history can get screwed over so bad by a lender that is hanging on some technicalities when they know good and well that the person has the assets to pay cash for the home if nescessary and could also easily make the payment. Hell even with the insurance going up its exactly what we have paid for almost 3 years to lease the condo we are in!!!

 

Any suggestions from anyone on how I should proceed would be greatly appreciated. I think its time to try and punt and find a new lender right now since the house is done just don't know how quick I can steam roll a lender into closing?

Current Scores 738 EQ (FICO 02/15) 745 EX (Lender Pull FICO) 768 TU (FICO 02/15)

4% Utilization on 180k Total Available Creditlines

AMEX Platinum - NPSL, AMEX HH - 2.5k, BofA Travel Rewards - 25K, BofA 123 Cash Rewards - 15K, BofA Amex - 15K, Barclay Black Card - 10K, Chase United Club - 9.6K, Chase Sapphire Preferred - 14k, Discover More - 7.5K, Citi Presitge - 20K, Nationwide Bank - 7.5K, Dillard's - 5K, JCP MasterCard - 12K, Capital One Venture - 3K, Capital One Quicksilver - 10k, Wells Fargo - 6K, Lowe's - 10K,
Valued Contributor
Posts: 1,146
Registered: ‎11-30-2012
0

Re: Underwriting Final Approval NIGHTMARE!!!

Even with 45% DTI should still go through, is this an FHA loan or Conventional?

Contributor
Posts: 102
Registered: ‎07-17-2012
0

Re: Underwriting Final Approval NIGHTMARE!!!

It was going conventional but they are going through FHA now is what they left it at but did say they needed 41% for FHA. Waiting on reply from underwriter tomorrow.
Current Scores 738 EQ (FICO 02/15) 745 EX (Lender Pull FICO) 768 TU (FICO 02/15)

4% Utilization on 180k Total Available Creditlines

AMEX Platinum - NPSL, AMEX HH - 2.5k, BofA Travel Rewards - 25K, BofA 123 Cash Rewards - 15K, BofA Amex - 15K, Barclay Black Card - 10K, Chase United Club - 9.6K, Chase Sapphire Preferred - 14k, Discover More - 7.5K, Citi Presitge - 20K, Nationwide Bank - 7.5K, Dillard's - 5K, JCP MasterCard - 12K, Capital One Venture - 3K, Capital One Quicksilver - 10k, Wells Fargo - 6K, Lowe's - 10K,
Valued Contributor
Posts: 1,146
Registered: ‎11-30-2012
0

Re: Underwriting Final Approval NIGHTMARE!!!

Find another lender if that's the case, there are definitely lenders that will do much more than 41%. And if you can qualify for Conventional, defintey go that route, especially if you can put 20% down. Why would you want to pay PMI for 5 years?

Contributor
Posts: 102
Registered: ‎07-17-2012
0

Re: Underwriting Final Approval NIGHTMARE!!!

I don't really want to do 20% I was doing 5% and all remaining closing cost after lender credit. I had already prequalified and received conditions with no issues raised at all now during final approval after 2 rounds of conditions they raise this point up. Not saying they were going to reject just saying we need to sort it out. Whatever that is supposed to mean.
Current Scores 738 EQ (FICO 02/15) 745 EX (Lender Pull FICO) 768 TU (FICO 02/15)

4% Utilization on 180k Total Available Creditlines

AMEX Platinum - NPSL, AMEX HH - 2.5k, BofA Travel Rewards - 25K, BofA 123 Cash Rewards - 15K, BofA Amex - 15K, Barclay Black Card - 10K, Chase United Club - 9.6K, Chase Sapphire Preferred - 14k, Discover More - 7.5K, Citi Presitge - 20K, Nationwide Bank - 7.5K, Dillard's - 5K, JCP MasterCard - 12K, Capital One Venture - 3K, Capital One Quicksilver - 10k, Wells Fargo - 6K, Lowe's - 10K,
Frequent Contributor
Posts: 367
Registered: ‎01-14-2012
0

Re: Underwriting Final Approval NIGHTMARE!!!

I see that you've been with your employer for three years. Have you received the OT and bonuses for 2 of those three years? In the past, you only needed a two year history of receiving bonus and OT to include as income. Not sure if that's changed.

You mentioned having plenty of reserves, which is a compensating factor for higher DTIs. Why is the UW not willing to use that as  compensating factor?

Contributor
Posts: 102
Registered: ‎07-17-2012
0

Re: Underwriting Final Approval NIGHTMARE!!!


Sunshine85 wrote:

I see that you've been with your employer for three years. Have you received the OT and bonuses for 2 of those three years? In the past, you only needed a two year history of receiving bonus and OT to include as income. Not sure if that's changed.

You mentioned having plenty of reserves, which is a compensating factor for higher DTIs. Why is the UW not willing to use that as  compensating factor?


I have had overtime and overseas bonuses over the past 2 1/2 years as well as been paid generous per diem which there is always a substantial excess. I can completely understand them not accepting the per diem income as income. However the gross salary is not decreasing and has only increased year over year. 

 

As to why the underwriter is not willing to use that I dont know also why the loan officer and processor had me figured at less than 20% DTI with all my income then the underwriter wants to play these games. With the only response of that I need to either put more money down or find a different home owners insurance company because he doesn't want to include the overtime and bonuses and its his discretion. Luckily I stirred up enough with the loan officer the underwriter's manager is being brought into the situation to provide guidance but I am still in the dark. 

 

The bad part is I have already executed a power of attorney with that lender for my mother to perform closing for me since I dont arrive back to the states till 10 days after we are to close. So the only thing I can do if this falls through with that lender is try and find another lender while I am 13 hours ahead of Houston time (loose sleep) and hope to get things done quickly so my fiance and I can move in while I am home for only 17 days before I have to go back overseas for work. Oh and the best part stay in a hotel for that time since she has been staying at her best friends house until the house gets done.

Current Scores 738 EQ (FICO 02/15) 745 EX (Lender Pull FICO) 768 TU (FICO 02/15)

4% Utilization on 180k Total Available Creditlines

AMEX Platinum - NPSL, AMEX HH - 2.5k, BofA Travel Rewards - 25K, BofA 123 Cash Rewards - 15K, BofA Amex - 15K, Barclay Black Card - 10K, Chase United Club - 9.6K, Chase Sapphire Preferred - 14k, Discover More - 7.5K, Citi Presitge - 20K, Nationwide Bank - 7.5K, Dillard's - 5K, JCP MasterCard - 12K, Capital One Venture - 3K, Capital One Quicksilver - 10k, Wells Fargo - 6K, Lowe's - 10K,
Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Underwriting Final Approval NIGHTMARE!!!

OP, aren't you purchasing a brand new home? If yes, I have an insurance company you might want to try. They only insure brand new structures and because of that, the insurance costs are lower. My homeowners insurance costs for our $347,900 home is only $48 a month! PM me if you are interested and I will send you their contact info so that you can get a quote.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Frequent Contributor
Posts: 367
Registered: ‎01-14-2012
0

Re: Underwriting Final Approval NIGHTMARE!!!

If you're using the builder's preferred lender, I would raise a stink with the builder as well. Let them know their preferred lender is being completely ridiculous. I would bet that if the lender was to hear from the builder as well, they'd be forced to be more reasonable. From what you've written, there's no reason that the OT and bonus income should be excluded.

 

Good luck, and please keep us updated on the outcome.

Contributor
Posts: 102
Registered: ‎07-17-2012
0

Re: Underwriting Final Approval NIGHTMARE!!!

As of this morning they are saying they will allow some of the overtime. Not the bonus. But in the meantime I has the insurance agent change the deductible to 5% and insure to loan value not appraisal and it cut the the premium by 60%. The lo said they think I am good and they should be able to give me clear within 48 hours or so.
Current Scores 738 EQ (FICO 02/15) 745 EX (Lender Pull FICO) 768 TU (FICO 02/15)

4% Utilization on 180k Total Available Creditlines

AMEX Platinum - NPSL, AMEX HH - 2.5k, BofA Travel Rewards - 25K, BofA 123 Cash Rewards - 15K, BofA Amex - 15K, Barclay Black Card - 10K, Chase United Club - 9.6K, Chase Sapphire Preferred - 14k, Discover More - 7.5K, Citi Presitge - 20K, Nationwide Bank - 7.5K, Dillard's - 5K, JCP MasterCard - 12K, Capital One Venture - 3K, Capital One Quicksilver - 10k, Wells Fargo - 6K, Lowe's - 10K,
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

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.