Underwriting denial

needahousenow · ‎03-17-2015

Well, even after being approved with conditions, underwriting decided to deny my loan for a $100 new collection. I have plenty of liquid reserves and a score that qualified. I just don't even understand what happened. Apparently the underwriter did a "refresh" even after I was told that it wouldn't happen. Smh.

StartingOver10 · ‎03-17-2015

@needahousenow wrote:
Well, even after being approved with conditions, underwriting decided to deny my loan for a $100 new collection. I have plenty of liquid reserves and a score that qualified. I just don't even understand what happened. Apparently the underwriter did a "refresh" even after I was told that it wouldn't happen. Smh.

Try another lender. There must have been something else...or the lender has very strict overlays.

As to pulling credit up to the end - yes some do just before closing to make sure your financial condition hasn't changed. But this $100 collection seems extreme. Who was the lender? ....A big box bank?

frugalQ · ‎03-17-2015

Did the new collection drop your score below their requirements?

needahousenow · ‎03-17-2015

Not that I'm aware of FrugalQ. Btw I've been monitoring your progress and congrats! I usually only look but when I received this news, I decided to post. My realtor is sending me to someone else but I am very discouraged. I can't believe that after all I've gone through in the process, instead of just having me pay it off or atleast explaining it, they just denied me.

needahousenow · ‎03-17-2015

Actually it was a small bank. I think it was more to it than what they are telling me. Also, boa was late but that's something they already knew. I was told it wouldn't be a problem. I have reserves and could easily pay it off, however since I was denied instead of given conditions, I don't think I have any recourse. I was told that I'd have to wait an additional 12 months. I simply don't have time for that. My credit isn't perfect but my scores qualify well enough.

StartingOver10 · ‎03-17-2015

@needahousenow wrote:
Actually it was a small bank. I think it was more to it than what they are telling me. Also, boa was late but that's something they already knew. I was told it wouldn't be a problem. I have reserves and could easily pay it off, however since I was denied instead of given conditions, I don't think I have any recourse. I was told that I'd have to wait an additional 12 months. I simply don't have time for that. My credit isn't perfect but my scores qualify well enough.

When was this late with BOA and was it for a cc payment?

Small banks each have their own personalities and can change their guidelines even more quickly than the big box banks. Hopefully you are going to a correspondent lender/mortgage banker next. The originate and fund their own loans (then sell them after you close).

frugalQ · ‎03-17-2015

Thanks needahouse,

We may have to push our closing back a day or two. I'm disgusted....annoyed with everyone involved in this process.

We've done everything asked of us. We have provided documents with less than 1 hour turnaround. And to find out this bit of information at the 11th hour is just UGH!

Anonymous · ‎03-17-2015

Darn frugalQ! I hope everything will go smoothly