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What are our chances??

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Anonymous
Not applicable

What are our chances??

Hello,

 

I have been stalking these forums for the last few weeks. This site is awesome. Here is what we have going on.

 

We hit a bad patch back in 2008 when we both lost our jobs the same week. I was in Real Estate and my husband in construction. Two worst fields when everything crashed. Our credit took a hit. We have managed to get it back to a decent score. Hubby still has an old outstanding credit card collection around $6,000. We had insurance on all of our credit cards, but this one wouldn't let us activate the insurance because we were unemployed????? We are actually involved in a class action about this. It drops off the end of this year.

 

Our middle credit scores are 643 and 676, we do have a contract on a house. Our close date as of right now is April 1. (Great day to close, LOL) We did get an approve/eligible on the AUS. We will have about 3 months reserves after close. The problem is that our broker has added the 5% for the collection to our DTI. So that shoots us up to 47% on the back end. The new mortgage payment will actually be $400.00 LESS than what we have been paying in rent the last 4 years. We have LEO's written to explain what happened in 2008. We already have had inspections done. Our mortgage broker is actually going to submit the loan to underwriting by Tuesday. He said it will take about a week to get an answer. Depending on the answer we will then order the appraisal.

 

I am a little confused as to why it still has to go to underwriting if we got an approve/eligible from the AUS. Is is just to verify what was put into the system? We are trying not to get excited about the house because we don't want to be disappointed.

 

I was going to put this in the April closing thread, but there isn't one yet.

 

Thank you for reading!

Message 1 of 6
5 REPLIES 5
Vegas247
Established Contributor

Re: What are our chances??


@Anonymous wrote:

Hello,

 

I have been stalking these forums for the last few weeks. This site is awesome. Here is what we have going on.

 

We hit a bad patch back in 2008 when we both lost our jobs the same week. I was in Real Estate and my husband in construction. Two worst fields when everything crashed. Our credit took a hit. We have managed to get it back to a decent score. Hubby still has an old outstanding credit card collection around $6,000. We had insurance on all of our credit cards, but this one wouldn't let us activate the insurance because we were unemployed????? We are actually involved in a class action about this. It drops off the end of this year.

 

Our middle credit scores are 643 and 676, we do have a contract on a house. Our close date as of right now is April 1. (Great day to close, LOL) We did get an approve/eligible on the AUS. We will have about 3 months reserves after close. The problem is that our broker has added the 5% for the collection to our DTI. So that shoots us up to 47% on the back end. The new mortgage payment will actually be $400.00 LESS than what we have been paying in rent the last 4 years. We have LEO's written to explain what happened in 2008. We already have had inspections done. Our mortgage broker is actually going to submit the loan to underwriting by Tuesday. He said it will take about a week to get an answer. Depending on the answer we will then order the appraisal.

 

I am a little confused as to why it still has to go to underwriting if we got an approve/eligible from the AUS. Is is just to verify what was put into the system? We are trying not to get excited about the house because we don't want to be disappointed.

 

I was going to put this in the April closing thread, but there isn't one yet.

 

Thank you for reading!


How much is the house you are buying? How much down are you putting? Is it a Conventional loan, FHA,VA? we need to know these things.

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Message 2 of 6
Anonymous
Not applicable

Re: What are our chances??

Sorry about that, left out information. It is an FHA loan, house is 99,800, seller is paying 2% in concessions. We are putting down 3.5%. And like I said in the original post we will have about 3 months reserves left over.

 

Thanks!

Message 3 of 6
Anonymous
Not applicable

Re: What are our chances??

Also, one more question. I just want to make sure I am understanding what is menat by compensating factors.

 

What do they mean by compensating factors? How many do they normally look for?

 

Thank you for any responses

Message 4 of 6
Anonymous
Not applicable

Re: What are our chances??

Regrding why your file sent to underwriting even with AUS approval:  Yes, the lender's underwriter will still need to validate all the data your broker entered (qualifying income, any debt that may not reporting on credit report such as alimony/child support, and your assets) to confirm your AUS approval is valid.  Also, AUS doesn't always pick up all the nuances of a file; for example, if you have a mortgage go to foreclosure after a BK, sometimes the system doesn't read the foreclosure correctly, and may give a false approval.  

 

The underwriter needs to review your entire loan package before your approval is "official."  I hope this helps.

 

However, from what you have stated below, you do have a decent shot getting approved for a FHA loan.  Good luck, and keep us posted!

Message 5 of 6
Anonymous
Not applicable

Re: What are our chances??

Thank you for the response! That is what I was thinking. The AUS didn't even kick out anything with the collection. All it said was that we had to pay any judgments. Which we don't have, all we have that is bad is my husbands old collection.  I will keep my fingers crossed and will definitely keep this post updated!

Message 6 of 6
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