Because the builders LO probably can't get an approval with a 600 score.

 

They need to work with Wells to get that done. I would think Wells could get this done very quickly.

We resigned our loan docs last night and submitted them to our LO. We know our scores could be higher, and I know they are increasing. But at least if we don't get approved we'll know exactly why and what we need to do in order to get approved next time. This process is just so emotional for us, we just want some guidance.

We honestly thought 'pre approval' was working with their preferred lender as we were doing. Our scores were not high enough at the beginning of our build. We continued to pay off items, have collection items deleted, etc for 5 months. We concentrated on improving our scores. We were in the 400's 11 months ago and today we're in the 600's. we had no idea pre approval was the process of going through underwritting- we thought that was the actual loan approval.
I feel so dumb now because this is all coming out now- after the fact.

Pre-Approval is when they run you thru the DU system and it says yes or no. takes just a few minutes.

 

But if you were in the 400s there is no way you would have made it thru DU, even at 600 you will probably not make it thru their DU system.

 

Wells should be able to get you pre-approval this morning and send you a doc to show the builder.

No we didn't try when our scores were in the 400's. we knew we had to wait until we were at least at a 600 or better. We just made the 600 mark this month. Thank you for the explanation. We have learned a valuable lesson.

A builder actually started building without a preapproval? Why would they take such a risk?

Yes they did. I'm thinking the builders figure the can just sell the home if someone doesn't qualify after a build. I'm not 100% sure. They have listed the house but if we get our pre approval we're going to put an offer on it.

Earnest monies are different....we were required to plunk down $1k, but had to have an additional $4k within so many days.  Hiring a realtor is your BEST bet.  Going through the sales *help* can be a P I T A ! ! !

Yeah we see that now. I have a realtor now who I've been talking to. I assume there fees are included in the contract?

OP:  This is all a learning process.  If you don't get this house, there will be a better deal around the corner.  Your time for homeownership WILL COME!  Buying or selling a home can be SO EMOTIONAL, it's one of the most difficult things you will ever live through.  When it's finished and you have the keys, it will be worth it.  Stay strong.

 

If you do get your pre-approval, I'd use it as a bargaining tool to land yourself either a better deal, or more upgrades at a discount or builder cost.   Contact the home office or have your realtor get her bat out, lol.  Make this WORK for you!!!!!