Regular Contributor
dekelley1
Posts: 140
Registered: ‎12-22-2008
So I've started my journey **updated 6/27/12**
[ Edited ]

I wanted to wait until my middle score was at least a 700 before I contacted a lender.  However, after what some of you have said I went ahead and contacted a lender.  After a few hours my lender I called my lender as I was anxious.  To my surprise my credit score was a bit higher then I expected.  My middle score was 668 with TU04; which I don't understand because here at myfico it's 644.  If both are TU04 then why the difference?  Anyway, He was still determining my DTI and he advised I could get a loan for 200k with where my DTI is currently.   For me it was good and bad news.  Bad because I really want to get into a 4plex to jump start investing in realestate.  It would be perfect because with FHA I would just have to live in one of the units. 

 

I explained to him I was looking at 275k and if there was anything I could pay down to get my DTI to an acceptable percentage.  He called me back and w/out me doing anything I got pre-aproval for 250k.  I'm pretty excited, this is my first home and I can't wait to own my own property.  Now I've read plenty of horror stories so I know not to get too excited until I have the keys in my hand! 

 

Anyhow if you pray, pray for me and my family for a smooth close.  Actually I would just like to close, even if it is a rough ride. 


Starting Score: 615
Current Score: Lender pullEQ 667, TU04 698 TU98 644, EX 660
Goal Score: 700


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Valued Contributor
GoodCredBen
Posts: 1,533
Registered: ‎10-25-2011
Re: So I've started my journey

Chances are, your lender is using TU98.... i can almost guarantee you that....

 

As long as you have all of your ducks in a row, and make sure you do everything your lender and realtor want, you should be fine! :smileyhappy:

----- IF you find my post helpful, Select the star in the KUDOS button! :smileyhappy:
Starting Score: 512 10/2011 Current Score: EQ: 686 | TU: 689 | EX: 661
In My Wallet: SFCU Visa: $10,000 | UECU Visa: $5000 | WellsFargo: $3900 | Cap1 QS: $3500 | Cap1 QS: $3000 | Cap1 AU: $1750
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Regular Contributor
m29
Posts: 112
Registered: ‎08-30-2011
Re: So I've started my journey

FairCredBen wrote:

Chances are, your lender is using TU98.... i can almost guarantee you that....

 

As long as you have all of your ducks in a row, and make sure you do everything your lender and realtor want, you should be fine! :smileyhappy:


Actually the score you get here is TU98! From my experience and from what my LO told me most mortgage lenders use TU04. In my case my TU04 from the lender was something like 22 pts higher than what my TU98 score was from here!

 

OP good luck on your journey!! :smileyhappy:


Starting Score: 8/30/11 EQ 520 TU98 593
Current Score: LO Pull 3/5/12 EQ 659 TU04 652 EX 649
LO Pull 5/26/12 EQ 656 TU04 668 EX 651
Goal Score: 700 by 12/30/12


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Regular Contributor
dekelley1
Posts: 140
Registered: ‎12-22-2008
Re: So I've started my journey

Thank you for your responses.  Oh that's right, I think I mixed up TU04 and TU98 at any rate I'm very pleased with how much higher my lender score is.  I will def. be sure to stay on point on my end.  I'm two years late doing this, but I'm just greatful I'm even in a position to make an attempt.  


Starting Score: 615
Current Score: Lender pullEQ 667, TU04 698 TU98 644, EX 660
Goal Score: 700


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Established Contributor
JusdoNit
Posts: 921
Registered: ‎12-10-2011
Re: So I've started my journey

Our prayers are with you


Starting Score: 722
Current Score: Now 687 what the hockey sticks...from a 784 (Aug 12 EX 751 EQ Fico)
Goal Score: 800

If your outGo is more than your INcome than your UpKeep will become your downFALL.

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Regular Contributor
dekelley1
Posts: 140
Registered: ‎12-22-2008
Re: So I've started my journey

Update**  I've ran into a lot of bumps in the road dealing with my amateur lender and agent.  I've found a great Single family residence that has a mother-in-law suite with a tenant in it covering the over half the mortgage.  They have been there 5 years so that nice!!  My pre-approval is for FHA $250k 3.75 Rate and 4.820% APR.  I'm just trying to find a down payment assistance program that will work for me.  Initially I was scared this property wouldn't work for the DPA because it's listed as a multifamily property.  

 

However some funny things came up when I visited the property.  The current owner advised there is only one meter and he controls the thermostats.  I went home and checked the county records and found the house is actually taxed/zoned as a single family residence.  I was pissed that my agent didn't catch this along with a lot of other things.  However this issue may work out in my interest.  

 

I do have a question, does anyone know what dictates a single family dwelling?  Is the fact that the house is zoned/taxed as a single family mean all agency's have to look at it as a single family.  I'm afraid during the inspection they will say it's multi-family, anyone have experience with this? 


Starting Score: 615
Current Score: Lender pullEQ 667, TU04 698 TU98 644, EX 660
Goal Score: 700


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Regular Contributor
dekelley1
Posts: 140
Registered: ‎12-22-2008
Re: So I've started my journey

**Bump**


Starting Score: 615
Current Score: Lender pullEQ 667, TU04 698 TU98 644, EX 660
Goal Score: 700


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Regular Contributor
dekelley1
Posts: 140
Registered: ‎12-22-2008
Re: So I've started my journey

I've changed my lender now and got a new pre-approval.  However this time my DTI is an issue.  Not because anything changed on my credit.  The previous lender stated any debt that will take less then 10 payments to pay off will not be included in DTI.  This new lender states an FHA regulation does not allow this, anyone know if this is true?  

 

I then got some bad news from my agent.  The house is currently listed at 249k as a duplex, but was recently dropped to 239k when we first went to visit the property.  The comps in the area for a like house is selling for about $75 sqft this house is at $65 sqft.  I wanted to offer 230k and have the seller pay my closing cost.  I thought this was reasonable for the following: 

 

1. the house is legally not a duplex as they are presenting/listing it.

2.  I don't know what ramifications number one will have on me.

3. initially the hosue was listed 8k under 2012 tax assessment which was $247.9k.  The 2013 tax assesment is 241k so now we are only 2k under tax assessment. and before they were willing to be 8k under so I felt this was a good offer.

 

However, when I spoke to my Agent is stated the sellers bottom line is a to net 239k out of the house.  Which means I would be looking at 239k + $6900 (closing) = $249.5K.  With PMI and $3900 in taxes a year!!!!  I would be looking at a payment of over $1700 a month.  The current tenant in the mother in law unit is paying $1100, and my current rent is $750.  Which means I would have no net cash flow!

 

I still think the house is a good deal, but my main goal is to own a home w/ a tenant that allows me to save money for a larger investment later.  I think I will have my agent submit my offer anyway and if they reject it I'll walk away.  :smileysad:


Starting Score: 615
Current Score: Lender pullEQ 667, TU04 698 TU98 644, EX 660
Goal Score: 700


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Regular Contributor
dekelley1
Posts: 140
Registered: ‎12-22-2008
Re: So I've started my journey **updated 6/27/12**

Does anyone have any insight on the few questions I've asked?  Is there more information you need to help me, or am I not explaning my situation clear enough?


Starting Score: 615
Current Score: Lender pullEQ 667, TU04 698 TU98 644, EX 660
Goal Score: 700


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Regular Contributor
Cloudlb
Posts: 227
Registered: ‎08-05-2010
Re: So I've started my journey **updated 6/27/12**

Hey, if you're still on here, I'd like to know what happened.  I am also interested in a multi-family property.