topic Re: Sweating Bullets in Mortgage Loans

Sweating Bullets

Anonymous — Sun, 20 Jan 2013 01:32:06 GMT

Okay, I'm still being a pessimist. My realtor sent me a text the other day asking me for my social security number and the name of my insurance company and the agent's name. I asked her why she needed that. She replied the title company needed it. Does that sound right? Of course I sent it to her. In case you aren't familiar with my scenario, I am trying to get a USDA guaranteed loan. I've been approved by the lender with a 665 TU middle score but I've had a lot of overdrafts and I had to write a LOE about those. My LO also did a verification of deposit but I don't know which was used. I have two bank accounts and one hasn't ever been overdrawn but we needed to use the one that had because I have a direct deposit going into it. My file was sent to USDA either on the 11th or 14th of Jan. In my state they were reviewing files received on the 10th Friday. At any rate, I still can't believe I will actually be approved but my realtor says its just a formality now. Is she right? Closing date has been set for Jan 31st. Does USDA ever deny someone after the lender has approved? The house has appraised several thousand above the price, passed inspections, etc. Since I work out of town and don't always go home on the weekends and my realtor knows this, she sent me an email late yesterday evening asking if I would be available for the final walk through on the house next weekend. When I replied back to her that I could do the walk through next weekend but I was still waiting for someone to pull the rug out from under me, she sent back "You will be a home owner by Feb. 1 !" Should I get excited yet? What could go wrong? Is it typical for realtors to ask for you social security number and insurance information for a title company? Any input will be greatly appreciated. Sweating bullets here.

Re: Sweating Bullets

Anonymous — Sun, 20 Jan 2013 01:46:08 GMT

Breathe.....

If your file has gone to USDA, then IMO, you have nothing to worry about. As long as your lender didn't make some type of major oversight, you'll be fine.

If you're paying your first year's homeowner's insurance premium at closing, the title company would need the insurance company and agent's info so they could show the charge on the HUD, and know where to mail the 2013 payment to. The title company also searches public records to ensure you don't have any judgments, etc, that would attach to the home.

You'll be a homeowner soon, so better start packing!

Re: Sweating Bullets

Anonymous — Sun, 20 Jan 2013 02:34:52 GMT

OMG, I so hope you are right! I don't have any judgments or anything against me but I'm not paying the insurance up front. Its going to be formulated into the payment. Would that make a difference in why she needed that information?

Re: Sweating Bullets

Anonymous — Sun, 20 Jan 2013 02:37:27 GMT

If it matters, the sellers are paying all closing costs. I paid for the appraisal and inspection but I've been told I wont need to bring any money to closing. Does that sound right? I'd be glad to pay the home owners insurance up front if needed.

Re: Sweating Bullets

Anonymous — Sun, 20 Jan 2013 02:44:48 GMT

You pay the first year's insurance up front. You pay either at closing or before closing. If the seller is paying your closing costs, the insurance premium will just be shown as a seller paid item on the HUD. Either way, the the title agent will need that info. The premium paid this year will cover you from closing until Jan/Feb 2014. The amounts collected through escrow this year will be used to pay the 2014 premium.

Re: Sweating Bullets

tooleman694 — Sun, 20 Jan 2013 04:46:00 GMT

If the bank approved, then you are good to go.

Bank is the hardest part.

Re: Sweating Bullets

luckelle — Sun, 20 Jan 2013 06:06:38 GMT

congrats lifeafter!!! You are over the hump! man I luv these stories.

Re: Sweating Bullets

Anonymous — Sun, 20 Jan 2013 19:01:03 GMT

Don't worry. I had to do the same thing last night to satisfy one of my conditions for approval. I sent the insurance company's name and the agent's name to the UW.

If you are paying for your homeowners ins through the monthly payment, those monthly payments are for next year's premium as they go into a escrow account. This year's premium is paid upfront as a prepaid at closing.