topic Re: Petrified of this process! in Mortgage Loans

Petrified of this process!

fixmycred14 — Tue, 04 Feb 2014 17:13:41 GMT

Thanks to myfico, I've made it this far!

However, I am terrified of what's to come. I've been pre-approved for an FHA mortgage. My LO said my scores were higher than I thought! I need to update my signature line. I put a contract on the lot and have selected options. It's new construction with a delivery of Fall 2014. They estimate pouring the foundation in April. I have several months to go before this is all said and done with. I received my loan documents via Fedex yesterday.

How long will underwriting take once they receive the loan documents? I've already submitted my supporting docs.

When will they pull my credit again? When can I expect to close? I put down a small deposit and the builder set up a payment plan for the remainder of the DP. I don't want to lose my money or have my loan fall through. I'm so scared...

Re: Petrified of this process!

newmomnewme — Tue, 04 Feb 2014 17:17:55 GMT

Congrats!!!!!!!! Don't be scared. Think of it like this, your hard work has finally paid off...

Remember, you were my support when I started the process. Please take time and enjoy this. Get all of your documentation together and try to be prepared to explain all debts, available credit, inq, bank accounts etc. Anything you can think of!

You will be fine, and I expect to see pictures of EVERY step along the way. You deserve to enjoy this process.....let the fear go. We are here for you.

Re: Petrified of this process!

newmomnewme — Tue, 04 Feb 2014 17:24:46 GMT

@fixmycred14 wrote:
Thanks to myfico, I've made it this far!

However, I am terrified of what's to come. I've been pre-approved for an FHA mortgage. My LO said my scores were higher than I thought! I need to update my signature line. I put a contract on the lot and have selected options. It's new construction with a delivery of Fall 2014. They estimate pouring the foundation in April. I have several months to go before this is all said and done with. I received my loan documents via Fedex yesterday.

How long will underwriting take once they receive the loan documents? I've already submitted my supporting docs. Mine was USDA but came back from review in less than two weeks; my broker kept in close contact with me but got mostly everything he needed up front. Did your lender ask for LOE for anything?

When will they pull my credit again? The broker told me they would pull my credit again right before closing or 120 days from the last pull if I hadn't closed yet. When can I expect to close? With new construction, I am not positive...with my situation, they said they would have to do a final appraisal after completion, I am thinking they may need to do that before closing??? Pros please chime in?? I put down a small deposit and the builder set up a payment plan for the remainder of the DP. I don't want to lose my money or have my loan fall through. I'm so scared... Try your best to relax! PLEASE....enjoy building your new home!!!

FYI I am in talks with my job about the project assignment (15 month free housing), they have 2 openings....so I have the house plans on hold until I get a firm word from my job. With that said, please relax and start picking out cabinets, flooring, etc. Don't worry about your deal falling through...think about moving into your new home this fall!!!!!! Yay! I am so excited for you. I repeat, I expect to see pictures starting in April!

Re: Petrified of this process!

fixmycred14 — Tue, 04 Feb 2014 17:31:17 GMT

Hey there newmomnewme!!!

How's it going?

I know....I guess I'm scared of the unknown and what happens next?? My LO is awesome and said she would "hold my hand" every step of the way. So, far the builder is giving $4K towards closing. I have another appointment next week to finalize interior colors. I'm trying to enjoy this and not stress...Sigh

Also, they preapproved me with the old repo on my credit. We are waiting for it to fall off in May (EQ confirmed). So, I'll be holding my breath until it's off.

I'm thinking maybe I need to draft my letters now!

Re: Petrified of this process!

fixmycred14 — Tue, 04 Feb 2014 17:35:25 GMT

Thanks for all the info! What's LOE?

So, far I've submitted all of the pertinent docs ( i.e. W-2s, paystubs, bank statements, deposit receipts, lease, electronic payment ledger etc)

They're just waiting on me to Fedex the loan docs back. I guess they'll ask for anything else they need?

Re: Petrified of this process!

fixmycred14 — Tue, 04 Feb 2014 17:36:58 GMT

You will definitely be the first to see pics!! Thanks for your support!

Re: Petrified of this process!

newmomnewme — Tue, 04 Feb 2014 17:38:11 GMT

Yay! @ having an awesome LO. Did she give you a list of conditions with your pre-approval? If so, you can work on fulfilling those requirements while you are waiting, so you can be prepared. If not, it wouldn't be a bad idea to take a look at all of the baddies (usually 90-day lates or worse) and be prepared to explain how or why they occurred. I think you are all set!!! Keep me posted.

Re: Petrified of this process!

fixmycred14 — Tue, 04 Feb 2014 17:42:43 GMT

So, far I have received a list of conditions. I guess waiting for the repo to fall off or she'll have to factor it in. Otherwise, she has not given me a list of conditions to satisfy. I'm reviewing the loan docs and preparing to send them back.

Then what? They submit everything to UW?

Re: Petrified of this process!

fixmycred14 — Tue, 04 Feb 2014 17:44:56 GMT

So, are you still going to take the free rent option and hold off on your new home? What happened with the builder and your basement?

Re: Petrified of this process!

newmomnewme — Tue, 04 Feb 2014 18:32:02 GMT

In my case, that is exactly what happened. They submitted everything along with my signed loan committment (before I even picked a lot) and I had a list of conditions including consolidating my student loans to keep my DTI in check.

Worst case scenario, if they factor in the repo what happens? higher interest rate?

Re: Petrified of this process!

newmomnewme — Tue, 04 Feb 2014 18:36:46 GMT

@fixmycred14 wrote:
So, are you still going to take the free rent option and hold off on your new home? What happened with the builder and your basement?

ok, I am working on the free rent option now...just got off the phone with my boss. As for the builder(s) and the community I loved so much, I am running away from that deal. They wanted to charge 30k extra for the basement, then we met to discuss options and they were supposed to call me back last week....haven't heard from them since. The community has had 3 different builders in 3 years, there are only 15 homes built and 3-4 of them are unoccupied and don't have basements. I guess they don't want to sell a house to me. I felt deflated at first, but when I got home and saw the email about the new project, I was thinking I may have dodged a bullet. I didn't really want to move down there, it was just affordable and convenient to the Salisbury office.

We will see....I spoke to my boss again today, I think he is willing to let me go to the project, he just wants the project to pay for my housing vs. our department paying for the housing. Sooooooo, I had to submit my level of interest to him today by 12pm and we will see. I am hoping to hear something before the end of the week!!

Re: Petrified of this process!

fixmycred14 — Tue, 04 Feb 2014 18:39:17 GMT

Oh okay. I had the lot in mind and they pre-approved me. I put the contract on it on Sunday and the loan docs came Monday. So far, no conditions.

Worst case is that they would factor it into my DTI. I think the percentage is 5% of the debt. I will be fighting tooth & nail come May with EQ. They told me it will be off my reports by then. It only shows up on EQ. The LO said either way she thinks it will be ok.

Did you have a realtor or attorney?

Re: Petrified of this process!

c4sp14nx — Tue, 04 Feb 2014 19:42:12 GMT

Congratulations on your new home! Your thread caught my attention b/c I am in very nearly the same boat as you -- signed a purchase contract at the end of December, picked out options and whatnot at the end of January, received my conditional mortgage approval about a week later...and now just feel like I'm waiting for the other shoe to drop. Like you, my home is a new build expected to be completed in fall of this year -- and I have a feeling these will be the longest few months of my life!

I'll definitely be checking back with this thread as you continue through the process, and I'm sure that you don't have anything to worry about -- you wouldn't have gotten this far if your file had any show-stopping issues!

Re: Petrified of this process!

newmomnewme — Tue, 04 Feb 2014 19:43:20 GMT

Just a realtor and a broker that I absolutely loved. I think I will drop him an email today and let him know what happened at the community and at work. When I am ready to pull the trigger again, I will call him for sure.

Re: Petrified of this process!

Anonymous — Tue, 04 Feb 2014 20:01:20 GMT

@fixmycred14 wrote:
Thanks to myfico, I've made it this far!

However, I am terrified of what's to come. I've been pre-approved for an FHA mortgage. My LO said my scores were higher than I thought! I need to update my signature line. I put a contract on the lot and have selected options. It's new construction with a delivery of Fall 2014. They estimate pouring the foundation in April. I have several months to go before this is all said and done with. I received my loan documents via Fedex yesterday.

How long will underwriting take once they receive the loan documents? I've already submitted my supporting docs.

When will they pull my credit again? When can I expect to close? I put down a small deposit and the builder set up a payment plan for the remainder of the DP. I don't want to lose my money or have my loan fall through. I'm so scared...

First of all congrats! I know how you feel. I put a contract on a new construction back in October and now that I'm a few weeks ago from completion I am getting very scared. I'm sure it will all work out in the end, but just reading that someone else is a little nervous let me know that I'm not alone.

Good luck to you and I hope you fly through with no issues

Re: Petrified of this process!

fixmycred14 — Tue, 04 Feb 2014 21:04:08 GMT

@newmomnewme, c4sp14nx & gogotexan --

Thank you all for the support and encouragement! I really appreciate it and wish you all the very best! It's comforting to know that I'm not the only one out there...Anything you can share about your process is welcomed.

Re: Petrified of this process!

ezdriver — Tue, 04 Feb 2014 21:35:50 GMT

You will get to the closing fine because you are a myFico family member and thus you are educated on credit issues and likely won't do what one of my buyers recently did ... went out and bought a brand new expensive motorcycle 30 days from closing. Her DTI was shot with that purchase so it looks like she won't be closing ... unless she gets rid of the bike. It is amazing to see what some folks do just when at the critical point in their transactions. I know that you will hang tough. Congratulations on getting this far.

Re: Petrified of this process!

newmomnewme — Tue, 04 Feb 2014 21:42:31 GMT

@ezdriver wrote:
You will get to the closing fine because you are a myFico family member and thus you are educated on credit issues and likely won't do what one of my buyers recently did ... went out and bought a brand new expensive motorcycle 30 days from closing. Her DTI was shot with that purchase so it looks like she won't be closing ... unless she gets rid of the bike. It is amazing to see what some folks do just when at the critical point in their transactions. I know that you will hang tough. Congratulations on getting this far.

You can't be serious?!!?

Re: Petrified of this process!

fixmycred14 — Tue, 04 Feb 2014 21:47:02 GMT

Oh my goodness!! My loan docs were enclosed with a letter...in huge, bold, red letters it read "DO NOT APPLY FOR NEW CREDIT!"

I pray I make it to the finish line.

So, what happens if you don't close? Does the house automatically become an inventory house? Can you push the date? New lender?

Re: Petrified of this process!

Anonymous — Tue, 04 Feb 2014 22:45:51 GMT

@c4sp14nx wrote:
Congratulations on your new home! Your thread caught my attention b/c I am in very nearly the same boat as you -- signed a purchase contract at the end of December, picked out options and whatnot at the end of January, received my conditional mortgage approval about a week later...and now just feel like I'm waiting for the other shoe to drop. Like you, my home is a new build expected to be completed in fall of this year -- and I have a feeling these will be the longest few months of my life!

I'll definitely be checking back with this thread as you continue through the process, and I'm sure that you don't have anything to worry about -- you wouldn't have gotten this far if your file had any show-stopping issues!

I couldn't help but chime in because like you I'm in the process of building a house. I recieved a conditional mortgage approval as well, I did have one condition which was that I be able to obtain PMI which requires my FICO score be 700. The builder is actually a head of schedule and I'm still 11 points from 700. Like you I'm nervous because I put down $50K with the builder but really feel confident it will work out. Just enjoy the ride!