topic Re: Denied pre approval in Mortgage Loans

Denied pre approval

Anonymous — Tue, 25 Mar 2014 23:59:58 GMT

I recently applied to get pre approved for a mortgage. I have had over 18 months of clean credit and before that was a period of no credit as I was paying off old stuff that had gone into collections. I had 4 credit cards that were paid in collection but are over 7 years old and are not on my credit reports when I pull it. I have a judgement on my credit that was paid in 2011 and a Chase student loan that was charged off in 2008. I recently paid that off in collections. I got denied for past credit issues and was told to try again in 3 months. Income to debt ratio is not an issue (I make $80,000/yr with a $200 car payement and 2 credit cards with minimal revolving balances.). Is it realistic that 3 months will make a difference? The 2 bad items on my report are so old I was suprised that even with a decent amount of good credit history I go denied. I am trying to get a MassHousing loan which has to go through the Fannie Mae portal. What should I do to help my chances of preapproval? If all banks have to use the fannie mae portal for MassHousing, will i get the same answer from every bank?

Re: Denied pre approval

dollar_bill — Wed, 26 Mar 2014 00:53:13 GMT

You can always save money (as you said DTI is not an issue) and buy with a hefty down. By that time, who knows, maybe interest rates will be over 5-6% and you'll start see a dip in home prices.

How much of a loan are you looking for?

What are your scores?

Probably read a couple of the sticky's up top and post accordingly. You'll get better feedback.

Re: Denied pre approval

babyeyes00 — Wed, 26 Mar 2014 13:11:44 GMT

The same thing happened to me yesterday. I got denied at NFCU for a paid judgment from 5 years ago. I have really good scores, low DTI, and a good income. Its so frustrating. Im trying to get a house in July. Good luck to you and keep us posted.

Re: Denied pre approval

mynameainttracy — Wed, 26 Mar 2014 15:57:28 GMT

NFCU denied us back in November and all they would say is try again in 6 months. Very frustrating.

Re: Denied pre approval

FSFdoppleganger — Wed, 26 Mar 2014 16:06:15 GMT

babyeyes00 wrote:

The same thing happened to me yesterday. I got denied at NFCU for a paid judgment from 5 years ago. I have really good scores, low DTI, and a good income. Its so frustrating. Im trying to get a house in July. Good luck to you and keep us posted.

5 Years ago?! Are you sure that was the only reason they gave you. That got me all worried because I am also in your situation. I have a paid judgment and 740ish scores . I was about to app with NFCU also because of the NO PMI conventional...Anything else came about your denial?

Re: Denied pre approval

Anonymous — Wed, 26 Mar 2014 16:45:30 GMT

If you don't go through the big banks you will have a way better chance. Find a loan originator or broker in your area. All they do is mortgages and most people that go through these have credit or other issues. Maybe someone in your area can give you a company name where are you located

Re: Denied pre approval

Anonymous — Thu, 27 Mar 2014 14:07:48 GMT

I'm looking to do a Massachusetts Masshousing loan due to low down payment (5%) my scores are 697/701/702. I applied at a small local savings bank where I have my accounts. I have been nervous of trying a mortgage broker that just does mortgages because I have heard bad things about the problems when they sell the loans later

Re: Denied pre approval

babyeyes00 — Thu, 27 Mar 2014 14:40:54 GMT

I asked the lady if there was anything else that was factored into my denial. She said that I had a judgment and a collection acct. Both were paid and not recent. The judgment was 5 years old and the collection account was 3 years old and had reappeared on my credit. Im in the process of getting that one removed...again. I was told that when you apply for mortgages that collection accounts will appear from no where. Well that happened to me. Thank goodness I have the receipts to prove it and the letters from the CBs that deleted it. Good Luck to you.

Re: Denied pre approval

FSFdoppleganger — Thu, 27 Mar 2014 16:11:56 GMT

@babyeyes00 wrote:
I asked the lady if there was anything else that was factored into my denial. She said that I had a judgment and a collection acct. Both were paid and not recent. The judgment was 5 years old and the collection account was 3 years old and had reappeared on my credit. Im in the process of getting that one removed...again. I was told that when you apply for mortgages that collection accounts will appear from no where. Well that happened to me. Thank goodness I have the receipts to prove it and the letters from the CBs that deleted it. Good Luck to you.

WOW!!! It is unbelievable how some of us can go thru home purchase without any hiccups even with bad credit while others can't, even with good score. One has to wonder whether the score system is not just a hoax altogether. It seems that it's all about luck. Anyhoo...I can't think of any unpaid collections and the ones I had were paid and fell off my report more than 2years ago. I don't see them reappearing because I opted-out (whatever that means). I will be on the look out though .Thank you for your reply.

Re: Denied pre approval

babyeyes00 — Thu, 27 Mar 2014 16:39:37 GMT

Definitely keep us posted

Re: Denied pre approval

FSFdoppleganger — Thu, 27 Mar 2014 17:27:18 GMT

Will do.

Re: Denied pre approval

FSFdoppleganger — Mon, 31 Mar 2014 19:23:08 GMT

@babyeyes00 wrote:
I asked the lady if there was anything else that was factored into my denial. She said that I had a judgment and a collection acct. Both were paid and not recent. The judgment was 5 years old and the collection account was 3 years old and had reappeared on my credit. Im in the process of getting that one removed...again. I was told that when you apply for mortgages that collection accounts will appear from no where. Well that happened to me. Thank goodness I have the receipts to prove it and the letters from the CBs that deleted it. Good Luck to you.

As a follow-up to this conversation...
Just applied with NFCU and USAA. Instant preapproval with USAA, letter received via email message. NFCU rep said I was preapproved but a LO will call me for the details and LOA.

Re: Denied pre approval

babyeyes00 — Mon, 31 Mar 2014 20:34:00 GMT

Thats awesome FSF. I still havent heard anything from USAA or wells fargo. We shall see.

Re: Denied pre approval

FSFdoppleganger — Mon, 31 Mar 2014 23:01:19 GMT

@babyeyes00 wrote:
Thats awesome FSF. I still havent heard anything from USAA or wells fargo. We shall see.

Thanks and good luck.

Re: Denied pre approval

topa — Thu, 01 May 2014 12:16:16 GMT

What are your FICO credit scores? I think I'm on the same boat as you, but my baddies are much more recent than yours.

Re: Denied pre approval

FLAJenn — Thu, 01 May 2014 14:49:59 GMT

In May last yearI applied to FGMC after getting denied via our builders lender and got approved with my mid at 640 and my fiance's mid at 617 with a recent collection on both of our accounts that has since been removed. At the time though it caused me a huggggggge amount of stress. We did get approved through automated though even with that. I then tried with Nationstar as they were the preferred lender for our builder for the incentives and since my fiance's score went up to their minimum of 620 and got approved through them at a lower 4.2% rate with the recent collections on both our reports.

Re: Denied pre approval

FSFdoppleganger — Thu, 01 May 2014 18:01:20 GMT

@FSFdoppleganger wrote:

@babyeyes00 wrote:
Thats awesome FSF. I still havent heard anything from USAA or wells fargo. We shall see.
Thanks and good luck.

Any update yet from USAA and Wellsfargo? Just curious.

Re: Denied pre approval

jcrsmom — Thu, 01 May 2014 23:30:31 GMT

Every situation is different, so don't worry. I just got a pre-approval through them today.

Re: Denied pre approval

Barneygirl — Fri, 02 May 2014 01:28:04 GMT

I'm not sure what's going on, but I have 3 paid judgements on my CR... all about 4-5 years old. I was approved for a home, and actually closed on the refi two months ago. Also, was just pre-approved for a second mortgage.

My suspicion is that it's because it's a MassHousing loan, and the judgement is for a student loan (govt backed I'm assuming??)