topic Re: I DONT UNDERSTAND WHY THEY DENIED ME. in Mortgage Loans

I DONT UNDERSTAND WHY THEY DENIED ME.

Anonymous — Thu, 07 Aug 2014 18:34:46 GMT

I applied for a mortgage and have a good work history, income and somewhat okay credit (672), I have 2 capitol one credit cards which have been paid on time for 3 years, an NTB credit card provided by CITI (a car credit card used only at certain car mechanic shops) and a personal loan from Springleaf financial which is paid on time for over a year.

The bank replied back saying that I need 3 active trade lines????? Hello, dont I have 3 active trade lines? The loan officer said that he looked at my credit report and seen that I indeed have the tradelines but he needs to send the the info back to the ones who will approve the loan. Im waiting until this coming Monday for a reply from them. I don't understand what they are denying me the loan? Any help would be much appreciated, thanks.

Re: I DONT UNDERSTAND WHY THEY DENIED ME.

dreamer2014 — Thu, 07 Aug 2014 23:06:57 GMT

I'm no expert but based on the information provided and recent experience applying for a mortgage, I would shop around. Just my 6 cents.

Re: I DONT UNDERSTAND WHY THEY DENIED ME.

Anonymous — Fri, 08 Aug 2014 01:03:27 GMT

Hello jm,

Sounds like loan officer is dealing or working for a broker, I would suggest you look for a direct lender - why because an experince loan officer should be apply to pre qualify you over the phone..If you pass that then, he would ask you to sumit all your documentation for your pre-approval. I have a question did you do that ? However most common loan program are conventional, fha with conventional min fico is 620 fico with min 5% down, on the over hand fha is min down 3.5% with a min 580 fico. in the state of california

I hope that helps..

- turbo1

Re: I DONT UNDERSTAND WHY THEY DENIED ME.

ezdriver — Fri, 08 Aug 2014 01:39:51 GMT

Go apply elsewhere. You are dealing with incompetent people at ths lemder/broker.

Re: I DONT UNDERSTAND WHY THEY DENIED ME.

sarahcatherinemay — Fri, 08 Aug 2014 03:11:02 GMT

Who is your lender?

That doesn't sound right - I would definitely find a new lender, one that only does mortgage loans. If you really like and trust your REALTOR (which you should) they should have someone that they like working with. If this is the lender that they referred you to, ask them for someone who knows what they are doing.

Good luck!

Re: I DONT UNDERSTAND WHY THEY DENIED ME.

ShanetheMortgageMan — Fri, 08 Aug 2014 03:30:06 GMT

If the 2 Cap 1 cards, NTB credit card, and Springleaf loan all report to credit and are currently open then that is 4 active trade lines. Have the Cap 1 & NTB been used within the past 12 months? Some lenders want there to be activity on at least 3 trade lines in the past 12 months, although most lenders are fine if there isn't.

Sometimes lenders just get a little confused, I am dealing with an underwriter who calculated commission income at a lot less than I did, but once it was explained how I arrived at my calculation the underwriter agreed. Perhaps your loan officer just needs to explain things and it'll be straightened out. Keep us posted.

Re: I DONT UNDERSTAND WHY THEY DENIED ME.

Anonymous — Fri, 08 Aug 2014 04:55:10 GMT

Yea I am kind of upset, I will have to do that if they still denied me when I call them next week.

Re: I DONT UNDERSTAND WHY THEY DENIED ME.

Anonymous — Fri, 08 Aug 2014 05:00:15 GMT

Hi turbo1,

Yes I call him and we started the application over the phone, then I sent all the paperwork to him and it was for an FHA loan with 3.5 percent down here in Ohio. He did mention that he had to wait on the "underwriters" for approval. BUT after speaking with him, he sent the email back to them about what do they mean 3 active tradelines when I already have them, so I'll wait till next week to call. He's on vacation now......

Re: I DONT UNDERSTAND WHY THEY DENIED ME.

Anonymous — Fri, 08 Aug 2014 05:07:54 GMT

Sarahcmgreen

The bank is KEY ONE BANK, they are the ones telling me that I need 3 tradelines, and then the loan officer is telling me "OH if you open a credit line with us and for 1000 loan paying 90 a month we can have that as a active tradeline"..... unreal. I went to the bank first before going to the realtor thinking that after I would be approved for the loan, the realtor would take me more serious about the home I want, but Iam going to have to go to the realtor first then. And all my credit cards and personal loan are being paid monthly, so yes I have a balance.

Re: I DONT UNDERSTAND WHY THEY DENIED ME.

Anonymous — Fri, 08 Aug 2014 05:14:40 GMT

@ShanetheMortgageMan wrote:
If the 2 Cap 1 cards, NTB credit card, and Springleaf loan all report to credit and are currently open then that is 4 active trade lines. Have the Cap 1 & NTB been used within the past 12 months? Some lenders want there to be activity on at least 3 trade lines in the past 12 months, although most lenders are fine if there isn't.

Sometimes lenders just get a little confused, I am dealing with an underwriter who calculated commission income at a lot less than I did, but once it was explained how I arrived at my calculation the underwriter agreed. Perhaps your loan officer just needs to explain things and it'll be straightened out. Keep us posted.

Hi Shane, yes they are all open and the credit cards have been used recently. I hope it does get straightened out, he did send them back the email asking what they meant by 3 active tradelines. We'll will see next week. The funny thing is, 2 years ago I applied for a mortgage with Chase and they approved it so fast, but I backed down because I felt I wasnt ready, and I was in worse credit shape than Iam now. AND now applying with KEY BANK, I am having issues. Maybe I'll try going back to Chase...

Re: I DONT UNDERSTAND WHY THEY DENIED ME.

Anonymous — Fri, 08 Aug 2014 05:16:42 GMT

@dreamer2014 wrote:
I'm no expert but based on the information provided and recent experience applying for a mortgage, I would shop around. Just my 6 cents.

Hi dreamer, I agree lol, I'll see what I do this month.