topic Re: Update #3 - CLOSED today 12/20, SO HAPPY!!! Cautiously Optimistic in Mortgage Loans

Update #3 - CLOSED today 12/20, SO HAPPY!!! Cautiously Optimistic

Anonymous — Thu, 20 Dec 2018 18:58:01 GMT

Ok so......I applied for a mortgage loan this past Sunday and was pre-qualified. Worked out a deal on the new construction home with the builder and put down a $5,000 deposit. Between my realtor, my new home sales consultant and my loan officer, they ALL think I should have no issues getting loan approval.

My question is, what do some of the other mortgage professionals on here think?!?! Is it possible for some minute detail to cause me to be denied? Am I missing something that they might not be telling me?

Data Points as follows:

$100,000/Salary.

Middle score of mortgage score 606 (I have been rebuilding for about two years).

Home price of $295,000.00. Charlotte, NC area.

Going for FHA with 3.5% down. Loan officer quoted a 5% rate. I locked it....and have one opportunity for a float down prior to Dec closing.

No lates for right at 2 years.

6 CC and 2 auto loans (One auto loan was a cosign for my son....he literally just refinanced it in his own name last Friday).

CC utilization is down around 12% across the board....maybe even less.

I have roughly $2,500.00 in medical collections from a few years back that everyone tells me do not matter or count toward my approval.

They have all said to just pretend as if they aren't on my credit report through this process. I have offered to pay them...but they have told me not to.

Loan officer said my DTI is great...even with the 2 autos. I am still going to provide them with the paperwork showing the account now closed, once Toyota provides it to us (They are waiting on the new finance company to send them their check).

I have a BK7 from 2011....that did not include any real estate. It was simply a BUNCH of tax debt.

I have some late pays on my previous auto loan...but that was over 2 years ago as well. Like I said, no lates in about 22-24 months.

If I have left something important off that you may need to know to have a better idea of my situation, please let me know.

Thanks!

Re: Cautiously Optimistic

kc0039 — Thu, 11 Oct 2018 21:01:17 GMT

Sounds like a good deal. Keep us updated!

Re: Cautiously Optimistic

Anonymous — Thu, 11 Oct 2018 22:59:37 GMT

Will do. My loan officer said she was submitting it to the underwriter either tonight or tomorrow. She said it would come back within 5 business days.

Re: Cautiously Optimistic

Anonymous — Fri, 12 Oct 2018 20:59:02 GMT

Not much on this earth is worse than waiting for the underwriter in a home loan process. Best of luck!

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Anonymous — Mon, 15 Oct 2018 01:43:52 GMT

**UPDATE**

I received an email this evening from the lender stating that I am "conditionally approved" for the mortgage I am seeking.

I immediately emailed my loan officer....but it is Sunday evening and she is obviously spending family time. She's been awesome so, I'm sure I will hear from her tomorrow.

Anyway....glad to see that the process is trending in the right direction. Very curious to know what my "conditions" are. I will update again once I find out.

Starting to get a little more excited. 😊

Re: Cautiously Optimistic

Anonymous — Mon, 15 Oct 2018 18:14:07 GMT

Ok, so my loan officer reported the following conditions are:

1. Submit Nov and Dec bank statements - No big deal.

2. Provide evidence showing that the borrower does not owe any Federal, NC and SC states taxes.

I owed some Federal taxes from many years ago and ended up including them in my BK7 in 2011. The tax liens were on my credit report....but all tax liens were removed earlier this year. Does this mean I will have an issue with these?!?!

3. Provide copy of divorce decree and/or current court order document to show the terms and required payment amount for alimony/child support obligation.

I owe a total of $4,200 in child support arrears, which comes out of my paycheck automatically every week. They already knew about this. The original child support order is complete (my daughter is almost 22), I just have this last amount to pay and I have the documentation to substantiate it. So, this shouldn't be an issue either.

I am worried about the tax issue. Not sure what they are asking for or what the next steps are. Anyone with a similar tax/old tax lien issue!?!?!

Re: Cautiously Optimistic

CreditInspired — Mon, 15 Oct 2018 23:19:01 GMT

Did your lender have you sign a 4506T for 2016 and 2017 taxes filed? This is a request for transcripts, which goes directly from the lender to IRS.

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Anonymous — Tue, 16 Oct 2018 00:28:51 GMT

Yes. I actually signed release in disclosure docs for 2014, 2015, 2016 and 2017.

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Anonymous — Wed, 17 Oct 2018 17:06:27 GMT

Can anyone help with info regarding tax issues and loan approvals? If so, please reply here or inbox me.

I really need an experienced person to talk with about this.

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CreditInspired — Wed, 17 Oct 2018 17:57:27 GMT

From my personal experience, if you have no outstanding federal or state tax liens, everything should be good tax-related wise.

I was surprised that your back taxes could be I ncluded in your bankruptcy though. I think you should check bankruptcy papers just to confirm they were included. The last thing you want is a surprised tax obligation jumping out of the woodwork at the last minute.

Also, just an FYI, even if unpaid tax liens have been removed from credit reports, it could also appear somewhere else if a lender researched it, i.e., Lexis Nexis.

I don’t want to scare you but just wanted to make you’re aware of possible tax issues.

Re: Cautiously Optimistic

Anonymous — Thu, 18 Oct 2018 11:05:41 GMT

I did have a bunch of federal and state taxes included in my BK7. 100% sure, as they are listed in the BK documents I have on hand that were filed in the court system in 2011.

I also had 4 tax liens on my credit report.....2 federal and 2 state. All 4 either showed "paid" or "released", but they were supposed to stay on there for a period of time. But then the bureaus stopped reporting them across the board....and they were removed.

Re: Cautiously Optimistic

NC_Mtg_Loaner — Thu, 18 Oct 2018 12:58:03 GMT

Congrats.

Seems to me that you'll be fine. I am surprised that your credit score is as low as you stated but it's possible that you are getting ready to receive a reasonable 5-10% spike up in score once the most recent derogatory payments become > 24 months old as long as you keep your utilization ratios optimized.

Re: Cautiously Optimistic

Anonymous — Mon, 22 Oct 2018 11:51:22 GMT

@NC_Mtg_LoanerI do beleive that my score is so low because I have applied for and received approximately 4 new credit cards this year. Two as recently as two months ago. Also, I have inquires from car loans, credit cards, two different mortgage companies and credit union.

If I have any outstanding balances showing from the tax years they are looking into, would I be able to simply pay them and remain on track to close? Or do those balances showing up automatically deny me the loan? I do not think that I have balances, but it is possible I suppose.

wrote:
Congrats.

Seems to me that you'll be fine. I am surprised that your credit score is as low as you stated but it's possible that you are getting ready to receive a reasonable 5-10% spike up in score once the most recent derogatory payments become > 24 months old as long as you keep your utilization ratios optimized.

Re: Cautiously Optimistic

CreditInspired — Thu, 18 Oct 2018 18:28:13 GMT

@Anonymous wrote:
I did have a bunch of federal and state taxes included in my BK7. 100% sure, as they are listed in the BK documents I have on hand that were filed in the court system in 2011.

I also had 4 tax liens on my credit report.....2 federal and 2 state. All 4 either showed "paid" or "released", but they were supposed to stay on there for a period of time. But then the bureaus stopped reporting them across the board....and they were removed.

I think you're in good shape.

Re: Cautiously Optimistic

Anonymous — Mon, 22 Oct 2018 15:51:43 GMT

Ok so, is my understanding correct that, if I have any tax balances and I pay them, I should be good to go?

I'm sure you all know the mortgage industry much better than I. My loan originator has been MIA for over a week.

I'm just trying to prepare myself for the conversation I am sure I will have with her.

Thanks

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Anonymous — Fri, 26 Oct 2018 01:36:19 GMT

Any word yet?

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Anonymous — Fri, 26 Oct 2018 17:42:08 GMT

Today, I provided my loan processor with lien releases that I received from the IRS for all of the tax years they asked about. Hoping this satisfies their needs, but I do not know yet. I have fulfilled all other conditions that have been presented to me so far.

Just awaiting further instruction on what else I may need to do. I do know that they want my Nov and Dec bank statements....but those obviously are not ready yet.

So, I wait. And it is VERY hard. Being a first tiem home buyer and not knowing how sideways this could go, makes for a seriously painful and anxious time. Ughhh.

Re: Cautiously Optimistic

Anonymous — Mon, 29 Oct 2018 21:45:19 GMT

Curious to follow what happens with your loan. I am in a very similar situation, except mine is a judgment rather than a tax lien, but it has been satisfied as well. I am waiting on conditional approval, and it really sucks. It's only been five days....feels longer.

Re: Cautiously Optimistic

Anonymous — Wed, 31 Oct 2018 12:46:08 GMT

**UPDATE**

As of yesterday afternoon, my mortgage loan is back to the underwriter for final processing.

According to my loan processor, I have provided the proper paperwork to clear all conditions given initially and should have an answer by tomorrow or Friday. Also, per my loan processor, I asked how he felt about my file and receiving final approval. He indicated that he felt very good about it.

I am so extremely nervous right now. This is a major step in my life that....a few years ago....I would have never thought possible. I changed my financial outlook and my maturity in regards to my finances about two years ago and......here I am.....hoping to close on the single biggest investment opportunity I will ever make.

I will give another update when I hear more.

Stay tuned!!! :-)

Re: Cautiously Optimistic

Anonymous — Tue, 06 Nov 2018 12:04:09 GMT

**UPDATE AGAIN**

My mortgage loan is back from the underwriter and I just cannot seem to get past the past tax issues. I do not understand why either.

According to my loan processor, the underwriter is asking for additional proof that I do not owe taxes. Just to remind you all, I filed BK7 in 2011. Several years of back taxes were included in the BK7. The back taxes were created due to not properly running the financial side of a business, which I no longer have. As a result, tax liens were placed against me. Fast forward to today.....I have multiple tax lien releases in hand, which I have already provided to the underwriter....stating that the tax lien years they have inquired about (I actually gave them more than they asked for), have been released and no longer a liability or no longer could attach to my mortgage. Yet, the underwriter wants additional proof. What other proof am I suppsoed to provide?!?! A tax lien release IS the proof that the taxes are no longer an issue. I am at a loss as to what I need to do now. I am fearful that, I cannot provide a specific document as to those taxes not being a liability anymore. Everything I research and see, states that the lien release is the only real proof......but the underwriter wants additional proof.

Everything else is perfect with my loan, just need Nov and Dec bank statements and proof of funds to close, which I will easily have......but I am now very worried that I will get denied, simply because I cannot provide the "additional" proof they are asking for.

This is SOOOOO frustrating. Buying a house is supposed to be one of the most memorable and happy financial decisions in a persons life, yet the financing side, if you do not have a squeaky clean credit profile, is excruciating, to the point of my wife and I being very upset and stressed to the max. We simply do not know what to do now. My loan processor is confused too. He is running it up the chain to his operations manager.

topic Re: **Update #3** - CLOSED today 12/20, SO HAPPY!!! Cautiously Optimistic in Mortgage Loans

**Update #3** - CLOSED today 12/20, SO HAPPY!!! Cautiously Optimistic

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topic Re: Update #3 - CLOSED today 12/20, SO HAPPY!!! Cautiously Optimistic in Mortgage Loans

Update #3 - CLOSED today 12/20, SO HAPPY!!! Cautiously Optimistic