topic Re: Bad Credit Mortgage Lender in Mortgage Loans

Bad Credit Mortgage Lender

Anonymous — Wed, 25 Oct 2017 13:00:39 GMT

I'm in the Atlanta area and found a home that I wanted to purchase. My credit score was 496. I found a bad credit mortgage lender that would do an FHA mortgage with scores as low as 500 if I put down 10% and my interest rate would be 5.25%. The loan agent had me pay off some things and rescored me in June. I was a 535 so I got prequalified and was able to go under contract (this is a new construction home). By September my middle score had increased to 596. I had the lender rescore me and now my down payment was only 3.5% with a 5% interest rate. I am scheduled to close this Friday. Last week I noticed my scores increased again. My middle score is now 626. I asked would my interest rate go down the lender said yes it should go down to 4.5 - 4.75% but he wouldn't know until they ran my numbers again. I an 48 hours away from closing and haven't received a closing disclosure statement yet. I called and asked what do I need to bring to closing and how much my payments would be. Everything is the same from when my score was 596. They didn't change my interest rate, instead they offered me a lender credit of $1250. I asked for the disclosure statement and he said it wasn't ready yet. My loan has been approved from underwriting and has made it out of audit and is now with the closing attorney. How could they do all of that without sending me a copy of the disclosure?? Are there lots of red flags here or is it just me? I should have switched lenders when I got my score high enough but I wanted to be nice and let the loan officer get the sale because when I first started looking he was the only one that gave me positive feedback that it could be done - that I could get my dream home. Now I'm feeling like he knows how bad I want this home and even knowing that my credit is now good enough to go to another lender I couldn't do it this late in the game so they're pretty much stringing me along. How soon do I have to refinance? Is it 3 months or 6 months?

Re: Bad Credit Mortgage Lender

Anonymous — Wed, 25 Oct 2017 13:07:56 GMT

The time frame to refinance is in your loan documents. Make sure to do the math on refinancing.

Is this a fixed rate loan or an ARM?

Re: Bad Credit Mortgage Lender

Anonymous — Wed, 25 Oct 2017 13:18:57 GMT

It's a 30 year fixed. The loan documents are what I'll receive at closing?

Re: Bad Credit Mortgage Lender

NC_Mtg_Loaner — Wed, 25 Oct 2017 13:21:13 GMT

A couple things to point out here:

1. Congratulations---very few folks make it from where you were to where you are now and where you are headed.

2. Congratulations again--it really shouldn't be under appreciated that you've succeeded in making these changes and achieving your results.

3. TRID - RESPA requires that you've received a copy of your preliminary CD at least 3 days prior to Closing or your Closing will be delayed--if you have not already received a preliminary CD, don't be alarmed--as long as you are 'sticking' with your current lender, you ought not to be worried because fees that you can't shop for are not allowed to increase by more than 10% so you should be able to look towards your LE to see your estimates of cash needed to close and you'll be in that ballpark unless you had additional inspections, more expensive insurance and closing attorney fees....

4. You still need to exercise a bit of patience--especially with what you are hoping to have changed---"repricing" your loan may require additional approval from the secondary department and they might only allow one change during the loan process so I only hope you haven't "started" the buying process too soon as you may still be stuck with credit data in your file from last month and not have the opportunity to act upon those recent changes within your credit profile.

5. Lenders are extremely busy so additional patience is often required when your file is "moving through the pipeline" and in this current stage... (often, as an LO we can't find more details or really reach out to our UWs whom we know are working on your file as well as 50 others who all deserve the same attention and are equally important)

6. Interest rates being offered have been on the rise in the last month or so due to the most recent positive news in the economic front and this could be slightly offsetting your ability to lock lower WHICH really isn't a big issue, in my opinion because you could now focus on BEATING the BANK by paying extra principle early and often on your loan once it's closed so that you can limit the amount of interest you pay over the life of your loan. (Just remember that any money you prepay on your mortgage should be considered as an investment and the real rate of return on this money is your loan's APR and in this economic climate where the market is up 30% in the last year and expected to continue growing IF tax reform is to fuel corporate America's global growth, you want to be certain your investments and assets are diversified)

.....whew, what else?

Congrats again!

Re: Bad Credit Mortgage Lender

Anonymous — Fri, 27 Oct 2017 03:16:07 GMT

Who is your lender?

Re: Bad Credit Mortgage Lender

me12345 — Fri, 27 Oct 2017 16:09:01 GMT

The answer to your question is 211 days...

You can do a "FHA Streamline" refinance after 210 days has past, that's how long before you can pull a new FHA Case Number after closing on your new loan.

The good news is that the "Streamline" refi does not have all of the "Hoops" to jump through, its NO credit qualifying and NO income qualifying....Just a credit pull for your scores.

Thanks,

Re: Bad Credit Mortgage Lender

Anonymous — Sat, 24 Mar 2018 02:13:23 GMT

I am in the same boat score wise. What was the name of your lender? I'm curious if they are licensed in PA.

Re: Bad Credit Mortgage Lender

Anonymous — Tue, 12 Jun 2018 01:20:16 GMT

May I ask who your lender is?

Re: Bad Credit Mortgage Lender

kc0039 — Tue, 12 Jun 2018 16:04:09 GMT

There are a lot of lenders here that offer 580 scores with additional guidelines from what you read

Re: Bad Credit Mortgage Lender

Anonymous — Tue, 19 Jun 2018 00:17:19 GMT

I live in the Atlanta area as well and I’m curious who the lender is.

Re: Bad Credit Mortgage Lender

homeloanexpert — Tue, 19 Jun 2018 12:35:17 GMT

Many of us lenders go down to 500 for FHA and VA. Let me know if you have any questions.

Re: Bad Credit Mortgage Lender

Anonymous — Tue, 26 Jun 2018 15:32:04 GMT

I am currently in Wisconsin and have been trying to pre qualify for a morgage loan with no luck. Cleaned up my reports to where there is only one collection (transunion I believe has none) my student loan which is under $4,000 my 3 credit cards that I have only had for 6 months or less all paid on time and in full every month yet I am having a hard time getting my middle morgage fico score over 588. I am in need to move asap and can not find one lender who does not require a mid score of 620 or higher.

Re: Bad Credit Mortgage Lender

Anonymous — Sun, 24 Feb 2019 15:16:30 GMT

I’m also looking for the name of your lender. Could you DM me it?

Re: Bad Credit Mortgage Lender

Reazon — Sun, 24 Feb 2019 21:58:00 GMT

Which 3 scores are used for the middle score that lenders use? Is it the FICO 8, or FICO 2 scores?
Thanks

Re: Bad Credit Mortgage Lender

Anonymous — Tue, 20 Aug 2019 23:55:58 GMT

What mortgage company do you work for?

Re: Bad Credit Mortgage Lender

Anonymous — Wed, 21 Aug 2019 01:19:40 GMT

@Anonymous wrote:
What mortgage company do you work for?

There are a couple out there. Our real estate firm gets e mail from several all the time. I think you can probably just google and find them

Re: Bad Credit Mortgage Lender

homeloanexpert — Sat, 24 Aug 2019 11:18:53 GMT

It's never too late to negotiate your rate. My company has a float down policy that whenever the credit changes for the better, we reprice the loan and offer the borrower either a lower rate or a higher lender credit. But that decision is always the borrowers, not the lender or LOs. You can request the pricing sheet so you can see for yourself what your options are.

Re: Bad Credit Mortgage Lender

Anonymous — Sat, 24 Aug 2019 12:00:06 GMT

Can you tell me what company you work for? I’m just trying to gather some resources. Maybe I’m googling the wrong thing.

Re: Bad Credit Mortgage Lender

Anonymous — Tue, 03 Sep 2019 19:09:27 GMT

@anaki92, who was your lender?

Re: Bad Credit Mortgage Lender

CreditInspired — Tue, 03 Sep 2019 20:19:47 GMT

@Anonymous wrote:
@anaki92, who was your lender?

Hi and welcome to MyFICO

The last time anaki92 posted was more than 2 years ago (October 2017). I suggest creating a new post with your specific question. Someone on the forum will respond.