topic Re: Navy Fed Approval in Mortgage Loans

Navy Fed Approval

UpAndComing74 — Thu, 14 Jan 2021 23:04:37 GMT

Is this a legit approval or just a piece of standard paper?

Can I celebrate? @kberly69

Re: Navy Fed Approval

Anonymous — Thu, 14 Jan 2021 23:21:47 GMT

Yes and yes. It's a legitimate first step that identifies you to seller's as a serious buyer. Now your paperwork has to endure the underwriting process. In the meantime, manage your credit diligently.

Re: Navy Fed Approval

sxa001 — Thu, 14 Jan 2021 23:25:27 GMT

While you aren't out of the woods until you close, and your rate can change until your lock it in, I do think it is is okay to celebrate that important step at this point. You have what you need to start home shopping.

Re: Navy Fed Approval

dragontears — Thu, 14 Jan 2021 23:50:04 GMT

@UpAndComing74 wrote:
Is this a legit approval or just a piece of standard paper?

Can I celebrate? @kberly69

Technically it is not an approval it is the preapproval for the specific property listed but it does mean you have passed the first hurdle in getting a mortgage. Congratulations

Re: Navy Fed Approval

UpAndComing74 — Fri, 15 Jan 2021 00:13:45 GMT

lol.. Endure? Underwriting can kick it out? Or is the paperwork just have to match what I've told them(income, BK, etc etc) and we keep rolling?

Re: Navy Fed Approval

dragontears — Fri, 15 Jan 2021 01:07:48 GMT

@UpAndComing74 wrote:
lol.. Endure? Underwriting can kick it out? Or is the paperwork just have to match what I've told them(income, BK, etc etc) and we keep rolling?

Well people have been denied the day of closing before (for example final credit check showing new accounts and blowing DTI) so mortgages aren't really completely approved until they are funded lol

Re: Navy Fed Approval

UpAndComing74 — Fri, 15 Jan 2021 01:11:46 GMT

Lol.. Gotcha. Well I won't be doing anything silly like that. I'll just be paying off a car, a student loan, and hopefully getting a CLI on the Navy card and close out the subprime Credit One and Merrick cards!!!

Re: Navy Fed Approval

sxa001 — Fri, 15 Jan 2021 01:33:51 GMT

@UpAndComing74 wrote:
Lol.. Gotcha. Well I won't be doing anything silly like that. I'll just be paying off a car, a student loan, and hopefully getting a CLI on the Navy card and close out the subprime Credit One and Merrick cards!!!

I would be very careful on any CLIs, I think Navy does an SP for CLI's and I know I did a couple of SP CLI's in the year leading up to buying the house but I wouldn't recommend anyone do the same. I would avoid closing any new accounts. Paying off debt is fine, and maybe closing accounts is technically fine especially if you have at least 3 cards but I wouldn't want to risk anything, personally.

Re: Navy Fed Approval

newmomnewme — Fri, 15 Jan 2021 01:37:57 GMT

@UpAndComing74 Congrats on your approval. If you don't mind sharing, what was your MMS and DTI when you applied?

Re: Navy Fed Approval

UpAndComing74 — Fri, 15 Jan 2021 01:39:53 GMT

Oh ok! Noted! Ill leave it be.. it's just that I have 11 cards and I only use 3. The other ones are all kept at Zero... They are really trash cards that helped me rebuild. Not to mention they charge me an monthly fee!

Re: Navy Fed Approval

sxa001 — Fri, 15 Jan 2021 01:43:16 GMT

@UpAndComing74 wrote:
Oh ok! Noted! Ill leave it be.. it's just that I have 11 cards and I only use 3. The other ones are all kept at Zero... They are really trash cards that helped me rebuild. Not to mention they charge me an monthly fee!

If you have 11 cards, it probably will be okay but honestly I would just wait a little bit longer and maybe even ask your Loan Officer just to be sure. I am no expert with this stuff, I am just paranoid

Re: Navy Fed Approval

UpAndComing74 — Fri, 15 Jan 2021 01:45:24 GMT

@newmomnewme wrote:
@UpAndComing74 Congrats on your approval. If you don't mind sharing, what was your MMS and DTI when you applied?

Not a problem! I applied 1/12 and my MMS is 712, my DTI is 42% and I am 4 years and 2 days post Chapter 7 discharge.

Re: Navy Fed Approval

newmomnewme — Fri, 15 Jan 2021 01:47:55 GMT

Sweet!!! @UpAndComing74 Congrats again!

Re: Navy Fed Approval

Anonymous — Fri, 15 Jan 2021 13:06:52 GMT

Yes, indure. The "Conditional Approval" is akin to an acceptable first date that leads to a second. Show up late or do/say something stupid, and subsequent dates are in jeopardy...you get the picture. With the exception of smartly paying down debt (there's a method to the madness that can be quite counterintuitive to us laypeople), doing "anything" w/the credit file that got you the "Conditional Approval" would be like dyeing your hair to a secondary color...bye, bye potential love interest.

Re: Navy Fed Approval

UpAndComing74 — Fri, 15 Jan 2021 14:35:33 GMT

That's an awesome illustration. Both of them! I understand. I'll just pay down my student loans and installments and leave everything else be!! Thank you!!!!

Re: Navy Fed Approval

lira — Fri, 15 Jan 2021 17:07:21 GMT

Nice! What was your mortgage middle score when they pre-approved you?

Re: Navy Fed Approval

UpAndComing74 — Fri, 15 Jan 2021 17:20:11 GMT

@lira wrote:
Nice! What was your mortgage middle score when they pre-approved you?

712. Originally a Caution with DU but compensating factors (time on job, etc etc) gave an approval

Re: Navy Fed Approval

Anonymous — Fri, 15 Jan 2021 17:29:49 GMT

@UpAndComing74 wrote:
Is this a legit approval or just a piece of standard paper?

Can I celebrate? @kberly69

Looks like you got some answers to your questions - just gonna add a 'Congratulations!' to you. 😊

Re: Navy Fed Approval

Anonymous — Fri, 15 Jan 2021 23:33:45 GMT

You're welcome, but just wanted to pass on one final piece of advice. Respectfully, just chill and internalize the fundamentals found in these forums…you’re on the correct road, now just choose the right path.

As I alluded to earlier, the intricacies of the FICO algorithms are something to behold. There are actions that “seem” intuitive and “should” correlate to higher scores that accomplish just the opposite and drive scores down (DTI reduction, yes, but unseen secondary/tertiary effects on scores). Pay off/close a $10K installment loan (car, student, other) only to see your FICO mortgage scores drop 6-12 points. Make a routine $70 credit card payment and see your score go up 6 points w/a single bureau. And you find yourself waiting weeks to learn that your grand, common sense idea had the opposite effect of what you intended. I “tried” a couple, what made sense to ME, solutions only to be taken to the woodshed with, yet another, **bleep** moment when I received my monthly scores.

What I’ve learned in recent months, and this is supposition at its best, FICO mortgage scores are highly sensitive to bankcard/credit card debt. To that end, and as suggested earlier, your energy/focus is best centered on two things: the individual utilization thresholds of each bankcard; AND the aggregate utilization threshold of your bankcards; or as I call them…the Eights (28%, 48%, etc.). Target credit card balances that will drop you beneath a threshold. This approach, and severely curbing my Canali and Zegna tastes, has my middle mortgage score up 50 points (764) in 4 months and sitting pretty for my final pull next month.

I say all this to say you’re well on your way and have a commitment from an exceptional lender that services the world’s finest customers. You’re good, just don’t try to outsmart the oh so esoteric FICO math…it will have you staring at the chalkboard like a clueless 5th grader. Good luck!

Re: Navy Fed Approval

UpAndComing74 — Fri, 15 Jan 2021 23:58:08 GMT

Now that I can rest with! You have miracously said all that I needed. What you don't know is I am a nuts and bolts guy. I have to know the equation and the what fors to stuff or it drives me crazy! I will

print this response and as soon as I get the urge to promote my FICO or study the algorithm I will read it again. Navyfed has my back for now. I only need 1 more INQ from the builder so I can have competing rates. Other than that, as my individual and aggregate util is <1%..I shall garden and hopefully by next pull I would have gained 8 points for next tier. But if not.. as you say.. I'm on the right track. Just Chill.. Noted!