topic Re: Did This Mortgage Lender Lie To Me? in Mortgage Loans

Did This Mortgage Lender Lie To Me?

Anonymous — Fri, 23 Apr 2021 22:04:23 GMT

Hello all! This forum has been amazingly helpful. I want to start by giving you my credit "stats":

FICO 5, 4, 2: 629 | 610 | 584
- **I believe the 584 is because my oldest student loan accounts dropped off, shortening my credit length**
Zero Collections
Average Age 9 years/7 months on first two; 6 years/4 months on lowest
Zero late payments in the last 11 months
Revolving accounts:
- Furniture Store Card: 933/1550 | (paid this to 633 today, hasn't reported yet)
- Cap 1 Platinum: 178/1150 | (paid this to $110, hasn't reported yet)
- Cap 1 Quicksilver: 66/ 850 | (paid this to $0, hasn't reported yet)
- Credit One Bank: 57/ 650 | (paid this to $0, hasn't reported yet)
- Merrick: 946/1000 | (charged off, I paid this off in full this week, hasn't reported yet)
- Cap 1 Buy Power: 2/ 300 | (paid this to zero, hasn't reported yet)
- Citi 2221/2800

I have scheduled payments for the month of may to equal $1047. This will bring my utilization to 25%, fyi.

My gross monthly income is $6600.00. My current debts are:

$445 personal loan
<$100 Credit Card loan
$600 student loan (but in forebearance at the moment)
My rent is $1085, but the mortgage I hope to get one day would be around $1450 with tax/insurance

Now, for my actual Question:

I spoke with a private mortgage lender today. He pulled my report, even though I had told him what my mortgage scores were; he seemed surpirised that I had my "real" mortgage scores, and they were, indeed the same. He told me the following:

I needed to "make more money' (confusing to me, since my DTI is pretty great)
That I would not get approed for ANY mortgage until I get above 700 scores, and anyone telling me otherwise is lying
That I need to get used to renting for a while

This is not the same message I received from Rocket Mortgage, or another private lender (neither of which actually pulled my report, but whom I did give the above information to). They told me that once I hit the 12 month with no late payments and get my utilization under 30%, I should be good, and Rocketmortgage gave me a score of 660 to hit for a conventional loan. I can't do an FHA, because I am on an income-based repayment plan for my student loans -- just FYI.

Is this person correct that "nobody is getting a mortgage with a credit score below 700"? Do you think he just wanted to process an easy/straight forward application and simply wasn't really interested in my business? I've been, of course, worrying about this all day.

Thank you!

Re: Did This Mortgage Lender Lie To Me?

Cowboys4Life — Fri, 23 Apr 2021 23:05:31 GMT

He is so far from correct it isn't even the same universe. I closed on my mortgage (VA loan) in March and middle score was 660. My gross income was slightly higher than yours and my DTI 29% with 1% utilization and I had NO issues getting a loan. I used Loan Depot. Locked in a rate of 2.56% before things got crazier and could not be happier. Shop around. This clown doesn't deserve your business.

Re: Did This Mortgage Lender Lie To Me?

Anonymous — Fri, 23 Apr 2021 23:11:40 GMT

Okay. Phew. Thank you. I was so upset that I honestly cried all afternoon. He made me feel like I was absolute scum. I just don't understand what benefit he had from even telling me this? Oh well.

Re: Did This Mortgage Lender Lie To Me?

tooleman694 — Sat, 24 Apr 2021 00:46:41 GMT

Are you sure about your DTI? What is the total balance of your student loans? Why are they in deferment?

Re: Did This Mortgage Lender Lie To Me?

DebtStinks — Sat, 24 Apr 2021 02:08:42 GMT

I agree that you were mislead, at least to an extent. Most conforming (not scum lenders) need you to NOT have any lates within the last 12 months...and even then will scrutinize things a bit more, especially with your projected mortgage being up to $365/month more than your rent. In addition, FHA mortgages (I know you said you want to avoid) are the same across the board on mortgage insurance since it's not score based....Conventional, on the other hand, is very focused on mortgage insurance premiums in relation to your middle mortgage score. MI with a middle mortgage score below 620 can be VERY expensive. There are many programs to avoid MI/PMI on Conventional loans and the most common way is to put 20% down.

Questions that will likely be asked:

Do you have any savings? If so, from where and how long has the money been in savings? If not, have you been actively paying down your debts by AT LEAST the difference in the amount your mortgage will be compared to your current rent? (underwriters will likely address this to help ensure their confidence that you will be able to handle the new mortgage once your other debts are paid down/off)

Do you have any lates on rent ever? Last 12 months?

Any money in retirement account(s)?

TIme on current job or time on current job and in same field?

This is not to stress you out or concern you....more just to prepare you for things that will likely come up in mortgage application and underwriting process so you can be prepared and not blindsided.

Feel free to ask me any questions you have by tagging me in the post or sending me a DM. Both myself and MANY MANY others on here are willing to help and/or VERY knowledgable when it comes to mortgages.

Best of luck!

Re: Did This Mortgage Lender Lie To Me?

Anonymous — Sat, 24 Apr 2021 02:07:56 GMT

Yes, I'm sure about my DTI. Long story short, my husband had a stroke (at age 40), last year, so he hasn't been able to work. The income of 6600 monthly is my income alone. We are in process of applying for SSDI for him. In the meantime, I let my student loans go into the covid deee deferment so I could focus on paying some medical stuff, paying down my credit cards (I was at like 102% utilization before I paid everything down to what it is now). I also sold my car to get it out from under my name/get rid of the debt. 600 bucks is what my student loan is monthly on my REPAYE (income based) plan. I realize for my loan to go through (conventional), I'll need to take it out of deferement. I have like 190k in student loans.

Re: Did This Mortgage Lender Lie To Me?

Anonymous — Sat, 24 Apr 2021 02:15:12 GMT

Yep. I'm pretty confident about that. I have been renting the same house for 10 years and have not been late ever. I have receipts for every payment. I have been in my main job for 4 years and my adjunct teaching job for 5 years. Next month will be 12 months since my last late payment on anything.

I am being gifted the down payment, I have a 401k with probably 10k in it. Have about 4K in savings.

I've been throwing money at debt. Paid off almost 4K in the past two months.

Re: Did This Mortgage Lender Lie To Me?

4sallypat — Sat, 24 Apr 2021 15:37:05 GMT

Mortgage brokers are a dime a dozen.

Don't let one get you down - since you had a recent pull, get other mortgage lenders to give you their estimate.

Here's my recent quest for 14 day HPs from these brokers:

Matt The Mortgage Loan (You Tuber), offered $520K max loan @ 3.25% plus 0.5% point
Better Mortgage (online) with Fannie Mae desktop UW, offered $600,000K max @2.875% and no points - $600 closing refund.
Union Plus Mortgage (online) w/ union membership required, FM desktop UW, offered $575,000 @ 2.875% and no points - $1500 closing refund and $200/month reduction in PMI!
Cash Call Mortgage - won't touch us - they only do 10%+ down loans.

Re: Did This Mortgage Lender Lie To Me?

Anonymous — Sat, 24 Apr 2021 16:28:29 GMT

Thank you! Another lender I asked about this said "WOW. No, that is not the case". I've sent an email to the parent company's complaint department and cc'd the rude mortgage guy, and also sent the following email directly to him:

You didn't help me actually. I was going to let this go, but I've actually been upset about this all day. Your response to me was not what I've been told by other lenders.

It's totally fine if you don't want to do business with me, but the statement that I "wouldn't get a mortgage without a score above 700" is not meshing with what I've heard from several other sources on the lender side, and borrowing side, most notably, by my parents who just recently took out a mortgage. I don't know what changed between my initial conversation with you and when I sent in the application and driver's license.

In addition, your recommendation to simply "go make more money" and to "get used to renting" were both incredibly rude and unrealistic. I make a great income for [City], and my DTI even with my $600 student loan payment sits at 37%.

I'll just continue with other avenues and with the strides I've made so far. I'm so sorry if you feel that I was not an "easy" loan and if I wasted your time.

[My Name]

Re: Did This Mortgage Lender Lie To Me?

Anonymous — Sat, 24 Apr 2021 18:12:31 GMT

Gee, If your income isn't high enough for him I wonder what he would have said to mine at half that! How insulting, I mean surely there was a more polite way to decline you buisness.

Re: Did This Mortgage Lender Lie To Me?

Anonymous — Sat, 24 Apr 2021 19:37:30 GMT

Right. I was like "how much do you expect me to make in this low-cost midwest town as a mid-30-year-old?". lol! I think he just didn't want to deal with it, probably wasn't very profitable for him, and I had a pretty strict mortgage amount of 225k tops since I want to stick with what I can afford on my salary alone. Oh well.