topic Re: Please help all mortgage experts? in Mortgage Loans

Please help all mortgage experts?

Anonymous — Wed, 31 Mar 2010 09:04:42 GMT

Okay, I live in NYC and my sister lives in Easton, PA. She's currently renting a house for $900 a month and I'm also renting in NYC. I want to buy a house but it's not going to happen anytime soon in NYC. I was talking to my sister and she said they have houses selling for $50-60K where she lives and basically she wants to own a home but her credit is messed up right now. I was thinking I should try to get a house and then have her pay the mortgage and hopefully in a few years real estate price goes up and the house would worth more than I got it far.. basically I just want to know if I would be able to qualify for something like this..,, plus If I do this I get that $8000 tax credit I believe.

Salary: $46000 + improving every 4 months until I reach $65000 in 12 months

monthly Debt:

Car loan: $279 - 4yrs remain

Personal Holiday Loan: $102/ 2X month $3300 balance pays off in december

Credit Card debt: total min payments about $100

Credit report: TU have one charge off schedule to fall off April 2011 only bad thing on my credit reports

Fico: TU (698 January 2010), EQ 736, EX 741 (feb 2009)

I can have a $5000 downpayment + closing cost.

Thanks all..

Re: Please help all mortgage experts?

llecs — Wed, 31 Mar 2010 10:58:43 GMT

Do you think you can pay both the rent in NYC and the mortgage if she's unable to financially pay?

Re: Please help all mortgage experts?

Anonymous — Wed, 31 Mar 2010 16:22:05 GMT

Oh Yes I can afford that.. I was going to have her pay me and I personally pay the Mortgage each month so as not to mess up my credit. I punch in the numbers and it says a mortgage payment would be around $600 a month so I'm really thinkng about it but I'm worried about that chargeoff

Re: Please help all mortgage experts?

DallasLoanGuy — Wed, 31 Mar 2010 16:29:28 GMT

Buying her a house would be an investment loan. 20% down.

Re: Please help all mortgage experts?

Anonymous — Wed, 31 Mar 2010 17:31:42 GMT

I'm not per-say buying her a home I'm buying it for myself so I can build some equity it's just that she'll spend most of the time there. But my question is will my 6yr chargeoff which should be 7yr chargeoff be a problem.

Re: Please help all mortgage experts?

Lel — Wed, 31 Mar 2010 17:41:36 GMT

I think what DLG is saying is that since you're not going to be an owner occupant of the house, then it would be considered an investment property, and thus would require a larger down payment.

That charge off is pretty old, and shouldn't pose a problem for approval. Don't try to dispute it any more; open disputes can hold up your mortgage application.

Re: Please help all mortgage experts?

Anonymous — Wed, 31 Mar 2010 18:03:52 GMT

@Lel wrote:
I think what DLG is saying is that since you're not going to be an owner occupant of the house, then it would be considered an investment property, and thus would require a larger down payment.

That charge off is pretty old, and shouldn't pose a problem for approval. Don't try to dispute it any more; open disputes can hold up your mortgage application.

I didn't know this, and I am expecting to go the the lender next week. I disputed an account on all there where my balance and credit limit were incorrect. How long should I wait?

Also, I disputed a few collections last year that came back verified, but on my EX report it still says "Account is disputed my consumer". Is this a problem? If so, can I request that EX remove these comments from my report?

Thanks,

Jelly

Re: Please help all mortgage experts?

DallasLoanGuy — Wed, 31 Mar 2010 18:17:31 GMT

old collection likely not an issue.

dont mess with it.

if lender wants it paid, come back here and let us know.

many lenders will not require it paid.

Re: Please help all mortgage experts?

Lel — Wed, 31 Mar 2010 18:27:40 GMT

@Anonymous wrote:

@Lel wrote:

I think what DLG is saying is that since you're not going to be an owner occupant of the house, then it would be considered an investment property, and thus would require a larger down payment.

That charge off is pretty old, and shouldn't pose a problem for approval. Don't try to dispute it any more; open disputes can hold up your mortgage application.

I didn't know this, and I am expecting to go the the lender next week. I disputed an account on all there where my balance and credit limit were incorrect. How long should I wait?

Also, I disputed a few collections last year that came back verified, but on my EX report it still says "Account is disputed my consumer". Is this a problem? If so, can I request that EX remove these comments from my report?

Thanks,

Jelly

Here's a thread that discuss the possible effects of open disputes:

"Account information disputed by consumer" comments keeping me from getting Mortgage

Was the CC balance and credit limit affecting your score to such a large degree that it necessitated a dispute? Sometimes CCCs are slow to report the most updated information (e.g. Amex used to always be a month behind). Some CCs don't report CLs (e.g. my Visa Signature card doesn't report a CL). But to me, these are minor issues that don't impact my score very much, so I don't do anything about them.

Re: Please help all mortgage experts?

Anonymous — Wed, 31 Mar 2010 18:44:33 GMT

@Lel wrote:

@Anonymous wrote:
@Lel wrote:
I think what DLG is saying is that since you're not going to be an owner occupant of the house, then it would be considered an investment property, and thus would require a larger down payment.

That charge off is pretty old, and shouldn't pose a problem for approval. Don't try to dispute it any more; open disputes can hold up your mortgage application.
I didn't know this, and I am expecting to go the the lender next week. I disputed an account on all there where my balance and credit limit were incorrect. How long should I wait?

Also, I disputed a few collections last year that came back verified, but on my EX report it still says "Account is disputed my consumer". Is this a problem? If so, can I request that EX remove these comments from my report?

Thanks,

Jelly

Here's a thread that discuss the possible effects of open disputes:

"Account information disputed by consumer" comments keeping me from getting Mortgage

Was the CC balance and credit limit affecting your score to such a large degree that it necessitated a dispute? Sometimes CCCs are slow to report the most updated information (e.g. Amex used to always be a month behind). Some CCs don't report CLs (e.g. my Visa Signature card doesn't report a CL). But to me, these are minor issues that don't impact my score very much, so I don't do anything about them.

The answer is yes. EX had been reporting my credit limit much less than in really is. The credit limit is $2500, but they were reporting it as $1500. I asked for and received the increase to lower util, so as to raise my score for my loan application. As I mentioned, that was last year, and it is still not correct. EX is my lowest score.

Thanks

Re: Please help all mortgage experts?

Anonymous — Wed, 31 Mar 2010 18:45:51 GMT

What constitutes an "open dispute"?

Re: Please help all mortgage experts?

DallasLoanGuy — Wed, 31 Mar 2010 18:55:22 GMT

@Anonymous wrote:
What constitutes an "open dispute"?

you disputed item and it is not yet resolved.

lenders see a consumer saying they 'dispute' item they require the borrower prove the dispute is resolved.

Re: Please help all mortgage experts?

Anonymous — Wed, 31 Mar 2010 19:06:27 GMT

So if I disputed and it came back verified, but the comments say "account disputed by comsumer", this should be a 'closed/resolved' dispute, right? So I should be okay, or should I still ask the CRA to remove the comments?

Re: Please help all mortgage experts?

Anonymous — Wed, 31 Mar 2010 19:41:43 GMT

I just looked at my EX report, and some accounts have the 'account disputed by consumer' comments, and others have ' This item was verified and updated on Apr 2008' or This item was verified and remains unchanged'. Are these last two comments okay? Sounds to me like it would mean that the dispute has been resolved and closed.

Am I right?

Thanks,

Jelly

Re: Please help all mortgage experts?

DallasLoanGuy — Wed, 31 Mar 2010 20:16:39 GMT

have cra remove comments because automated underwriting cannot distinguish the difference between open disputes and consumer comments.

will be a head ache later

Re: Please help all mortgage experts?

Anonymous — Wed, 31 Mar 2010 21:48:56 GMT

@DallasLoanGuy wrote:
have cra remove comments because automated underwriting cannot distinguish the difference between open disputes and consumer comments.

will be a head ache later

Which comments should be removed? The 'account disputed by consumer' comment or the 'This item was verified and updated on Apr 2008' and 'This item was verified and remains unchanged' comments? The latter two comments don't say anything about the account being in dispute. These state that the account was previously in dispute, but has now been verified or updated and the dispute is closed, right?

Re: Please help all mortgage experts?

Anonymous — Wed, 31 Mar 2010 22:51:32 GMT

huhu, well back to my original thread..

Called some mortgage guy and gave my info and unfroze TU and EX and just did credit secure and see that those reports were pulled by a mortgage company EQ was not pulled. The thing is that he has yet to call me back and it's going on 3hrs since I gave him those information. Isn't preapprovals instant?

Re: Please help all mortgage experts?

Anonymous — Wed, 31 Mar 2010 23:04:06 GMT

update:

Mortgage guy just called back I'm preapproved for $110K he said credit is excellent and should have no problems.

I'm having second thoughts now though.. do I really wanna do this because I may want to buy a house myself in the coming future.

Re: Please help all mortgage experts?

DallasLoanGuy — Thu, 01 Apr 2010 00:00:29 GMT

@Anonymous wrote:
@DallasLoanGuy wrote:
have cra remove comments because automated underwriting cannot distinguish the difference between open disputes and consumer comments.

will be a head ache later

Which comments should be removed? The 'account disputed by consumer' comment or the 'This item was verified and updated on Apr 2008' and 'This item was verified and remains unchanged' comments? The latter two comments don't say anything about the account being in dispute. These state that the account was previously in dispute, but has now been verified or updated and the dispute is closed, right?

get rid of the the 'customer disputes' part.

i will be talking to Kroll Factual Data about this soon. And I will try to talk to Fannie Mae as well.... This is a fuzzy issue that I guess is up to me to get to the bottom of....

But, for now, all of you reading this..... just remove all of the dispute comments and STOP DISPUTING before applying.

If you are disputing your credit report..... You aren't ready for a loan.

Re: Please help all mortgage experts?

Anonymous — Thu, 01 Apr 2010 02:36:49 GMT

@DallasLoanGuy wrote:

@Anonymous wrote:
@DallasLoanGuy wrote:
have cra remove comments because automated underwriting cannot distinguish the difference between open disputes and consumer comments.

will be a head ache later

Which comments should be removed? The 'account disputed by consumer' comment or the 'This item was verified and updated on Apr 2008' and 'This item was verified and remains unchanged' comments? The latter two comments don't say anything about the account being in dispute. These state that the account was previously in dispute, but has now been verified or updated and the dispute is closed, right?

get rid of the the 'customer disputes' part.

i will be talking to Kroll Factual Data about this soon. And I will try to talk to Fannie Mae as well.... This is a fuzzy issue that I guess is up to me to get to the bottom of....

But, for now, all of you reading this..... just remove all of the dispute comments and STOP DISPUTING before applying.

If you are disputing your credit report..... You aren't ready for a loan.

Hi Dallas,

If I am not ready for a loan now, I don't know if I will never be. I started out with 497 EQ score. Now I am at 617, with more points to come once all balances show zero after I have paid off 7 accounts. My income is at least $15K higher and I have funds in the bank. I only disputed the collections because I did not know why they were on my CR. I don't know why it still says 'consumer disputes account information'. I disputed these accounts in 2008. I will call and see if I can get these comments removed. Hopefully, I won't have any trouble.

I really feel that I am ready, but of course I am not a loan professional. I will plan to meet with my LO and see where I stand. If I need to wait, I'll wait. Buying a house is definitely not something to rush.

Thanks for all of your input and I will keep you posted on my progress.

Jelly