PenFed Hard Pull?

[Dalmus]

So here's an interesting turn of events...

I applied for the auto loan last week.  Got an SM that said "congrats, you're conditionally approved.  Just send us your two most recent paystubs.  Okay, sent the paystubs (which matched what I said on the application).  Got the SM AND and Email that said the loan was conditionally approved, pending they see the title via a color photo.  Obviously they have to make sure the LTV is correct.  Woohoo.  Gotta find a car now...

Wake up the NEXT day, and I have a NEW SM that says "Sorry, your loan isn't approved."

I get that I didn't pass whatever criteria they wanted... but don't tell me all I need to do is find a vehicle with the right LTV to complete the loan and then decide 5 minutes later that there is no loan.  If I'm on the bubble for some reason, tell me the loan is being reviewed, not that its approved. 

If I had actually found a car based on their approval and then suddenly was denied, how embarassing would that be?  Very annoying.  I just got an email wanting a customer satisfaction survey.   Definitely going to fill it out...

Ended up going with NFCU, and they made the process super simple.   "Here's a blank draft.  Find your car, fill out the draft with the dealer, take your car home."

[Cookiegrabber]

Wow, that is dumb. Good thing you had NFCU behind you.

[CreditCuriosity]

---

@Dalmus wrote:

So here's an interesting turn of events...

I applied for the auto loan last week.  Got an SM that said "congrats, you're conditionally approved.  Just send us your two most recent paystubs.  Okay, sent the paystubs (which matched what I said on the application).  Got the SM AND and Email that said the loan was conditionally approved, pending they see the title via a color photo.  Obviously they have to make sure the LTV is correct.  Woohoo.  Gotta find a car now...As it looks like your credit is good based off your other cards.  More info would be helpful.   Thanks.. Have an autoloan through them at 2.49 and the least painful thing possible and just recently took out a personal loan among the CC's and locs of credit I have with them.. My EQ 09 was 740 with so really old lates/paid co's that will fall off this year.

Wake up the NEXT day, and I have a NEW SM that says "Sorry, your loan isn't approved."

I get that I didn't pass whatever criteria they wanted... but don't tell me all I need to do is find a vehicle with the right LTV to complete the loan and then decide 5 minutes later that there is no loan.  If I'm on the bubble for some reason, tell me the loan is being reviewed, not that its approved. 

If I had actually found a car based on their approval and then suddenly was denied, how embarassing would that be?  Very annoying.  I just got an email wanting a customer satisfaction survey.   Definitely going to fill it out...

Ended up going with NFCU, and they made the process super simple.   "Here's a blank draft.  Find your car, fill out the draft with the dealer, take your car home."

---

Just curious what was the reason for denial as auto loans are pretty easy to get with any lender and your scores look good as it is a secured debt basically meaning they can repo it if you don't pay..  DTI issue?

[Dalmus]

---

@CreditCuriosity wrote:

---

@Dalmus

---

Just curious what was the reason for denial as auto loans are pretty easy to get with any lender and your scores look good as it is a secured debt basically meaning they can repo it if you don't pay..  DTI issue?

---

"Insufficent income for amount of credit requested"

"Excessive obligations in relation to income (overextended)"

"Based on verified income"

I wonder if there was a typo when they entered my income from my paystubs.

My DTI is 35% if you remove my current car payment (and one of the application steps asks about current loan and if you are trading in that vehicle).  That includes my mortgage and all credit cards.

Even with a $341 current payment, my DTI is 43%.   That's slightly above the "ideal" 40% for an auto loan, but at worse should be "a little higher than the best available rate" territory, not "you look like a deadbeat" territory!

Apparently I SHOULD have used my Wife's income as well.  For the .05% difference in the rate, a recon isn't worth it to me, though.

Again, if I'm denied, I'm denied, I get it... I'm more irritated that they looked at my credit, said I was approved, had me send in paystubs, then told me I was approved again, then change their mind.

[CreditCuriosity]

---

@Dalmus wrote:

---

@CreditCuriosity wrote:

---

@Dalmus

---

Just curious what was the reason for denial as auto loans are pretty easy to get with any lender and your scores look good as it is a secured debt basically meaning they can repo it if you don't pay..  DTI issue?

---

"Insufficent income for amount of credit requested"

"Excessive obligations in relation to income (overextended)"

"Based on verified income"

My DTI is 35% if you remove my current car payment (and one of the application steps asks about current loan and if you are trading in that vehicle).  That included my mortgage and all credit cards.

Even with a $341 current payment, my DTI is only 43%.

Apparently I SHOULD have used my Wife's income as well.  For the .05% difference in the rate, a recon isn't worth it to me.

Again, if I'm denied, I'm denied, I get it... I'm more irritated that they looked at my credit, said I was approved, had me send in paystubs, then told me I was approved again, then change their mind.

---

Thanks ya a DTI issue.. I believe Penfed lets you include your wife's income?  If so that should help your DTI quite a bit.. PenFed and DCU have some of the best auto loan rates out there so might want to recon that and add her income, just a thought as your other credit looks good just an income issue using your only.   PenFed has tightened up recently and are more strict that they use to be, but additional income certainly could overcome the reason they gave you if they allow her income as well.  How much was the loan you were going for as well?  Assume it would of been higher payment?

[Dalmus]

---

@CreditCuriosity wrote:

Thanks ya a DTI issue.. I believe Penfed lets you include your wife's income?  If so that should help your DTI quite a bit.. PenFed and DCU have some of the best auto loan rates out there so might want to recon that and add her income, just a thought as your other credit looks good just an income issue using your only.   PenFed has tightened up recently and are more strict that they use to be, but additional income certainly could overcome the reason they gave you if they allow her income as well.  How much was the loan you were going for as well?  Assume it would of been higher payment?

---

 I was only looking for a preapproval, so I asked for up to $30K.

When I looked at the rates on Friday, PenFed's posted rates were slightly better than NFCU's except for 72 or 84 month rates.   I just looked now, and they are significantly higher across the board.  Not worth the recon at this point!

At the rates last week, if I wanted to borrow the full $30K for 72 months, the resulting payment would put me up to $460, or 45% DTI.  But at the time I got my last car loan, the payment put me close to 50% DTI, so I didn't even think I'd have a problem there.   Live and learn, right?