A bit confused on a 'DENIAL' for qualifying for FHA (or any mortgage)

[Kozmo]

Whoever reccommended Wells Fargo...please don't.

They are awful to have a mortgage with. Trust me I used to be a housing counselor...and the stories I would hear are out of this world.

[cappucino24]

Hey Imandy,

You're right..what I received was a "Credit Score Information Disclosure". The word denial is not stated, however, the loan officer stated I needed to get to a 640 in order to qualify. I assumed that meant I didn't. Hence the purpose of my original post..I'M CONFUSED! lol..She hasn't returned my calls which has me feeling jaded about the company itself. I just wanted some questions answers since she stated prior to pulling my credit that her company would 'walk me through' the credit process if I hadn't got approved.

I'm called her back today..and no return call. I called the office in Pennsylvania that's listed on the disclosure and was told I should speak with her, their office didn't have my information. I'm in Florida. I'm going to call tomorrow because she I'm not liking how all this went down..just because I'm new to buying a home doesn't mean I was born yesterday.

Thanks for pointing that out!

[StartingOver10]

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@cappucino24 wrote:

Hey Imandy,

You're right..what I received was a "Credit Score Information Disclosure". The word denial is not stated, however, the loan officer stated I needed to get to a 640 in order to qualify. I assumed that meant I didn't. Hence the purpose of my original post..I'M CONFUSED! lol..She hasn't returned my calls which has me feeling jaded about the company itself. I just wanted some questions answers since she stated prior to pulling my credit that her company would 'walk me through' the credit process if I hadn't got approved.

I'm called her back today..and no return call. I called the office in Pennsylvania that's listed on the disclosure and was told I should speak with her, their office didn't have my information. I'm in Florida. I'm going to call tomorrow because she I'm not liking how all this went down..just because I'm new to buying a home doesn't mean I was born yesterday.

Thanks for pointing that out!

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Also remember that loan officers are individuals with their own skill set. Some know what they are doing and others don't (to put it bluntly).

So even if you have a good lender, you could have an individual loan officer that is not skilled, knowledgeable or professional.

It is critically important to have a good loan officer because it will make the difference between a smooth purchase and a nightmare. I have some excellent loan officers I work with all the time if you want their contact info, PM me. (I'm a Realtor in Fl and am careful to work with only the best LO's that know their underwriting inside and out)

[cappucino24]

Good Morning All!

Ok so here's the update...the loan officer returned my call this morning (thankfully before I called her back because I had some choice words about her service). She said I wasn't denied, HOWEVER, since I'm so close to the qualifying score for the lowest interest rates (like what Booner suggested) I might as well clear the collection. Only one collection to clear!!! It's only for a $1000. She also stated she was going to send me a good faith estimate on my price range since I don't have a specific house chosen yet. I do qualify for the other programs but those are sub 640 and have higher interest rates. She also suggested if I find a property check the taxes..if the owner purchased 5 years ago, more than likely their taxes are higher...basically that will be factored into my mortage.

I feel a little better about her now..since I made myself clear. She somehow thought she sent me the info and had spoken to me more in depth.

OAN: I have been lurking the boards since Jan/Feb...I had a average FICO of 580, used the resources in the rebuilding forum and now I'm at the scores I have now.. Less than 5 months!

[cappucino24]

Thanks StartingOver, I most definitely will take you up on that offer!

[Anonymous]

Try to get your score up by 5 more points so your mid is 640. As for the other comments like serious delinquency, and balance too high. I think those comments will show up as long as these things happened within the last 7 years. I too had these comments show up despite my score being 720. Mine showed

Serious Delinquency - Even though the last time I was deliquent was almost 6 years ago</p>

Proportion of loan balance to loan amount is too high - Again this was the case about 2 years ago, my current utilization is 2% but this still showed up.

Too many inquiries last 12 months - Mine was similar to yours, 10 inquiries for the same car loan at the end of last year

Anyways I closed yesterday, The lender will not care about these remarks unless they happened recently (less than 1 year), the inquiries can be easily explained away which I wrote a simple letter stating the car dealership ran my credit through a bunch of diff banks. For now the most important thing is to raise your score by at least 5 points, maybe more if you can for cushioning.

[cappucino24]

Hey Cloud9 (love that name!..makes me smile.)

Yep that's what I plan to do...it's refreshing to know I'm not alone..that this is all apart of the homebuying game!

[imandy]

Sorry for being a glass half empty kinda guy but I just do NOT trust LO's. I would still be leery of this person if they just "suggested" that you pay off your collection. This collection will NEED to be paid off before you get into an FHA loan either now or as contingency of closing. There are some exceptions for medical and less than $1000 but all otehrs it's not a suggestion it needs to be paid. You might as well start working on getting any disputes removed as well even if they're paid.

It's almost like LO's think they're going to hurt our feelings telling us honest information and always sugar coat everything. I hate hate HATE that! I've wore big boy pants for a long time now.

[turion65x]

Can anyone Recommend a good LO or lender that can assist me in FHA Please PM Thanks in advance 

[cappucino24]

Update** I kicked the initial loan officer to the curb! I really didn't like her vibe and now working with a new LO annnddd a realtor! Yes I said it I am officially house hunting!! My new LO told me to begin house hunting about a week ago while my credit score was at 635..he said by the time I finish getting all the paperwork together I should be at a 640 and he was right..as of 8/25 I received a myfico alert that my EQ was a 640!! ..so now my middle score is a 640.

I will keep you all posted with my house hunting process..already it's a little frustrating because I can't find a nice house in the city I desire to live in within my budget of $200k...investors are buying the cheaper houses in cash and the nicer houses have several contracts at a time. My goal is to close this year.