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BCU Mortgage Refi/Clear to close! (4yrs after chp7) 🥂🤩

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CookieMonster1
Regular Contributor

BCU Mortgage Refi/Clear to close! (4yrs after chp7) 🥂🤩

I’ll start this story at the end of one loan app and continue on the beginning to end of another. I also want to thank @oorhett for his detailed HELOC journey which inspired me to work with BCU. 🙏🏽

1/23/24 DH and I app’d for a HEL with BCU. In one of the fastest and smoothest processes ever, we got all the way to "clear to close” on 2/13 before the title company notified BCU that we already had a Texas section A(6) loan so HEL was not possible!😩😩😭 BCU folks were as crushed as we were it seems. Only option then was full cash out refi.

 

Sooo…Refinancing it is!

2/13 - Submit new application for $415K Mortgage ($100K cash out)Cash out Refinancing. Able to work with same Loan Officer and Processor once new app submitted. They will use and upload all the docs we submitted for HEL

2/14 - Recieved new document disclosures. Signed and returned.

2/14 - Notified LO of new cash out amount of $115K (to cover loan closing costs) for full refi mortgage amt of $430K 30yr Conventional @7% LTV 45%

2/15 - Received new updated loan estimate disclosures via Docusign. Signed and returned.

2/16 - Full appraisal on property done.

2/20 - Received appraisal report - came in $100K ($955K) higher than previous Desktop appraisal used for HEL which was showing $850K

2/21 Loan Processor has following requests from underwriting:

  • Please sign/date the TX disclosure form
  • Please provide a copy of most recent/ February mortgage statement and a payoff letter good through 03/11/24
  • Please confirm you would like to escrow for taxes and insurance.
  • Please provide a Letter of Explanation or an email describing the reason for the most recent (3 in 90 days) credit inquiries:  (for BAXTER AND EQUIFAX January inquires please include a note explaining that all January inquiries were related to your previous/now cancelled home equity loan application with BCU)
  •  Please provide copies of most recent/updated statements accounts being paid at closing from loan proceeds (needed to do this to get DTI down)

2/23 - Loan Processor needs:

A copy of most recent statement for my account associated with 2023 1099-R

Proof of 2024 HOA dues payable 

BCU will be reaching out to USAA to update mortgagee clause on homeowner policy

2/25 - We upload all requested info above.

2/29 - Asked BCU for update and found out USAA had not yet updated mortgagee clause. We call them to see if we could help. Got a person who handled it. BCU receives the pdf doc. from USAA

2/29 - Cleared to close!! Schedule appt for Title company signing for March 7th.

2/29 - Received email from BCU Closer with instructions for docusing disclosures and settlement docs. Completed

3/7 - Signing at Title Company/Notary

3/12 - Loan Funded/Cashout $$ wired to account/CC paid via fedex overnight checks to us to mail

 

17 Days from submission to approval/clear to close!

24 Days to Signing

29 Days to Fund

 

Other DP’s:

Chp7 bk - 4yr since discharge was January 2024

Kept our home through bk but didn’t reaffirm the mortgage so it disappeared from CR but we always paid on time.

DTI - was 42% before paying off cc at closing. Got it down to 36% (DH also got a nice raise)

Income: $185K

FICO Mortgage scores: 705

Texas has stringent laws around 2nd mortgages (HELOC/HEL) that we nor BCU were aware of until the end of first process. We had done a cash out refi 7yrs ago and simply did not realize the implication. Texas Section 50 A )( 6 mortgage: You become ineligible for a home equity loan (HEL) or home equity line of credit (HELOC) once you have cash-out refinancing in place.

Hope this helps someone!



Bk 7 Filed 10/2019/Discharged 01/2020 Rebuild well underway! Grateful to this Community for sharing knowledge and support.
3 REPLIES 3
Kasuito39
Frequent Contributor

Re: BCU Mortgage Refi/Clear to close! (4yrs after chp7) 🥂🤩

Congrats on your approval. What bureau did they pull for HEL? 

Message 2 of 4
CookieMonster1
Regular Contributor

Re: BCU Mortgage Refi/Clear to close! (4yrs after chp7) 🥂🤩

Thank you @Kasuito39! They pulled TU only for the HEL, then all 3 (using Factual Data) for the full refi. 



Bk 7 Filed 10/2019/Discharged 01/2020 Rebuild well underway! Grateful to this Community for sharing knowledge and support.
Message 3 of 4
Kasuito39
Frequent Contributor

Re: BCU Mortgage Refi/Clear to close! (4yrs after chp7) 🥂🤩

BCU communication level combined with the sense of urgency equals excellent customer service. I'm keeping a close eye on BCU so I can dive in when I'm ready. For now, I just have the checking and savings. Thanks for sharing the bureau details.

Message 4 of 4
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