Hello to everyone reading this. I recently went through a very disappointing time while getting approved for a home loan. I would appreciate any suggestions, advise, or just input.
This is what happened.....
At the beginning of May a neighbor of mine referred me to a realtor that they worked with. I called him and he got me in contact with a guy he works with regularly to see if I could get pre-qualified before I looked for a house. Let me say that I had a good handful of collections on my credit. But, he pre-approved me with the contingency that I pay off a judement; by which I did. He pre-qual would also expire after30 days (May 27). I found a house, signed a contract, got a home inspection. Needless to say, it pretty much failed. The inspection cost me $259. There was a lot of things that the inspector found that turned not only myself away, but my realtor as well. My realtor told me he had a great house he wanted me to look at. It was just what I was looking for so I placed a bid and signed another contract June 2nd. The seller accepted my offer. So I figured I was on the road to accomplishing purchasing my first home. I figured, so what...I have to get another pre-qual. Nothing changed on my credit report in a month. I got an inspection on house #2...was working with the seller to fix a couple things. Because I used the same inspector, he cut me a deal and charged me $209. I then paid the earnest fee of $200 to my realtor. Then the bomb was dropped......
My loan man called me one day to tell me that the FHA guidelines/rules changed and that he found something on my credit report that popped up within the last 12 months and that I had to get it paid to qualify again. Mind you, this item he was referring to was on my credit report the whole time and said he "must have missed it". He told me I needed to get it paid and also provide him with documentation of 3 bills I have paid for 12 months that were not late more than 30 days. I asked him several times to verify that if I paid this collection, that we would be good to go. He assured me to have faith and he would make it happen. So I paid off the item off my credit report $340 and provided him with the documents. Two days after I paid the collection, and provided him with the documents he requested, he informed me I was denied. Talk about falling into total depression. I'm a single Mom who works full time. I had already used my tax rebate check to pay off the judgement. So I'm looking at just under $2000 I paid in cleaning up my credit and fees.
So...here I am...still in a contract with house #2. Trying to get financed. I've talked to 3 different companies and they are in shock that I even got approved to begin with due to me having collections on my credit. My realtor put me in contact with another loan officer, and I just today provided her with all the documents she requested to take to the underwriter because I was not automatically approved.
That is my sad...long...story.....Not only am I discouraged, but depressed, and broke.
Any thoughts, suggestions, or advise?
