I just had to say thanks and share...
My husband and I officially applied for pre-approval on Monday (yay!) and the information I gained on this board (and the Rebuilding Your Credit board) has been absolutely invaluable in making the process smooth and easy. First of all, my credit scores are at now approvable. Second, I think my LO was actually a little creeped out by how much I knew and how informed I was, haha But he was also extremely impressed! He also said that my letter of explanation for my student loan issues was the best he had ever read
The loan will officially be submitted to underwriting tomorrow and we should have an official decision on pre-approval in 5-7 days. There's definitely a chance that we could be denied (darm SLs!!) but I'm optimistic and hopeful. It's stressful waiting, but also very exciting!!
By looking at your score, you are over qualify for a mortgage loan. DTI is all that's matter at this point. Good luck to you!
Our back-end DTI is fine, right around 40%, but I have some unpaid charged-off SLs (that I currently pay monthly on a payment plan) that may cause a denial. They charge-offs happenned shortly after graduation because I graduated in the midst of the recession and couldn't find a job. Luckily, I now have a great, high paying job and can pay on the SLs montly with ease, but there's a high balance (private law school loans) so I can't completely pay them off immediately.
I wrote a letter of explaination and my LO feels pretty good about the loan because everything else in our file looks great, but you never know... we could still be denied because of the SLs. My fingers are crossed!
You are welcome, and good luck with the process.
Awesome Job. You've come a long way in only a year. Your scores improved signifantly. Good luck to you. I am working my credit this year in hopes to purchase a home of my own next year. Good luck and keep us posted.
sml1997 - It can totally be done! The biggest issues for me were a the SLs, a handful of late payments and high utilization %. There's not much I can do about the SLs, but I sent GW letters like a mad-woman and, over time, had a lot of success getting those misc. lates removed. Also, I paid my utilization down from over 100% to about 48% and saw a big jump from that. Good luck!
We were pre-approved!! Our lender was able to overlook the unpaid charged-off SLs (we are in payment arrangements with them and pay monthly) due to all of the other positive factors in our file. And the head UW actually got involved so we feel very comfortable that the decision will stand so we can obtain final approval prior to closing (my biggest fear is having a lender back out last minute!).
So excited and we should have a "dig date" for our new house soon!!
How does your loan process goes?