Loan "Approval"

[Booner72]

We are under contract for short sale - every day that goes by i get more and more certain that I will not be approved due to my credit score and credit history.  BK in 2005 with medical collections after the BK.  One collection reported 1/2010 for a phone bill that we didn't pay in 2006 (QWEST SUCKS).  (AFNI SUCKS).   When she ran my scores 5/14 my FICO EQ was 607, but MYFICO said it was 600,  It has gone up on MY FICO to 610, then down to 609 when I disputed.  Why would my scores be different from LO's and MYFICO?

This is what the letter says from my LO.  Does this mean that I will get approved by UW?

I'm pleased to inform you that your FHA 30 yr loan application yas been pre-approved by_____.  Your credit report has been obtained and reviewed.  This approval is for a purchase price of $110,000.00  There a few conditional items that need to be taken care of first befowe we can give final approval and one of the items it that you pay off the Judgment to ________.  I've listed the amount of monies you will need in order to get into this Owner Occuped home loan:

2500 to pay off the judgment on your credit report

3850. for Down Payment.  3.5% of the purchase price.

8081.60 is for the closing costs

Please the the enclosed Good Faith estimate and approximate loan cost illustration for a litt more clarification of the fees and down payment.

This pre-approval is subject to no material changes to your financial condition or credit worthiness.  It is also subjct to review of the complete appraisal, preliminary title report and acceptable purchase contract.

Please contact me if you have any.....

______________________

  Would she put this on their letterhead w/o knowing for sure the loan would go through?  What happens if my score doesnt get to 620 or 640?  What happens to the $500 in ernest money that is sitting in escrow (actually sitting in a check that hasn't been cashed at the realtors.

Thanks everyone for your time in reading this.

[MEE2Too]

Hello,

What I believe has happened is that all of your information has been ran through the automated underwiriting system and those are the conditions that must be met prior to closing, since that was on your pre-approval letter that is what the system is telling your loan officer what is needed to push the loan through. Once your file has been submitted to the actual underwriters they may ask for more conditions outside of those just listed. As far as your credit score, whatever credit score they ran during your pre-approval I believe is the score that they use to determine if they want to lend you the money during this whole process. If your loan officer didn't seem alarmed with your credit score when they ran your credit I'm assuming that it might be ok. I'm going through the homebuying process myself and I hope my answer provides you with a peace of mind and Good Luck with your new home purchase!

[Booner72]

Thanks for your support.  I will add, though, that she did a simulator and told me to pay A B and C - She said "We can get the loan with 620, but 640 would be better."

All collections are paid and judgment satisfied.  All collections older than 2 years (closer to 3) except the STUPID AFNI BILL..  That one is from 1/2010.

[ShanetheMortgageMan]

Ask how much of #6 did they do in The mortgage pre-approval process