Mortgage Application: DP and Reserves

[Anonymous]

We got Pre-Approved and had offer accepted. We don’t have much cash in the bank (about 3k). Husband starts new job next week. He got approved based off offer letter.

We will need $7-8k cash at closing and about $6k in reserves. So total $13-14k.

Husband is getting a $5k sign on bonus and base pay he’ll make $1440 a week. His boss already told him guys are putting in 10 hours overtime a week right now so that number will be higher.

We are set to close July 1. Our lender said we don’t have enough assets on the application. I just let her know we plan to have the cash needed by closing with earnings. I haven’t heard back from her but it’s now Friday evening so probably won’t till Monday.

Do you think this information is enough to proceed with the loan? We don’t have the money now but will by end of June based off what he’ll earn. We could’ve waited but we found a perfect house at an amazing price we had to jump on it.

We are working with a great seller so I think worst case we would have to push the closing date back a little so the bank can see we have the cash?

[Anonymous]

how much is the home you plan to purchase

[Anonymous]

$170k with seller paying $3k at closing
We are going conv with 5% down. Also have a local Closing Cost Assistance Program that pays 3% of loan amount so $4850.

[NC_Mtg_Loaner]

Your lender gave you a pre-approval letter, sent you shopping and then told you that you didn't have enough assets in the bank?

[Anonymous]

LO Pre-Approved us and gave us a commitment letter for a property we made an offer on. The offer was accepted. Now she is saying the application is incomplete because we didn’t add assets. I said we didn’t have any but plan to have cash needed at closing using paychecks coming in the next 2 months.

I probably won’t hear from them till Monday but that should be ok right?

[kc0039]

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@Anonymous wrote:
LO Pre-Approved us and gave us a commitment letter for a property we made an offer on. The offer was accepted. Now she is saying the application is incomplete because we didn’t add assets. I said we didn’t have any but plan to have cash needed at closing using paychecks coming in the next 2 months.

I probably won’t hear from them till Monday but that should be ok right?

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That's A LOT to of money in a short amount of time. You haven't figured in expenses. Why do you need reserves for a primary home? Score?

[Anonymous]

High reserves because we have a second home. It’s for sale but no contingency. 

Now LO is saying she’s having trouble getting our preliminary approval because there aren’t any assets. We gave her all this information BEFORE getting preapproved. After she gave us the commitment letter and told us it’s ok to make the offer now she says the assets are missing and since dti is high it is riskier.  I told her exactly what we had before. 

This is all causing so much stress. I wish we would’ve just got denied from

the beginning instead of having an amazing offer accepted on our dream home just fall apart. 

[Anonymous]

Well we are moving on to a different lender. After giving me the go ahead to make an offer and giving me pre approval she tells me now that we won’t get approved at 5% down and need about 13% to get approved. That’s a difference of about $8000 to $23000! I told her absolutely no we can’t do that and she has the decency to ask for family to help. I can tell she sounded remorseful that we won’t be able to move forward on our dream home because we would NOT have made an offer if we knew this before. She blamed the “investors”. 

We got another preapproval somewhere else so we will talk with them. 

Not giving up yet. 

We are working with a great seller who really wants to see us in this house. If we have to push closing back a little I don’t think it’ll be a problem. 

[Anonymous]

have you guys considered fha

[Anonymous]

That lender said FHA wouldn’t work because of my husbands almost one year employment gap.

The other lender we will see tomorrow got us FHA and conventional preapproval and said the gap is fine and they just need one pay stub and a short explanation letter.