Mortgage Process *Update*

[Anonymous]

Since this isn't going fast enough I figured I'd let everyone else know where I am in the process. Feel free to chime in with where you are or just general advice.

Some background: My middle mortgage score being used for loan is 673. We are under contract on a home for 120k. Its in my name only because my husband is self employed. I make 40,000 a year including commission. 20k a year with out my commission. W-2 employee. 1 year at this company but 3 yrs in same industry/position.

We are paying asking price with 5k in seller concessions and 18k down. We have 55k in savings, so after money down and closing costs we'll have 35k in reserves. *Changed to put 24,000 down to meet dti requirements since my commission can't be used*

I have two charge offs on my report. Both 6 years old totaling about 2500. No other baddies. I have a car payment of 336 a month. No other debt. Using New Penn Financial for loan. I feel good about my application based on my lo's confidence. We're going fha btw.

Now for the timeline.

*Scheduled closing 5/6

3/20 looked at the house
3/21 made offer 115k plus 5k in closing costs
3/22 offer accepted no counter
3/23 contract signed by all parties
3/25 completed full mortgage application and signed all paperwork
3/28 appraisal and inspection done
3/30 appraisal came back 14k over sales price. No repairs needed (home is fairly new, built in 2003)
4/1 went ahead and sent April bank statement to stay ahead of the game
4/2 loan suspended for dti

4/5 issues fixed loan resubmitted
4/11 received loan commitment

4/17 title came back

4/25 got a new processor to move things along. Got closings disclosures at 7 pm

4/27 received word that closing is trying to be scheduled for Friday the 29th

5/2 closing scheduled for 5/5 at 9:30am

5/5 went into closing at 9:30am homeowner by 11:00am. 

Now we've just got to move......

[Anonymous]

4/2 loan file suspended due to high dti. Sent my info to a back up lender in case denial became official. Also offered more money down to original lender
4/3 still no word as to whether I'm denied or not. Need loe for 2 six year old charge offs though. Sent loe for both same day
4/5 file no longer suspended with 30k down instead of 20k I'm not a dti issue. I say 30k is fine. Alternate lender still on ice just in case though. Original lo feels confident again. He says we should still close on time. Asking for insurance docs to put with my file. Both loe for charge offs were acceptable as well

[StartingOver10]

Can I ask if you applied to a bank or not?  Sounds like you made application with one of the big box banks that move slower than molasses.  

Who is your lender?

If you have made application with a big box bank (like Wells Fargo or Chase or BOA or similar) there is no way they will be able to close by the scheduled closing date. I know I keep saying the same thing over and over, but I see it regularly since I am a Realtor. The big box banks just can't compete with the mortgage bankers or brokers when it comes to efficiency.   Even before TRID they couldn't hit a 30 day close except in very special, exceptional cases IME. 

If you are using a mortgage broker or a correspondent lender then it is very possible to meet the date but they would have to speed up the pace a bit from now forward.

[Anonymous]

Starting Over---- her scheduled closing date is 5/6, a full month away!   The lender has her appraisal and a complete file.  Will it really take 30 days at this point for this to be ready to close?  I would think with all the info. on hand, even a big box lender could get it down in a couple of weeks.

Is this totally niave of me?  =0)

I am going through a broker, scheduling closing is May 10, the appraiser isn't even scheduled to come until April 20, only 20 days before closing, and my mortgage broker assures me its still an acceptable timeline to expect a 20 day close after appraisal. 

[Anonymous]

Startingover I'm with a direct lender. New Penn Financial. Havent heard mich about them but LO has been helpfyl so far and keeps me updates.

I saw all the warnings not to go big bank on here before applying. My on ice lender is a broker though. I've got 30 days but if things get dicey I'll be ready to put my back up to work.

[StartingOver10]

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@Anonymous wrote:

Starting Over---- her scheduled closing date is 5/6, a full month away!   The lender has her appraisal and a complete file.  Will it really take 30 days at this point for this to be ready to close?  I would think with all the info. on hand, even a big box lender could get it down in a couple of weeks.

Is this totally niave of me?  =0)

I am going through a broker, scheduling closing is May 10, the appraiser isn't even scheduled to come until April 20, only 20 days before closing, and my mortgage broker assures me its still an acceptable timeline to expect a 20 day close after appraisal. 

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I understand that she has a complete file.  I would hope that the big box lender could do it in a couple of weeks from this point, but it isn't my experience. They run late. Not every time, but a majority of the time. It is bad enough that I have to warn sellers on the front end when an offer is presented on one of my listings that the file is likely to close late whenever a big box bank is involved. When they changed to centralized type processing and underwriting, the communication just dissappeared between the departments. It is better for the buyer/borrower to know so they can make appropriate arrangements in advance. IME the big box bank LO won't say anything until a couple of days before closing if it is going to be late.

Your file should be fine as you are using a mortgage broker - they move much faster. There really is no comparison in the process between a mortgage broker and a bank.

[Anonymous]

Eileen where are you. Our appraisals turn around quick here. He ordered it expecting two weeks and they did it the same week! It shocked me because I've seen the stories of the appraisal holding up an approved app's closing

[StartingOver10]

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@Anonymous wrote:
Startingover I'm with a direct lender. New Penn Financial. Havent heard mich about them but LO has been helpfyl so far and keeps me updates.

I saw all the warnings not to go big bank on here before applying. My on ice lender is a broker though. I've got 30 days but if things get dicey I'll be ready to put my back up to work.

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Good news for you: New Penn Financial is not a big box bank 

They originate, underwrite and fund their own loans so they are correspondent lenders (mortgage bankers) sometimes referred to as non-bank lenders. 

[Anonymous]

Startingover thank you for the insight. I heard big banks were a no no and I've got a complicated file (everyone says this, I know). There isn't much info on New Penn around the web though. Hopefully I will get to leave them some good reviews after this.

[Anonymous]

*Update*

4/7 approved with condition to payoff my car (already budgeted and factored in) and a clear title. LO says we should be OK from here as long as the title is fine and my credit doesn't change. I feel like I should be more excited, but I can't until I hear the words "clear to close"