NAVY APPROVAL THEN DENIAL?

[DoctorManhattan]

@Anonymous That could well be the case. Working with some other banks now. I will update soon. 

[VALoanMaster]

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@VALoanMaster My mid score is 659. My wife is 700+. Called before applying and they told me a lot of lenders bumped it to 660 because of COVID but that they didn't have a minimum score and that I was fine to apply with that. 

I received more info after this post. Another NAVY FED employee reached out to me and he said that the computerers underwriting system found me credit worthy, but that they personally didn't and that this is why I received a pre approval letter. 

He also mentioned that I should monitor my scores and that when I'm at 680 to apply again. Which basically is telling me they're looking for a 680 mid score. Which is higher than most VA lenders. 

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@DoctorManhattan,

NFCU initially pushed their minimum credit score requirement to 700 across the board and they completely dropped FHA loans.

The sad thing is it seems like the right hand doesn't know what the left hand is doing over there. That was also a pretty good indicator of how the rest your process was going to go.

The fact that you received an approval through an Automated Underwriting System is a good sign.

[fixing_it]

Had this happen to me and it really screwed us up. 

NFCU had financed our last home and a couple of years ago I had made some late payments on my credit card I had with them. Balances were paid but inevitably lates on the card. 

I received a pre-approval letter and put an offer on the home. A couple of days later I get a call telling me the pre-approval was rescinded because underwriting found the lates I had on the card with them. It was pretty devasting because I had paid my balances down to get my scores up so as a result had less than the 20% needed for a conventional loan. 

Had to pull our offer and scramble to find a less expensive home because my scores were not above the 680 mark yet. What a pain the whole process was. This happened just as COVID was hitting so I'm thinking their underwriting got a lot more strict. 

Not happy about it all since I always paid my mortgage on time with them previously and it caused us to let go of our first choice home. 

[VALoanMaster]

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@fixing_it wrote:

Had this happen to me and it really screwed us up. 

NFCU had financed our last home and a couple of years ago I had made some late payments on my credit card I had with them. Balances were paid but inevitably lates on the card. 

I received a pre-approval letter and put an offer on the home. A couple of days later I get a call telling me the pre-approval was rescinded because underwriting found the lates I had on the card with them. It was pretty devasting because I had paid my balances down to get my scores up so as a result had less than the 20% needed for a conventional loan. 

Had to pull our offer and scramble to find a less expensive home because my scores were not above the 680 mark yet. What a pain the whole process was. This happened just as COVID was hitting so I'm thinking their underwriting got a lot more strict. 

Not happy about it all since I always paid my mortgage on time with them previously and it caused us to let go of our first choice home. 

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Why didn't you just find a new lender?

[DoctorManhattan]

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@fixing_it wrote:

Had this happen to me and it really screwed us up. 

NFCU had financed our last home and a couple of years ago I had made some late payments on my credit card I had with them. Balances were paid but inevitably lates on the card. 

I received a pre-approval letter and put an offer on the home. A couple of days later I get a call telling me the pre-approval was rescinded because underwriting found the lates I had on the card with them. It was pretty devasting because I had paid my balances down to get my scores up so as a result had less than the 20% needed for a conventional loan. 

Had to pull our offer and scramble to find a less expensive home because my scores were not above the 680 mark yet. What a pain the whole process was. This happened just as COVID was hitting so I'm thinking their underwriting got a lot more strict. 

Not happy about it all since I always paid my mortgage on time with them previously and it caused us to let go of our first choice home. 

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Yes kind of sad that not everyone is on the same page at Navy. Some say this score others say this score. I applied because they said I was good to go with a 659 Mid score. Then after I get pre approved I get told that they're looking for minimum 680 (if that). It would've been nice to know this beforehand. 

[fixing_it]

@VALoanMaster  

The home we were looking at was in jumbo loan territory. So without 20% most lenders say "no way" unless you have a score in the 700s. I was short of that so had limited options. Trust me I tried and unfortunately now have almost 30 inquiries on my report with all of my attempts. 

We ended up finding something just under what is considered jumbo instead and went with another lender. 

What is frustrating however is that if I had known NFCU wasn't going to finance me I would have left my debts as they were and used the cash I had for a down payment. My income was high enough to have sufficient DTI but without that down payment I was stuck. 

[DoctorManhattan]

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@VALoanMaster wrote:

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@fixing_it wrote:

Had this happen to me and it really screwed us up. 

NFCU had financed our last home and a couple of years ago I had made some late payments on my credit card I had with them. Balances were paid but inevitably lates on the card. 

I received a pre-approval letter and put an offer on the home. A couple of days later I get a call telling me the pre-approval was rescinded because underwriting found the lates I had on the card with them. It was pretty devasting because I had paid my balances down to get my scores up so as a result had less than the 20% needed for a conventional loan. 

Had to pull our offer and scramble to find a less expensive home because my scores were not above the 680 mark yet. What a pain the whole process was. This happened just as COVID was hitting so I'm thinking their underwriting got a lot more strict. 

Not happy about it all since I always paid my mortgage on time with them previously and it caused us to let go of our first choice home. 

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Why didn't you just find a new lender?

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Yeah I feel for that guy, but I am doing this as we speak I have two mortgage brokers working to find something for me. One told me their bank is only looking for a 620 and that's after speaking with an underwriter. Crossing our fingers. 

[VALoanMaster]

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@fixing_it wrote:

@VALoanMaster  

The home we were looking at was in jumbo loan territory. So without 20% most lenders say "no way" unless you have a score in the 700s. I was short of that so had limited options. Trust me I tried and unfortunately now have almost 30 inquiries on my report with all of my attempts. 

We ended up finding something just under what is considered jumbo instead and went with another lender. 

What is frustrating however is that if I had known NFCU wasn't going to finance me I would have left my debts as they were and used the cash I had for a down payment. My income was high enough to have sufficient DTI but without that down payment I was stuck. 

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Oh, that makes sense. So was it a VA jumbo or just a straight jumbo?

[VALoanMaster]

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Yeah I feel for that guy, but I am doing this as we speak I have two mortgage brokers working to find something for me. One told me their bank is only looking for a 620 and that's after speaking with an underwriter. Crossing our fingers. 

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@DoctorManhattan ,

With your 657 score, & an AUS approval, I wouldn't have any trouble closing your loan.

[DoctorManhattan]

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@VALoanMaster wrote:

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Yeah I feel for that guy, but I am doing this as we speak I have two mortgage brokers working to find something for me. One told me their bank is only looking for a 620 and that's after speaking with an underwriter. Crossing our fingers. 

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@DoctorManhattan ,

With your 657 score, & an AUS approval, I wouldn't have any trouble closing your loan.

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Okay send me details, but I'm going to wait for these people to get back to me. They should have an answer in a couple of hours.