Ok so my fiance and I decided to look for a house to buy. We talked to a loan officer and was told since I am self-employed for less than 2 years, I cannot be on the loan. So, my father is taking my place as a co-signer and we got pre-approved for FHA. Got some issues with my dad being a co-signer (his income was weird) but that all got taken care of.
We finally find a house we like, put in a bid and accepted. Just got through the inspections and now waiting on appraisal.
In the mean time, after my dad and fiance started filled out the official application, submitted all documents, the loan officer tells me the lender doesn't like that my dad and my fiance are on the loan together, unrelated. They want an extra $40,000 down for the loan! Obviously, with the wedding just around the corner and us already saving every penny for this, we don't have that. So, my loan officer is in fact adding my name to the loan, just not my income, since I am obviosuly related to my father and so we don't have to pay an extra $40k. We never planned me to be on there so of course if we needed to sacrifice any credit these past few months, we used mine.
I started the application process and saw the credit report they took out. It didn't dawn on me until now that the report didn't include the small loan I took out back in February. Now if I knew that I was going to be on this mortgage loan, I would not have taken it out! I paid back the loan already, because I ended up not needing it. I have a letter from the company who gave me my loan that says that it is paid in full. There was also never any hard inquiries for me to get this loan either, so nothing shows up!
We close in less than 30 days!
What I am afraid of is the soft pull that will occur a day or two before closing and it shows this loan. I'm hoping it shows paid off! But even still, the fact that it could pop up scares me! It's already been a bumpy road and by me being added to the mortgage loan has increased the back end DTI to 42% from 40%.
