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OK, I am officially freaking out

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Valued Member

OK, I am officially freaking out

Well we started the new loan process a few weeks ago.  Lender gave me the ok and preapproval to put an offer in on a 155,000k house.  Credit is just at the brink of approval but not enough for automated underwriting.  So this goes manual.  Well, my income in 52500 last year which puts me in the ballpark of $4375 a month gross.  Right now my debts are showing $595 a month, but I can probably get that down to $550 by paying a couple cards off and such. (331 car and 230 student loan, plus cards)  PITI on the new house is right now $1380, but should drop to 1360 when I lock in my rate.  (rate is higher because of credit issues and lender paying closing costs).   If things go as planned and I can drop my 595 to a 550 and get a lower rate I should be right at a 43.6% DTI.  If not I'm looking at  a 45% DTI.  In the case of 45% they will need 3 months PITI in reserve to close.  That's going to be tough but I might be able to manage it.  Well, another thig came up.  I may have a job offer on Friday which would put me a $5000 gross monthly and it would be same industry/job but a somewhat different position. Obviously that alleviates my worries of DTI but will it kill the loan if I switch at this point?  Should I accept and use offer letter as proof of increased income or put off starting the position until after closing?  Anyone been through similar situations?  Thanks!

Starting Scores 10/24/14 : Trans - 523 / EQ - 545 / EXP - 554

Current Scores 10/6/2015 : Trans - 678 / EQ - 673 / EXP - 670

Starting Mortgage mid Score 8/1/14 : 398
Current 10/6/15: 651
Message 1 of 6
5 REPLIES 5
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Established Member

Re: OK, I am officially freaking out

The best person to give you an accurate answer is going to be your LO/lender. I can tell you that the lenders I worked with required 6 months with the same employer, but some other lenders don't, especially if you have a large downpayment. I'd call your lender first thing in the morning!
Message 2 of 6
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Valued Member

Re: OK, I am officially freaking out

So to add more anxiety to my loan, my loan officer said I will nee 12 months proof of rent as well.  Right now we rent from my wifes father and pay mostly cash.  Sometimes I take out money from my bank but not the entire amount and my wife throws in the rest.  (she works in cash and tips mostly).  How can we ge tthis verified when we have no cancelled checks etc?

Starting Scores 10/24/14 : Trans - 523 / EQ - 545 / EXP - 554

Current Scores 10/6/2015 : Trans - 678 / EQ - 673 / EXP - 670

Starting Mortgage mid Score 8/1/14 : 398
Current 10/6/15: 651
Message 3 of 6
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Senior Contributor

Re: OK, I am officially freaking out


@scarl23 wrote:

So to add more anxiety to my loan, my loan officer said I will nee 12 months proof of rent as well.  Right now we rent from my wifes father and pay mostly cash.  Sometimes I take out money from my bank but not the entire amount and my wife throws in the rest.  (she works in cash and tips mostly).  How can we ge tthis verified when we have no cancelled checks etc?


Tell your loan officer that you rent from a family member, pay cash and have no receipts ... then ask him how to go about complying with his request. Post-dated receipts won't cut it in my opinion.

 

Message 4 of 6
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Regular Contributor

Re: OK, I am officially freaking out

My LO sent a rent verification form that showed the amount I paid in rent and that it was on time.. it was accepted.
Message 5 of 6
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Valued Member

Re: OK, I am officially freaking out

Ok, so it looks like my father-in-law had his bank write a statement that we have deposited into that account $1000 monthly since 2008.  Which we have.  I ended up being able to find this past June through December proving that but since the first of the year he told us to get caught up with debt and save for a downpayment so we dont have Jan. through April (Have May) I hope this is enough.

Starting Scores 10/24/14 : Trans - 523 / EQ - 545 / EXP - 554

Current Scores 10/6/2015 : Trans - 678 / EQ - 673 / EXP - 670

Starting Mortgage mid Score 8/1/14 : 398
Current 10/6/15: 651
Message 6 of 6
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