Pre-Approved

[Anonymous]

I just wanted to log on and thank you guys for helping me make my dream of owning a home a reality.

When I first logged-on I had been scared to face the reality that I know -- which is that I had made some mistakes in the past. I pulled my Fico EQ and was 580. The report indicated that even though I had bad things in the past I gave up on (5+ yrs ago) that for the most recent couple of years I've had nothing late show on my report. The main thing holding me down, according to the report here, was that I did not have any current revolving credit. With ya'lls advice, I opened a $300 secured Orchard Card in May09 and got the ScoreWatch as well to help monitor. Well, within 3 months I started to see drastic jumps in my EQ Fico, and from there it steadily went up. My score watch reported that my EQ had reached 629 last month.  All this time, I was doing some small investing to help build funds for a downpayment. I had built up a little over 6K and was making some ground. A few weeks ago, however, it all came to a crash as my investment got cleaned out. I was depressed and very nauseous...

Well, after looking around I came across some programs online with down payment assistance , etc.. and figured maybe there's still a chance I can make something happen in time to squeek in for the 8k tax credit.  

   This past Friday I emailed a lender who called me and went over my situation with my scores, past baddies, income level, etc,.. I was curious just to see if I had any chance of getting a home loan. I faxed over all the docs he needed and he called me earlier today -- IM PRE APPROVED!! He pulled my scores and reported a MID score of 645   He said I can get a 5.5% FHA loan.

He pulled 635EQ, 645 TU, and 657 EX, man I was so happy. He just called me now stating he emailed the pre approval letter to my work email, so I am going to go print it out first thing tomorrow morning and get on the house hunt asap. I drove by one today I really like , it is listed as being a HUD FHA insured. The lender mentioned I could utilize the HUD $100 downpayment program for such a home, which definitely helps as I think I could only scratch together a few grand. My hope is to bid for list price and ask that HUD pay for closing costs. What do you guys think?

 I guess the othert step I need to do is find a realtor who can get me a tour of this house I like (I've only peeped in through the windows so far.) 

Once again thanks guys and I'll keep posted on the progress --> I really hope I can push something through in time for the first time home buyer credit.

Message Edited by planoser on 10-19-2009 08:02 PM

[Anonymous]

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@Anonymous wrote:

I drove by one today I really like , it is listed as being a HUD FHA insured. The lender mentioned I could utilize the HUD $100 downpayment program for such a home, which definitely helps as I think I could only scratch together a few grand. My hope is to bid for list price and ask that HUD pay for closing costs. What do you guys think?

 I guess the othert step I need to do is find a realtor who can get me a tour of this house I like (I've only peeped in through the windows so far.) 

Once again thanks guys and I'll keep posted on the progress --> I really hope I can push something through in time for the first time home buyer credit.

Message Edited by planoser on 10-19-2009 08:02 PM

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Congrats!  If you're serious about a HUD home, make sure you pick an agent familiar with them.  The process works a little differently with these.  Also ask about the timeline upfront.  You're cutting things close if you're dead set on the tax credit and things may take longer with the process for these homes.

[Anonymous]

Please make sure you understand the process.  I started the HUD bidding about a month ago.  I bidded on one house, lost the bid to some one higher.  Then I really thought I found a good deal, very new house.  HUD had it listed for $84k but it is worth a lot more.  I won the bid of $115,099 and got it by $99.  Now, I am being told that I may have to come up with the difference due to new rule on the books that HUD put out on 10/15.  I don't have $30k to put down on this house.  Also, I am tired of the time it takes.  I wanted to make the Nov. 30 tax credit deadline.

[Anonymous]

Not to say it's impossible, it is highely unlikley to start bidding now on a HD hoem and get closed prior to the credit expiring.

Also, the HUD homes have alot of problems as far as getting a deal done.  They are typically very competetive as far as bidding and alot of the processes have changed.  As the other poster stated, make sure you get a HUD experienced agent.

[Anonymous]

After touring several homes this week I decided I want the original home I found which is a HUD FHA insured property listed @ 142k. Bids are due by midnight this Sunday (tomorrow.)  I had my realtor put a bid in today @ $500 over asking price, plus we asked for 3% closing cost contributions from HUD. I'm patiently waiting to find out on (hopefully) Monday whether I got it or not!  The lender and realtor are both optimistic we can still make the Nov30 closing deadline -- I really hope I close in time for the tax credit and if we don't make the deadline I'll be praying they extend the credit!