Should I Appeal? NFCU Mortgage Denial

[reesepooh00]

Hi ,

Need some advice... I applied for a mortage loan with NFCU a few weeks ago. Received preapproval immediately .Uploaded docs right away.Everything was running smoothly. We (My husband and I)figured all would  be well. Our credit scores were in the mid and Low 7 and we have sufficent income (So we thought) Everything went great. Unfortunately,During that time the rates increased . BUt i figured no problem , were still a year out and every 120 days we will have to provide updated information no problem. And by Nov both my husband and I would receive additinonal increases.Unfortunately,  My mortgage application came back denied due to high DIT . The LO stated it was 53%.I later found out they didnt use my husband second  nor third income because it had not reached two years yet. The two year mark hits  december of this year. The house isnt scheduled to be built until sept of next year. They were informed of all of this yet. Stated no problem. Yet only consider our first two incomes once it went to UW. Our finances will change multiple times before were anywhere near a close. Just trying to decide if i should appeal or move on to another bank or mortgage broker. Thoughts ?

[reesepooh00]

Hi, Im currently going through underwriting with NFCU after being preapproved. I just notice my application is still there but the amount disappeared. Does anyone know what that means?Really nervous about this process

[ShanetheMortgageMan]

Not sure exactly, could just be a software error.  I'd recommend you call NFCU and ask how your application is coming along and if there is any additional information or documentation they need from you at this point.  

[reesepooh00]

Thanks. Ive reached out and was instructed to contact my LO. She stated she would provide an update today but no response as of yet . Once i saw the change in my account I became concern. This my second time going through the homebuying process but my first with NFCU.

[Mortgage-Specialist]

Them knowing that closing is scheduled for next September yet still declining your loan even thought your 2nd jobs 2 yr mark is less than 2 months away is beyond unsettling. I'd worry they'd find something else to decline the loan between now and September. Save yourself the anxiety and find another lender. There's no good reason for them to do that

[MortgageMama]

Appeal is not an option. Flat out, a borrower must have a two year history at tme approval of a second job and/or OT for the income to be used for qualifiing. Your "appeal" will happen when the 2 year mark happens for the OT. Sorrry, the automated websites absolutely FAIL in understanding that. While most lenders do use a form of automation, there must always be a loan officer on the other end that you can consult and plan with.

[ShanetheMortgageMan]

Did everything pan out OK?

[Revelate]

You generally only need a pre-approval and the earnest money to go under contract with the builder in my experience (on my second and probably last new construction).

If the build isn't ready till next September you won't be closing till then anyway so your actual mortgage process starts 45-60 days or so ahead of it.  Doesn't make any sense to go earlier than that, as long as you have contract signed with the builder you're sitting pretty for now.

Rates are going to change anyway over the next 10 months, trying to lock and hang onto a rate that long would be absurdly expensive and TBH there is a good chance the construction won't be completed on time anyway.... mine is basically 9 months late at this point.

[reesepooh00]

Unfortunately, the loan was denied due to insufficent income . We were credit approved.We didnt understand as we only needed a conditional approval to move forward with the property. NFCU stated my husbands second and third income didnt qualify as it did not hit the two year mark yet. We told them this before submitting our intent to proceed. We were told no worries as the property was scheduled to be built until Sept next year. Again im so confused....

On the bright side, we spoke with the builder and was informed we had more time to lock a loan. Im able to breathe a little bit. Only nervous about the process because our contract stated we needed a Commitment to lend 30 days after signing.

[reesepooh00]

Thanks. My contract stated we needed a commitment to lend letter within 30 days. Good news is i contacted the builder and they told me I had more time to find a lender so no worries.

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@Revelate wrote:

You generally only need a pre-approval and the earnest money to go under contract with the builder in my experience (on my second and probably last new construction).

If the build isn't ready till next September you won't be closing till then anyway so your actual mortgage process starts 45-60 days or so ahead of it.  Doesn't make any sense to go earlier than that, as long as you have contract signed with the builder you're sitting pretty for now.

Rates are going to change anyway over the next 10 months, trying to lock and hang onto a rate that long would be absurdly expensive and TBH there is a good chance the construction won't be completed on time anyway.... mine is basically 9 months late at this point.

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