Hello Myfico freinds !,
I am going to try and make this as short as possible without leaving out the details.
I am currently in underwriting.
My middle credit score is below the FHA requirement however., My loan officer is going to pull my credit again on the 25 of August. ( she pulled it last month and the middle was 616.) since then I have paid down three credit cards leaving two of them with tiny balances ($ 3.00 & $1.00 balances) and the other two that I have are 0 balances.
I have all the documentation submitted that has been asked of me tax years, bank statements etc. (allot of work)
I had to pay off my child support arrears which I did on two court orders.
a couple of weeks before all of this, I disputed equifax and after their investigation they deleted a forclosure, changed my child support history and arrears to 0 balance
I had a bankruptcy and forclosureapproximately 5 years ago. which the bankruptcy (chapter 13) was completly discharged and dismissed.
as far as my credit goes:
4 credit cards 2 with $1.00 and$ 3.00 balances, the other two 0 balance to keep util down. one of my credit cards has been open since 2006, the others are newer no lates.
a student loan which is in good standing now, 6 lates., 2 lates in 2010 and 4 in 2011, account opened in 2001. no lates for the past year 1/2
3 collections which are paid in full from 2009.
My bank account has NO bounced checks, I managed to save 10,000 and put down 5,000 on the home which got ratified.
leaving 10,000 at closing for me to pay. I'm saving up now to close in september. (anticipated close date sept 29th)
this property is a brand new luxery home. 400,000, had built.
lender is requireing a 640 score which I'm 24 points away.
my salary is 104,000 a year.
some say that its good that I have an "in house" underwriter but i don't know.
I'm nervous now and CANNOT AFFORD THIS TO FALL THROUGH !!.
Any thoughts ?. suggestions ? Insight ?.
This is nerve wrecking !!.
Looks like you are on the right track! Carefully monitor your crecit dont rely on LO. STay in clsoe contact with him or her though, you are your own best friend in this process!!
First, congrats on the new house! I'm closing Sept. 6th, so I know how nerve wrecking the wait is!
I'm self employeed, so it's been a handful to deal with throughout the entire process. Everything I've supplied ad documentation is legit, but still, I know I've been losing sleep over it, haha.
The only thing I read in your post that the under writer might question is your savings for your actual down payment.. You've mentioned that you're currently saving so you'll have enough in time for your close date at the end of September.. (unless I'm reading it wrong). If that's the case, however, they might look at your bank accounts during the underwriter's review to make sure you have enough to pay off your down payment (and any closing costs you're responsible for). If it's not there in the bank account when he or she reviews everything (for example, today), they might question you about it. I'm no expert, so then again, they might not say anything at all.
I only mention this because I happened to be sitting there with my processor who glanced through my bank accounts right then and there to make sure I had sufficient funds to pay off the remainder of my down payment, come time for closing.
Anyhow, good luck with everything! I know it'll be a load off your back once everything is in your hands!
Thanks, I appreciate all of your insite !,
I spoke with my LO whose been really good so far. She said not to worry about the money because I am saving and that she would write up
some type of addendum( can't remember specifically) for the funds being saved during the process so its not an issue.
then I asked her is their ANYTHING that might decline me?. her words were and I quote " Don't worry, the underwriter is right here in my office and I am the boss".
after that my all my worries ceased to exist.
How the heck is the loan officer the boss of the underwriter? That is strange. No?
Hoping all goes smooth and well for you!
Some of the items that you mentioned can still take a few months to actually show on your credit report. Have you asked your lender if they could do a rapid rescore? You would submit all of your back up documentation to show all the changes, they send it in to the credit bureaus, the bureaus verify the information and rescore your credit. It usually takes about 72 hours and the rescore would only be shown for the mortgage lender, but it helps speed up the process and get you a better credit score and interest rate on the home purchase.
Yes she has mentioned the rapid rescoreing process. She said she is going to use that as a backup just in case on the 25th of aug
I don't reach the required score. I'm not worried though cause I'm only like 24 point away. When she pulls my credit I would have been through two billing cycles
from the time I have paid off my credit cards so it SHOULD show a balance of 0 on them
thanks for all of your help it's appreciated.
Score shot up to 656 !!
Locked in Rate Today @ 3.750 % no points.
Closing date September 26 2012.
LO says she has not heard anything yet.
Keeping fingers crossed along with bedside prayers.