magsmess Posted August 4, 2003 Report Posted August 4, 2003 First, a little background info: 5 years ago my husband's parents bought a house in their name for my husband (and me) to be transferred to his name after their death. We paid the mortgage payments, but the house was in their name. A little less than two years ago my husband died and his parents began paying the mortgage to help out.The in-laws health has declined rapidly since then and the person handling their affairs was going to let me sell the house and use the proceeds to buy a new house. After she realized the extent of repairs needed to sell the house, she decided to just go ahead with getting the house and deed transfered into my name. Just two weeks ago I started working on my own credit repair and my current scores were EX-664, EQ-641. I never did get my TU score. Now I have to meet with Regions, the current lender, on Monday 8/11. The current payoff is around $54,000. What are my chances of being pre-approved? I've held the same job for 14 years, have a car loan at $17,000, and my credit to debt ratio on credit cards is at 30%. My credit for the last three years is great, but I have old derogs on my reports that I have just begun disputing.If Regions does not approve me can I find my own lender and if so, who should I go to with my scores? The current loan is not assumable and I would not be actually buying the house from them, just refinancing to get it into my name. It would be ideal if I could get an extra $10k to make the much-needed repairs.I'm so confused and in need of guidance. I'm pretty scared about this meeting with Regions next week. I wanted to get up into the 700's before starting on the mortgage approval.Any advice or words of wisdom?
firstsource Posted August 5, 2003 Report Posted August 5, 2003 Don't worry, You will have no problem getting a loan. I don't know much about Regions bank, but you should qualify for either their prime rate loan with no "hits" or with a few "hits" to the rate. I am telling you this because the rates will not be the lowest, loan size is a possible problem, cash out is another, and you are on the line to qualify for the lowest rate, as far as your credit goes. If you don't get approved by them, you will have NO problem getting a loan, either from another prime lender or an Alt-A lender, or depending on the rest of your financial situation, you could get a low rate sub-prime loan. Charles
firstsource Posted August 5, 2003 Report Posted August 5, 2003 Don't worry, You will have no problem getting a loan. I don't know much about Regions bank, but you should qualify for either their prime rate loan with no "hits" or with a few "hits" to the rate. I am telling you this because the rates will not be the lowest, loan size is a possible problem, cash out is another, and you are on the line to qualify for the lowest rate, as far as your credit goes. If you don't get approved by them, you will have NO problem getting a loan, either from another prime lender or an Alt-A lender, or depending on the rest of your financial situation, you could get a low rate sub-prime loan. Charles
magsmess Posted August 5, 2003 Author Report Posted August 5, 2003 Thank you so much for answering! Now I can walk in there with at least a little bit of confidence.This whole thing has been getting to me in the worst way--I'm even dreaming about it at night.
firstsource Posted August 5, 2003 Report Posted August 5, 2003 That is sad. I love this business, and have a lot of fun doing it, but even I don't have to dream about it at night. CharlesBTW. If you have ANY questions that you don't get answered to your satisfaction by the LO, I am here.
magsmess Posted August 11, 2003 Author Report Posted August 11, 2003 I think I just got approved? The loan officer said "I'm going to go ahead and underwrite this right now and all that's left to do is get a quit claim deed signed and get the insurance transferred to your name". Does this mean I'm approved? The interest rate is 6.25% and the cash out amount is $7800 for making some repairs. Of course, we have to get the house appraised and get the deed transferred too.
firstsource Posted August 11, 2003 Report Posted August 11, 2003 I would call the LO on this. Either you got an automated appraisal approval, (Is happening more and more, mostly in larger cities) or he forgot to order one, and does not realize that. He will send your insurance company a request to change the Mortgagee clause to read the name of the new lender. That is probably all. Charles
magsmess Posted August 11, 2003 Author Report Posted August 11, 2003 An appraisal was listed as some of the closing costs, which are being rolled over into the loan amount. I'm not actually buying this house--it is being gifted to me and the loan is just being refinanced into my name.Are you saying that an appraisal should not be required? I thought that anytime a loan was refinanced an appraisal was required. He seemed impressed that I already knew my fico scores and asked if I had any bankruptcies, judgements, or lawsuits against me, which I don't. There was one other thing he asked, which I have totally forgotten already. He mentioned my paid charge-offs and I explained the circumstances at that time and he seemed satisfied with my explanation.Oh, and it is the same lender as the original mortgage...he even gave me the new loan number and the amount of my monthly payment.
firstsource Posted August 11, 2003 Report Posted August 11, 2003 RE: Appraisal requirements. It is not a "should be required", that is an item that must be taken care of. However, it can be checked off using an automated system, some lenders will "stream line" one of their own loans and use the old appraisal, etc. But if you are paying for an appraisal, you should get one. It is worth a call to either save the money or get a copy of the appraisal. Charles
magsmess Posted August 11, 2003 Author Report Posted August 11, 2003 Ok, thanks Charles. I will ask him about that. The original loan is five years old, so maybe they could go with the original appraisal.
Recommended Posts