chingasaholo Posted August 9, 2003 Report Share Posted August 9, 2003 Charles,I'm trying to help my buddy through a rough mortgage process. He's going for a VA loan with wells fargo. His credit score is 615 and his wife's is around 569. Wife has some small charge-offs wich are bringer her score down. After I hooked him up with my mortgage loan officer, they got farther with him than the last guy that just dropped them.only problem is this guy is asking for everything but the kitchen sink, in addition to the standard stuff (pay stubs, w-2's, etc...) he wants their last two months of bank statements, he's asking for cancelled checks for deposits made on their accounts, gift letters from an aunt who gave his wife 500.00 two months ago, etc....what gives can you tell??? As far as I can tell and I'm watching this process too, the loan hasnt gone to underwriting yet. What do you think their chances are? They are asking for 200,000. combined income per month is 7200.00 with about 1165.00 in monthly debt. I believe they are well within the proper ratio.whatever insight you can give would be great, they are presently deciding whether to continue the loan process or just go rent a place. I told them to stick with it for awhile longer and see how it pans out but it seems like everyday this guy is calling them asking for some obscure piece of paper. Their house is a mess, they've been tearing it apart looking for documentation to send this guy and then he askes for more!in short do you think their chances are good for the loan? There credit is marginal at best but they do have the income. Their credit has been stable for the last two years (no lates) and they did provide a good-looking credit explanation letter to wells fargo.....what do you think?chingoh...dont know if this matters but they are financing the va funding fee and having the seller pay the closing costs (or most of them) Link to comment Share on other sites More sharing options...
firstsource Posted August 9, 2003 Report Share Posted August 9, 2003 Hay, you fooled me and sent this by email... So here is a post of the reply I sent you.It sounds like there are some income and asset questions for the LO. Do your friend and his wife have regular jobs? Or are one or both self employed?Do they have the assets needed for the loan? On their bank statements, are there a lot of unusual deposits? Bank statements are of them selves a normal requirement, but tracking down where the money came from is not normal. Why did the aunt give them money? Does that 500 deposit look odd?If the answers to the questions are: Normal job, normal deposits, enough assets for 3 months PITI and for the closing cost that they have to pay, ie insurance, prepaid interest, escrow amounts, then it is strange. Charleshttp://www.homeloans.va.gov/ Link to comment Share on other sites More sharing options...
chingasaholo Posted August 9, 2003 Author Report Share Posted August 9, 2003 Well,The 500 was used for paying off their car, which they did to bring themselves into the proper ratio. When the LO heard this he wanted a gift letter. He also wanted a deposit slip and the cancelled check which they are going to provide. They are expecting the closing costs to be paid by the seller (appx. 4000) and the va funding fee to be finanaced in. According to our research this is all allowed by the va. So they are just concerned that all this work will be for nothing if they get disapproved....I was just concerned as to what there chances are for getting the loan. My buddy is in the military, his wife also works full time. Their combined income is a little over 7200.00 a month. What do you think? If you were in the LO position would you submit the loan for underwriting or tell them to wait a year or so to get the credit stuff cleaned up? I've seen their credit reports, other than a few blips here and there the look good, just the paid collections (and a couple small ones) are bringing their score down Link to comment Share on other sites More sharing options...
firstsource Posted August 10, 2003 Report Share Posted August 10, 2003 I am sort of aggressive, so I would for sure submit it to underwriting, and if it did not pass automated, then I would either have that lender do a manual or go to a lender that did have manual underwriting. Then it is a judgement call. The important thing then is to have "letters of explaination" for any problems with past credit history. These actually are very effective, we are "selling" the lender on the fact that those are past problems caused by......? and they won't happen again. I don't like to see them that say " I ran low on money, so could not pay" I want to see, "my mother was sick...., "I moved, when we moved on the last transfer my wife had difficulty getting a job, but she won't now, because...I think you understand. Remember "Lenders want to get their money back on time", if we can just convince them that they will here, we have a great deal. Charles Link to comment Share on other sites More sharing options...
chingasaholo Posted August 10, 2003 Author Report Share Posted August 10, 2003 I read their credit explanation letters, they sounded pretty good to me. Most of the wife's problems occured during a military transfer (and loss of job) several years ago. And the lates on his credit (no collections) occured at the same time. I hope they take some pity and sympathy on these folks, they put up with a lot of crap most people dont have to. Hopefully someone will take heart and give them the loan they deserve. Link to comment Share on other sites More sharing options...
firstsource Posted August 11, 2003 Report Share Posted August 11, 2003 The letters sound like they will be perfect. They should also put in there somewhere, maybe an additional letter, (so that the underwriter can include or not, as they see fit, with the file) stating that they have always paid their rent and cars (if they did!) on time, as they feel that the payment for the "roof over their head" is of great importance. Yes, UW's have feelings, and as long as they feel that the borrower will make their payments on time, they will work with the file as much as they can. Charles Link to comment Share on other sites More sharing options...
chingasaholo Posted August 11, 2003 Author Report Share Posted August 11, 2003 That's exactly what they did, they explained each and every negative on their reports in detail. They also put that each of their car loans and credit cards have been either paid off or perfect for at least two years (in some cases more than two years). I also had them make sure every inquiry was explained (my buddy had numerous inquiries that he did not do) So I think the letter looked pretty perfect before it went out. The file should be pretty complete now, hopefully they'll have an answer soon. I'm not sure if this is true or not but one loan officer told me the minimum qualifying fico for a VA loan was 580...Is this true?ching Link to comment Share on other sites More sharing options...
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