craignem Posted July 15, 2005 Report Share Posted July 15, 2005 Ok here is the situation my husband was prequal for a loan. 1.The first problem we found a house for 108,900. The lo told us we had to borrow at least 112,000. (sign to run) In our contract we used the extra money to "buydown" the interest rate. 2. Two days before we closed after numerous calls to our lo we find the underwriter did not approve the loan because of a a drop in his credit score. So now we are out of $300 we paid for the appraisal and my husband's credit score is down from a 580 to a 540. We are going to clean up his credit and dispute everything in collections. Should we wait until next year to try again or just wait until we get his credit score up to a 620? Link to comment Share on other sites More sharing options...
Ravenous Wolf Posted July 15, 2005 Report Share Posted July 15, 2005 At what point can you be turned down for a mortgage?Can loans be turned down like a few days BEFORE closing???I just signed the papers to lock the interest rate. My house will be finished within 30 days so I expect my closing to be done in about 30 days. I thought that once you got the approvals and locked the interest rate, it was over with.Do underwriters monitor your credit report and score on a daily basis? Or is this just an anomaly? Link to comment Share on other sites More sharing options...
ghacorp Posted July 15, 2005 Report Share Posted July 15, 2005 Yes, underwriters can in fact bail-out when credit problems are discovered. Most often however, other lenders such as in the sub-prime category will underwrite your loan. Interest rates can be a little higher. Bear in mind the mortgage industry is competitive and lenders want your business! Link to comment Share on other sites More sharing options...
firstsource Posted July 15, 2005 Report Share Posted July 15, 2005 I really don't understand what happened here. If the home sold for 108, did your LO have you change the offer to 112, or the home could have sold for 108, and the seller raised the price to 112 to give you some seller paid closing cost money? Sign and Run? What does that mean?Also, Did the home appraise for the 112K? Was it a good appraisal, or did the appraiser have to go far away to get comparable homes for the appraisal?Yes, lenders can run your credit 1 day before closing, so once you have made the decision to purchase a home, do not charge anything, do not look at cars etc, where they check your credit. Do not get fired, do not change your job, do not make the landlord mad, etc. just have no changes at all to your life, until after the closing. I would suggest that you just wait until your scores get to the 580 range, and start looking again. In some states there are loan programs available for 100% financing with a 560 score, but of course the rates are higher than if you have a 580 or 600 score. Link to comment Share on other sites More sharing options...
amortgageman Posted July 17, 2005 Report Share Posted July 17, 2005 Here's what happened: It was not credit cards. Our LO told my husband to try and get a secured lone of credit about two weeks before she pulled his credit. Well he went to his credit union to get a secured loan and was denied. After the denial he applied for a secured credit card and recieved the card in the mail. So I think it was the inqury, denial, and new account that brought his credit score down.NEVER apply for new credit during the mortgage process. My opinion is that the underwriter saw this, and since the qualification may have been marginal, declined the loan. Another possibility may have been that this new account may not have been disclosed on your application, and when the lender saw this, it made for a lot of questions.Looking to the bright side, after a couple of months, your scores should rebound, and you will be able to try again.The LO may not be a total idiot, but he/she is uninformed.Whatever you do, get another LO.Talk to Charles (Firstsource), he has helped many on this board, and would never tell someone to do that. I the meantime, we will hope that the home is still there on the market, and with a little luck your scores may rebound within the time of the current appraisal, and he MAY (not always guaranteed), be able to use your current appraisal. So, since you already paid for the appraisal, get a copy. Link to comment Share on other sites More sharing options...
craignem Posted July 18, 2005 Author Report Share Posted July 18, 2005 What I meant by the sign to run is that when she said that the program that we were going through stated that we had to finance at least $112,00, I had almost did not go through with the process because I was ready to walk because it did not sound right to me. The seller was still only getting 108,000 for the house. The LO stated that the other $4,000 would be used to buy down the interest rate. The house was appraised for $114,000. We have also requested for the appraisal to be mailed to us. Link to comment Share on other sites More sharing options...
firstsource Posted July 18, 2005 Report Share Posted July 18, 2005 Ask them to email you the file. They come in adobe formated and that way you will have the color pictures. I don't think that they HAVE to do that. They do have to send you the appraisal within 90 days of their receipt of a request from you that you send it to them.Charles Link to comment Share on other sites More sharing options...
credit007 Posted August 16, 2005 Report Share Posted August 16, 2005 What I meant by the sign to run is that when she said that the program that we were going through stated that we had to finance at least $112,00, I had almost did not go through with the process because I was ready to walk because it did not sound right to me. The seller was still only getting 108,000 for the house. The LO stated that the other $4,000 would be used to buy down the interest rate. The house was appraised for $114,000. We have also requested for the appraisal to be mailed to us.hmmmm....consider an alternate LO. Link to comment Share on other sites More sharing options...
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