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Yippee! Just got approval for new loan


CallMeLee
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Just heard from my mortgage broker that my loan has been approved by the lender's underwriter. I have to admit to being a little surprised since my scores are not that great (581, 595, 649). Although, apparently this lender uses the average of the three scores rather than the mid-score.

I even got a decent interest rate (i think), at 7.99/9.45 on an 80/20 full doc loan. Another broker sent me a GFE for a 100% loan at 10.65%. I told him no way.

So now I'm scheduled to close on the 28th and I will be actually be a home owner before I turn 40, which was my goal. Pretty cool eh?

FYI, for those of you considering new home loans with scores less than 600, according to multiple people in the mortgage industry that I've spoken with, most sub-prime lenders are increasing their mid-score requirements to 600.

-Lee

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I just spoke to CTX Mortgage again today, and (she) told me 580 is still their minimum. She also told me 620 is the magic number to get sub-8, and actually closer to 7. If you can wait long enough to get to 620 you might save yourself $100s a month, depending on what you are planning on buying.

Congrats!

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Yes, 620 is a "magic number". Between there and 640 is a market called "A-" or "Alt-A", rules and rates are between conforming (prime rate) and Non-conforming (sub-prime). You will probably need some assets/reserves and no open collections, good rental history etc. Nice thing is that most of the time there are no PrePaymentPenalty issues etc.

Charles

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Yes, 620 is a "magic number". Between there and 640 is a market called "A-" or "Alt-A", rules and rates are between conforming (prime rate) and Non-conforming (sub-prime). You will probably need some assets/reserves and no open collections, good rental history etc. Nice thing is that most of the time there are no PrePaymentPenalty issues etc.

Charles

Thanks.

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Congratulations CallMeLee!

My guess is your broker is using Novastar - they average the three scores.

Just got the initial paperwork from the lender and it is indeed Novastar. Guess you know your stuff sr28b. :)

Also, thanks to everybody for their good wishes. This board has really been a lot of help.

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