(Closed) Home buying is beyond stressful! A few questions!

posted 4 years ago in Home
Post # 2
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400 posts
Helper bee
  • Wedding: October 2016 - Harn Homestead

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KatJoy227:  I didnt have a bad histroy when I went to buy a home, but surely if you dont have any issues they will see you as a positive. As far as his negatives, they were awhile ago and if he has been on time and no creating a lot of debt I dont see why there would be an issue.

Post # 3
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47436 posts
Honey Beekeeper
  • Wedding: November 1999

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KatJoy227:  Interesting difference in process. In Canada you get pre-approved for your financing, before you go house hunting  so as long as you find a house within your budget, you know you will have financing.

Post # 5
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5940 posts
Bee Keeper
  • Wedding: May 2014

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KatJoy227:  I was kind of in your DH’s boat, but it was SE FL and it was 2008. Those were bad times. We lost our house, too.

If he’s been pre-approved then I’m thinking you should be good. I mean, that’s why you go through that, right? To get your ducks in a row so you can make an offer? Did your mortgage broker say he thought it might be a problem?

Post # 6
Member
309 posts
Helper bee

If you went below what they told you, you should be okay.

My BK was back in 09 from the housing boom of 04 bust in 08. My credit score is now 750 and I bought in December.

I was in the exact same boat. And my problem was the debt to income. They ended up fighting me over over $700 dollars saying it took me over debt ratios because the taxes came back higher than they expected. They looked everywhere to bump up my income. It was the most ridiculous thing I have ever seen.  It ended up being a 90 day close. from very start to end. Even after papers were signed and it was ‘over’ they screwed up the papers and I had to go back and sign new papers a month later.  I totally understand your stress.

Post # 7
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47436 posts
Honey Beekeeper
  • Wedding: November 1999

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KatJoy227:  So that’s the difference. In our pre-approval process the mortgage broker submits your information to the lenders (banks, credit unions, trust companies etc) before you go home hunting so you already know the exact amount they will lend.

Anyhow, good luck in getting approved.

Post # 8
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9966 posts
Buzzing Beekeeper
  • Wedding: September 2012

The scary thing about pre-approvals for mortgages in the US is that they aren’t really approvals at all, they’re just an educated guess, more like an “application” process.  Anyone can get a pre-approval.  Getting through the actual underwriting process is closer to being hellish.  Debt to income ratio, credit scores, etc., for the past year or two will be looked at the most closely but be prepared to answer for every little tiny thing on your credit reports, even going back years.  It’s not fun and is very stressful but hopefully it will work out.

We sold an inherited property in Virginia recently; two potential buyers in a row had been “pre-approved” but when it came down to actually getting the mortgage loan to buy the property they were denied.  It was a pain for us because we had to re-list on the market each time it fell through (finally sold it for real and closed last month – woot!).  Pre-approvals are a general guess at best, from mortgage companies.  The worst I’ve seen is with Wells Fargo (hate them but they rule the freakin’ world right now).  Mortgage companies are so hard to work with these days.

Post # 9
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5083 posts
Bee Keeper
  • Wedding: December 2014

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KatJoy227:  We just closed a house in FL last Friday, so I imagine your process will be similar to ours…

The preapproval was nothing at all, just a credit pull and a few questions on the phone. The underwriting process was very in depth and pretty stressful. Your husband’s negative credit stuff is right at the 7 year mark, are those things even still on his credit report? If not, then I wouldn’t worry about it. If so, those probably would have come up in the preapproval credit pull and should have been brought to attention by your mortgage broker. 

We got approved for a mortgage with both of us having new jobs within the last couple months (and DH has a commission-based job, plus he’s changed jobs 3 times in the last year within the same industry) and with DH having some late student loan payments from 2014. I was honestly surprised that we got approved with those issues, given all of the horror stories that I read online (you need two years at the same job, spotless credit, issues with commission positions, etc.). 

I feel your pain though, we also had issues with the house appraising low and having to renegotiate. I refused to get my hopes up until the keys were in hand.

Post # 11
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9966 posts
Buzzing Beekeeper
  • Wedding: September 2012

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KatJoy227:  Good luck!  🙂

Post # 12
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10635 posts
Sugar Beekeeper
  • Wedding: January 2011

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Sunfire:  Sounds like your pre-approvals are like our pre-qualifications.  My pre-approval was underwritten.

There still can be issues here, but it’s more to do with how the lender views the houses value, or if there’s a change with someone’s finances, etc.

Post # 13
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9966 posts
Buzzing Beekeeper
  • Wedding: September 2012

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AB Bride:  Yep, exactly.

Post # 14
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7592 posts
Bumble Beekeeper
  • Wedding: June 2013

Are you sure it wasn’t a pre qualification? When we were preapproved that was it. They approved of us. The next step was approving of the house and I believe they double checked to make sure neither of us had lost our job in the last month since they had written our pre approval. If it actually was a pre approval you shouldn’t need to worry about his previous financials anymore, just that the house is appraised at or above what you are paying for it.

http://m.mortgage101.com/article/mortgage-pre-qualification-vs-pre-approval

Post # 15
Member
275 posts
Helper bee
  • Wedding: July 2014

I imagine all the issues you’re affraid of came up even in the pre-qualification.   Things like forclosures and collections come up quickly.  If one of you had strange income sources like commissions or large bonuses I might be a little more nervious but it really seems like they are aware fo the worst of it. 

Also, when I and my sister bought our houses they gave us INSANE preapproval requirements and relaxed them when the actual mortgage was drawn up. 

For me,  they told me I had to put an extra 10% down while I was building (they changed their mind but I had already saved it),  they initally told my sister she had to get rid of the car loan and close a couple of her credit cards but she only closed the credit cards and was able to keep the car in her name. 

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