Do you think my mortgage loan has a chance to go through?

Deal Score0

We found a house for $ 129,900, appraised by lender at $ 135,000. The seller is agreeing to pay $ 7k in closing costs and thats included in the price. We make $ 67k combined (her 35k, me 32k) I’ve been at my job for 9 years and she just started but was at her previous school for 3 years (she transferred). We have 10k in the bank for reserves and our debt to income with mortgage and all bills will be 33%. The kicker is her credit score is 573 (average from the 3 credit bureaus) mine is 710 (same average). She has many late payments on her account and a few collections but these happened when she was previously married, I’m paying off collections now. We were pre-approved and our rate locked in. The lady said we’d get a better rate if we just went with my information but we needed her income to get the house so our rate is 5.75%. We submitted everything they asked before our rate was locked in and my loan officer said she didn’t see anything that would cause the underwriter to deny us…I trusted her and we’re supposed to close on Aug 21st. We’ve paid over $ 1,500 in appraisal, inspection and earnest. Now I’m reading most banks don’t approve anyone with under a 620 credit score. Anyone have anything similar or know anyone who was in a similar situation and got approved? I’m a little freaked out to say the least and it sucks.
It’s $ 129,900. With FHA, mortgage amount will be $ 127,500 +/-. Also, when I said I was paying off collections, I’m paying off hers…I don’t have any. Just wanted to clear that up

4 Comments
  1. Reply
    Not I
    April 30, 2011 at 12:30 am

    You do not say how much of a mortgage you are looking for?
    If less than 100k you will not have a problem. Averaged out your credit score 641. You might be asked to bring more cash to the table.

  2. Reply
    loanmasterone
    April 30, 2011 at 12:34 am

    If you have been pre-approved for a mortgage loan, then you should not have any problems with the mortgage loan.

    The mortgage loan process has a life of it’s own. You can not predict what will happen from mortgage loan to mortgage loan.

    Getting a FHA mortgage is about the best thing going now unless you are a military veteran. Veterans are eligible for a no down 100% mortgage loan.

    You are probably not going through a bank to get your FHA mortgage loan. What is written in the newspaper probably would not apply to you as that information applies to certain borrowers. Each lender brings his/her own unique qualifications to the loan process.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

  3. Reply
    golferwhoworks
    April 30, 2011 at 1:34 am

    there are a few lenders still doing down to a 560 score thus the hit to your rate as it is wall street that wants you to pay more to qualify. They will use her middle score and yours is not of concern since it is fine.
    I am a mortgage banker in TN

  4. Reply
    daeve930
    April 30, 2011 at 2:07 am

    If you were pre-approved, really pre-approved and not just pre-qualified, that means you are conditionally approved. Conditions are listed in the approval letter you should have gotten. Basically, they’re that the income and assets claimed can be verified, and that the house appraises for at least the sales price and is in acceptable condition and that the chain of title is ok. They’ve already seen the credit reports and know her credit score.

    If there was still a question about your credit they wouldn’t have ordered the appraisal. The inspection is for you, not the lender, and the earnest money is to show the seller you’re serious so those have nothing to do with the mortgage.

    Lenders have different ways of viewing credit. Some only look at the primary borrower and ignore the co-applicant unless there’s something like bankruptcy. Others line up all the scores and take the lower middle score. And sometimes, they do something else entirely.

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