Home Loan Falls through, may lose house?

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We are trying to buy a house for $ 50,000. We went to three different banks and each one said that it wounldn’t be a problem and then when they start the process, it falls through. We were told that are debt to ratio levels were too high but yet every bank came up with different numbers! The we decided to go with a mortgage company to get a USDA loan. Three weeks ago we did all of the paperwork and were told we would get an answer in a week. A week later we call back and find out that the guy who we talked to went on vacation and the people in the office didn’t know anything about our loan application so we had to do it all over again. Finally, last week, we got the paperwork submitted and were told that it takes 4-5 days to get a conditional approval back and to call today. I called today and was told that they haven’t heard anything and that the original guy we talked to was back in the office and would call use when he hears something. Meanwhile, the lady who has been waiting for 2 months for us to get a loan (she is a family friend) is getting to her breaking point and is tired of waiting as she is getting other offers. I don’t know what to do and this whole mess is tearing our family apart because of the stress. How long can it possibly take for us to know if we can get even just a pre-approval?? If something doesn’t happen soon, we are going to lose this house and it is the only one in our rural area that is an amount that we can afford. How can we stop getting the run-around everywhere we go? Does anyone have any advice?
The credit scores across the board are higher then 650, the total monthly debt is $ 687 and monthly income is $ 2,500. There hasn’t been a fair ratio quoted for us. One was 37%, another 52%, another 41%, and finally we were told 47% at the mortgage company. This company we are working with didn’t say anything about us having a bad debt-to-income ratio, they are just not working with us very well and taking a long time to work on this loan.

Hello im going through the usda for a rural home loan and i turned in the preapplication then they sent me the real application i turned that one in then they asked for paystubs,rent history,and a couple other stuff then a 34$ money order for a mortgage credit report fee so i was wondering if we are for sure going to get the laon or what steps come next?thankyou

  1. Reply
    January 30, 2011 at 6:04 pm

    If you are having that hard of a time getting a loan, perhaps you can’t really afford to buy a house at this time. Continue renting and save your money for a bigger down payment or pay off your bills so the debt ratio improves.

  2. Reply
    January 30, 2011 at 6:51 pm

    My first suggestion is to find out if USDA even has funds, last time I checked that program was out of money is not expected to be refunded by Congress until after the first of the year.

    If your debt to income is off to receive approval, you are going to have to eliminate some debt or make more money somehow. Having a pre-approval is nice, but it is not any sort of guarantee you are getting a loan. As one poster here says, he can get a ham and cheese sandwich pre-approved, doesn’t mean you are getting a loan. Lenders have been tightening the criteria for getting a mortgage and if you getting repeated denials, you are going to have to change your situation.

  3. Reply
    January 30, 2011 at 7:34 pm

    Some individuals run into all kinds of problems when attempting to get things done, this appears to have happened to you.

    You should try to find a FHA mortgage broker/lender. Your debt ratio could be as high as 45% in some instances. Speak with a qualified mortgage loan officer. You pretty well know the ropes now, therefore you know what is needed to be approved for a mortgage loan.

    If there is this much difference in your debt ratio from lender to lender you might would want to check your credit report to see what is being reported. Your debt ratio is based on the debts listed on your credit report plus your new monthly mortgage payment.

    Normally with a competent mortgage loan officer you would know in approximately 7-10 working days with an approval that might have conditions that would need to be completed.

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

    “FIGHT ON”

  4. Reply
    January 30, 2011 at 7:46 pm

    No, them asking for the $ 34 doesn’t mean you’ve got the loan yet. They need that money to check your credit score and your credit score, on top of a favorable rental history and income verification, is what will determine it at this point. Good luck.

  5. Reply
    Ed Atun
    January 30, 2011 at 7:56 pm

    Yes. It is a frustrating process which moves very slowly. They are similar to FHA loans but have even more paperwork. They take 60 or 90 days. They require that the house be repaired prior to closing; which irritates home sellers who feel like they are being nitpicked about fixing windows that don’t have locks or windows that have tiny cracks. Do not use USDA to buy a repo property.
    The money order is just the first step in getting the loan. You won’t be sure you get the loan until the house value is determined by an Appraiser. Then you will know that you are going to get the house..

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