kind of feels like a low blow

[Laurajean]

Me & My Peeps :

Quote:
Sounds odd. Banks dont usually make an offer letter without having already run a credit report and looked over finances. Maybe it's for the best, even thoguh thats not what you want to hear. The bank/mort place may have changed its intrest rate on you at the last m inute....."Well we DID say that you dont qulaify BUT....we can get you in at a higher interest rate">.....

I'm thinking the same thing, it's odd. The whole point of the letter is to assure that they DID do all the credit checks, etc. You said the credit score varied by only a few points. Could there have been recent activity that wasn't there at the time of the Pre-Approval letter but came into effect a little later? Something as simple as a late credit card payment or a couple too many credit inquiries can lower the score suddenly and considerably. I know you said his ex racked up the bad credit, but if his score was borderline at the time of the pre-approval, then the slightest mistake on his part could put it just below the minimum acceptable score.

Just remember, if it was meant to be, it would be. Maybe you'll fix the credit issue and during that time find an even better house! Then you'll be glad about this kink! I've dreamed about owning a home for many, many years. Me and my ex combined did a good job of really messing up my credit. It took me many years to clear it up and to finally get to this point, and I did it alone and disabled. So if I can do it, your day will come too, don't worry. Something better is probably in store.

 

[Cowgirlgrace]

We recently refinanced and our credit scores were qualifiying but because they go with the lowest persons credit and their mid score, they didn't even look at my 760. Made me mad that I work hard to have a good credit score and they only looked at my husbands (who was lower) mid score. The interest rate was higher because of it. Our mortgage lady said his score was the way it was bacause your credit cards cannot be charged more than 30% of your available credit or your score will go down. I had several high available credit cards in my name with no balance so to improve his score we transfered his debt to my cards. Then we got proof from his credit card companies that his credit was paid down and then requested a rapid rescore with the credit companies so we didn't have to wait the month or two for it to show up. It was really a pain to do but our mortgage lady (not a bank) walked us through it and it worked. We got the lower interest rate. Just thought I'd share that in case it helps. If the score is too low to begin with it may not help.

 

[TwistedSerpent]

No recent credit activity, been paying everything off in time. I'm not even included in this. Our agent found a place we could get approved for but the interest rate is much higher and he has to go to a few classes or some crap, which with my bf's line of work is going to be pretty hit or miss on whether he can make it or not, being gone for 3-5 days at a time. Its not like his credit is horrible either. Its the weekend and the holiday so we cant really do anything until tuesday. From the start we told them right away its for a detitled mobile home on a permanant foundation, go through everything feeling like everything is working out good then suddenly they tell us no the credit is 10 points too low (they want 650 and we're at 640).

He has only one credit card with a $500 limit, thats it.

 

[The Chicken Lady]

Get the loan in only one person's name (the one with the higher credit score).

 

[Whispering Winds]

Quote:
Sounds odd. Banks dont usually make an offer letter without having already run a credit report and looked over finances. Maybe it's for the best, even thoguh thats not what you want to hear. The bank/mort place may have changed its intrest rate on you at the last m inute....."Well we DID say that you dont qulaify BUT....we can get you in at a higher interest rate">.....

I'm thinking the same thing, it's odd. The whole point of the letter is to assure that they DID do all the credit checks, etc. You said the credit score varied by only a few points. Could there have been recent activity that wasn't there at the time of the Pre-Approval letter but came into effect a little later? Something as simple as a late credit card payment or a couple too many credit inquiries can lower the score suddenly and considerably. I know you said his ex racked up the bad credit, but if his score was borderline at the time of the pre-approval, then the slightest mistake on his part could put it just below the minimum acceptable score.

Just remember, if it was meant to be, it would be. Maybe you'll fix the credit issue and during that time find an even better house! Then you'll be glad about this kink! I've dreamed about owning a home for many, many years. Me and my ex combined did a good job of really messing up my credit. It took me many years to clear it up and to finally get to this point, and I did it alone and disabled. So if I can do it, your day will come too, don't worry. Something better is probably in store.

There is something called a "pre-approval" and a "pre-qualified" letter. Which one did you get. The second means they have accepted your application BUT they have to still run things to check your credit and make sure its up to snuff. The first letter is where they have actually done the check and you are good to go. Two ways to help raise that credit score, is find a loan company, not a bank, that reports to the credit bureau. Borrow $500, DON'T spend it. Just put it in a separate account, and make that payment every month a day or two before its due. They usually report to the CB at the end of the month. Makes a slow but definite impact on your credit. Also, I have read that the credit cards you put money on and use like a debit card will also help your credit score. Ask if this is a Rural Development Loan, right now one of the head honchos goofed and sent a memo out to the loan officers telling them the money was there, and the gov. did not release it, and it may be Oct. before anymore funding comes in. This is a 100% no money out of YOUR pocket loan, and its a low interest one. I deal with them alot. There is also a new one, a 203B I think, don't know much about it yet, that is also going to be extremely popular. . . only $100 down. Also, don't think just because you pay your car loan or have your accounts at a bank means you have to go there for a home loan. There are certain banks that are just better at residential loans than others, and ask people you know who have bought their homes and won't think you are being nosy, where they did their loan and how did they think it was handled. There is no better advertisement than word of mouth and a happy customer. Good Luck.


Just caught the suggestion about putting it in the person with the higher credit score name only, which is another option. I think your score has to be 620*640 depending upon who you are dealing with. There are also loan officers out there who deal with people with a little bit lower score, and you might want to research that option also. Interest rates are the same, they are usually FHA loans, which means you have to come up with 3.5% down. When one person buys the home, they can do a quick claim deed later on down the road to get the other perso's name on it for their protection in case of a split or something. Just depends upon the circumstances.

 

[TwistedSerpent]

We got pre approved for sure, althought I'm not sure the letter we got was just stating the pre-approval or if it was the actual prequalifying letter, I do know we had one or the other faxed and we included it in our offer. I dont think putting myself on the loan would help any, my credit is pretty bad due to losing a job a few months ago, and income-wise I'm nothing compared to what he brings in. I'll tell him to check into other loans besides the VA loan when we call around Tuesday, there's got to be other options then what were presented with right now, just need to find them.

Thanks everyone, your help has been huge

 

[Laurajean]

Quote:
The way you worded that makes me want to just clarify one thing for you. The Pre-Qualification letter is the FIRST letter you would get, not the "official" one. It states that a quick look at your credit and assets puts you 'in the range' to buy a home. Some realtors ask for this so they don't waste their time showing houses to someone who doesn't stand a chance.

The Pre-Approval letter is the one you really want. That says it's official. The bank/lender has reviewed everything and has official numbers on you credit and income wise, and it tells the seller they WILL finance you.

I'm still not sure what happened in your case. But I just wanted to make sure you know the difference so the next time you have a go at this, make sure what you have is an actual "Pre-Approval" letter.

Good luck!

 

[TwistedSerpent]

I just checked our papers, the first line reads "Your loan request has been approved!" and goes on explaining the approved status, so I would assume its a pre approval letter?

 

[Laurajean]

Quote:
Sounds like a pre-approval letter. I can't imagine what happened then. Very confusing. Have you outright asked them why they would approve you and then later change their mind? If so what did they say?

 

[TwistedSerpent]

Didnt get a chance, they called right before we both had to go to work on friday, cant call them back now until tuesday due to it being Memorial day weekend.