Can my mortgage loan still be denied?
My wife and I applied for a mortgage loan through Bank of America. We did the pre-approval and now have our rate locked in. They received our W2’s, check stubs, bank statements and residence history before the pre-approval. We’ve already lined up home owners insurance, paid earnest, inspection and appraisal. The appraisal came back 5k over the requested loan amount. My wifes credit is 552 and mine is 681 and even though they’ve already checked this and told me this I’m scared we’ll ultimately be denied. I’ve been at my employer for 10 years and she for 4 with a combined income of 70k. We close on August 21st and if we don’t get this we have no other options.
***Her credit is low due to late payments during the last 2 years of her last marriage and a few medical bills sent to collections which are now paid. Mine is from a bankruptcy from 8 years ago when i was married. Credit has been perfect since.
Yes I did discuss her score with the loan officer. I don’t see why I’d even get pre-approved if there was a major issue with her score. The house we’re trying to get is 2x our income so its not an outrageous amount and our debt to income is only 26%. We’ve already sent in our LOE’s also. I just don’t get it, if there’s a minimum credit score they’ll accept, why even pre-approve. She told me up front that if I just used my information we’d get a better rate because her credit was bad and if we used both our rate would go up. But we still were pre-approved. I’m lost here
Thank you for all the responses and future responses I may get. I’ll keep hope alive but it doesn’t look promising. I really should have checked into her credit before we started this process. But really, BOA shouldn’t have pre-approved me if her score is that low. I really felt like I was on top of everything until now. Thanks again
One more thing. She has never had a credit card. She had two car loans in a joint account (as is stated on credit report) and both payed off although with late payments. Also a few medical bills in collections which have been paid. I didn’t know if not having credit cards would help. I assume people bad with credit would be in deep credit card debt. I thought maybe there could be an exception to the rule. I’m learning not.