3rd Times a Charm-Our Story

Questions3rd Times a Charm-Our Story
asked 3 years ago

I’ve been stalking these forums for 3 months after 2 denials for our loan, learning where we went wrong and what we could do to make our dream home happen. 

We are building our dream home and were looking for a Jumbo Construction-Perm loan with only 10% down. Before knowing ANYTHING about what this would take, and before joining MF, here’s how the sh*t storm started:

Lender 1 told us that they typically didn’t do 90% CP loans but she would ask for an exception based on our file so we filled out the app and authorized everything. She called me back a few days later and, very uncomfortably, told us that my husband’s credit came back with scores EQ 693, EX 699, TU 661 and that to get even an 80% CP loan, we needed a mid score of 700. For an exception of an 85% loan, we would need at least a 720 mid score. My scores were there but they take the lower of the 2 borrowers (as you all know). So she started telling me what was bringing his scores down. Turns out, it was a lot of erroneous stuff with lots of baddies (Revolving Accounts with 30, 60, 90 day lates). Again, not knowing A THING about how FICO scores work, we go back and forth with Lender 1 about our options, ie., 80% loan was all she could do. We didn’t want to sell our house and have to move out before the new one was built so our equity was tied up until then. We have a buyer but they are renting and are ready to buy now, but understand that we don’t want to move twice and are willing to wait. They want our house BADLY.  We were just about to concede and see if they could buy now but I called around and….enter Lender 2.

Lender 2 tells us (in the most casually enthusiastic voice) that “Oh yeah, we do 90% CP loans. All you need is a mid score of 690”. Husband and I rattle off his scores given to us by Lender 1 and she says we are in great shape, send over all the statements, auth forms, blah blah. We literally high five each other, crack open a couple beers and go sit on our empty lot. Screw the baddies, that doesn’t matter. We are in “great shape”.

Several days later, chipper Lender 2 calls us with a different tone. Says husbands scores came back EVEN LOWER at 680’s (EQ and EX) and TU 626!! SIX -TWENTY-SIX!! I was like Fred Sanford clutching my chest, “I’ts the big one, Elizabeth”! SHe started in on all the baddies and rattled off a medical collection and AU accounts with baddies. I stopped her right there. Medical collection? Turns out, the collection and the AU’s belonged to his dad (they share the same name). Still not knowing anything about FICO, I told her she clearly pulled his dad’s report and not his. I couldn’t wrap my brain around it, but then again, she was not very helpful in explaining things. I told her that once that was corrected, we would easily have a 690 for the loan, right? SHe says, with no emotion, “Oh, no you need a 720 for that loan”. Wait, you told me 690. SHe said, “Yeah, that was my bad”. Your bad? If we had known that, we wouldn’t have authorized another pull! It took me a few weeks to recover from her “bad”. In the meantime, I read everyword of every post on MF and became a FICO ninja. I dedicated myself to my husband’s credit reports. THe 30, 60, 90 day lates…gone. Wasn’t even his credit card. It was as easy as calling BofA and giving them the info from the CRA’s. They didn’t have any record of it, so they requested the CRA’s to remove it. AU accounts…gone. They were his late mom’s cards and his dad was the AU, not him. Medical collection…dad. Gone. Paid down revolving debt from ~80% uti to <10%. 

Also during that time, I found Lender 3, courted her, told her our story, we bond. I give her updates as they come in, and we celebrate each little victory with lots of emojis and exclamation marks. 

I watched his FICO8 scores go up to 746, 734, and 722. Obvs this didn’t happen overnight but neither did Rome. FICO 4’s squeaked in at 734, 715 and 706 but we are still waiting on an update with current balances (I paid one CC down to zero but it carried a balance and tacked on interest for the next statement. I didn’t realize that until after it reported. GRRRRR). Anyhow, fast forward to yesterday. Builder calls and says they need a closing date because permitting is close and we can’t break ground until the loan closes. We’ve stalled for 3 months because of the credit sh*t storm we blindly flew into. I call Lender 3…it’s almost time. We would consider a rapid rescore if we have to. Husband and I go into a design meeting and I miss a call from Lender 3. I quickly call her back. She pulled the credit. NOOOOOO!!! She calms me down. She assures me that, because it’s a portfolio loan, a mid score of 715 isn’t as big of a deal as I think. She even says she took it to her supervisor who said no biggie. But I’m losing it. When I said it’s “almost time…rapid rescore if necessary…builder needs closing date…” she thought I meant GO TIME. 

I’m so freaked out, so frustrated and so deflated. I wanted that victory moment, where I would pull a fresh 3B and have the golden egg (cue Chariots of Fire music). I understand that even with the updated balances, we may not have gotten to 720 but I have lived, ate, breathed these numbers for 3 months. 

I keep asking her for her reassurance. SHe told me that she even put it into automatic underwriting and it came back as APPROVED/INELIGIBLE. The ineligible is because it’s not a Fannie. It’s jumbo so it’s an automatic ineligible according to AUW. 

I could really use some warm fuzzies from my fellow MF’ers right now. THis waiting is excrutiating. It reminds me of the 3 minute wait when you take a pregnancy test (2 kids, lots of sticks have been pee’d on to get them). Smiley Tongue

 

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