Home Buying in Marietta>Question Details

Rosalind, Home Buyer in Norcross, GA

My middle score is 610... I have a contract on a house ,, can't close......HELP.

Asked by Rosalind, Norcross, GA Thu Jan 12, 2012

The seller accepted the offer in October,, several things have happened, this has been the worst experience I have ever encountered, yet I am hanging in there. This is the third closing date which we are not going to make, and I believe it is the final. HELP

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Mslorainne’s answer
Rosalind my heart goes out to you, I understand this is frustrating for you, and not to mention costly, one person that I have come to know is that no matter what you need to TRUST your lender, and have a real-estate agent that has your best interest at heart. Its not fair for the Agents that’s out there that has a genuine concern and then there are others that’s thinking about the amount of money they are going to make and neglect to be honest. I pray that because you have the right motives & because of lack of understanding that God gives you favor in the situation.
0 votes Thank Flag Link Tue Jan 24, 2012
If you were originally working with AmericaHome Key, then they did abruptly close a month or so ago. The GA Department of Banking & Financing actually issued them a Cease & Desist last summer.

Sine you did change lenders, this would be the reason a new GFE would have been issued. For a GA Dream loan, DCA does require a 620+ minimum credit score. Tighter underwriting guidelines will also apply with lower credit scores.

If there are any disputes on your credit report, those must be removed immediately. In most circumstances, lending guidelines do not allow a trade line to have a dispute status. You would need to contact each creditor and request that the dispute request be closed.
Web Reference: http://www.rodneymason.com
1 vote Thank Flag Link Mon Jan 16, 2012
Rosalind,
The lender who took your mortgage application had 3 business days to give you a GFE after you applied for the mortgage. Since they didn't and it is federal regulation, you should report them to Georgia's Banking Commission.
Since some items were disputed from your December credit report, your lender can do a rapid rescore. Without those items, your score should go up.
As you know, your file was mishandled. Your Banking Commission report should get a higher up in your lender's organization to look at everything. My bet that your problems will be corrected.
1 vote Thank Flag Link Mon Jan 16, 2012
Rosalind,

Agents are prohibited from advising the client of another agent and REALTORS® have sworn to avoid sharing opinions about other REALTORS®. I am, however, terribly sorry to know that you're are in this situation and hope for the best. Should you find yourself without an agent and have a need for some guidance, I'd welcome a call.

All my best for a successful transaction.

Solomon Greene
REALTOR® Keller Williams Realty Atlanta Partners
1 vote Thank Flag Link Mon Jan 16, 2012
Rosalind, Did you not get preapproved? If you didn't shame on your realtor.
Go to your local non profit housing group for credit counseling. The counselor will go over your credit report with you. They will tell you what you are doing wrong and what you should be doing. Listen to them and when your score is 640+ you can think of buying.
1 vote Thank Flag Link Sun Jan 15, 2012
For FHA loans, most lenders require a 640+ minimum score. At Prospect Mortgage, we do offer an FHA 580-639 FICO loan program with a 3.5% down payment.

Late payments and other derogatory items will continue to impact your credit for several years, but the biggest impact is in the 0-24 months after the occurance. If your score has dropped, then you may have some recent late payments or other derogatory items.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | VA | USDA | GA Dream | Jumbo Financing
Web Reference: http://www.rodneymason.com
1 vote Thank Flag Link Fri Jan 13, 2012
Rosalind,

I can help you with this transaction. Call me at 678 467-9959 or email me at tbrown@getevolved.com.

Timothy Brown
LPO Manager | Evolve Bank & Trust
11605 Haynes Bridge Road Suite 125| Alpharetta, GA 30009
tbrown@getevolved.com
678.468.5626 x110 | fax 678.935.1156 | cell 678.467.9959
1 vote Thank Flag Link Fri Jan 13, 2012
Rosalind,
Sorry for your troubles. 1st let me say 'Normally" you can have your credit pulled as many times as needed in a 2 week (14day) period and they will only count as one pull, some of the credit reporting agencies will go as far as 45 days under the same rule. However, it sound like you had a lot of straggling inquiries outside that timeframe.
You are on the right track to fixing your credit/scores but let me give you one extra hint for a quick boost (usually 10-14 points within a month).
Go to: http://www.optoutprescreen.com
Sign up for the 5 year electronic option. Whether you are aware of it or not the credit bureaus sell your information. Companies Passively scan your information thousands of times a month to look for individuals who meet their Demographics. By taking you off their list you do two things,
1. All the junk and marketing materials mailed to you everyday will stop (can take 3-6 months before final as information that is already sold has a max of 6 months to continue marketing to you)
2. More importantly, with out all the thousands of passive inquiries your score should jump at least 10 points in the next month.
Next Topic - with your scores, do you have at least 3 lines of credit? if so I can forward you information to another loan officer at Bank of America who is able to go down to 580 scores.
You are welcome to call me at 404-932-5353 for more information.
Best Wishes,
Robert Robbins
Senior Loan Specialist
Cornerstone Mortgage Group
678-578-7613 or 404-932-5353
0 votes Thank Flag Link Sat Jan 21, 2012
Rodney Mason I never was given a GFE, until January.
0 votes Thank Flag Link Mon Jan 16, 2012
Hank Miller and others, Here is some more information to my title above....My middle score is 610... I have a contract on a house ,, can't close......HELP.....I am a first time home buyer and have been misguided since the beginning of this ordeal. I have been my own source of help with no solid communication from my lender. I found a house, told my agent. I called the lender who gave the Realtor a prequalifaction letter. My Realtor put a offer in and the seller accepted. I gave my earnest money, had the home inspected and did all the things I was suppose to do. Oh sorry lets back up. My Realtor made a deal for me where I was left paying all the closing cost. This was October 5, closing was set for Dec 5. Being IGNORANT to the real estate biz, I thought the closing cost would be about $500, no one told me how much this would be, and I was so excited that they accepted my offer I didn't ask, until few weeks later, I wanted to know what the figures were. I couldn't get any answers from the lender, no communication or nothing, finally weeks later, she says we need to meet to go over all my paper work, I'm still asking about figures.. I now realize I have to come up with around $10000, which I did not have, So now I'm asking her about why can't I get into the GA Dream, she says I need to get my scores up. At this time October 28th my score is 623. So Ok , now I got the money, can't get financed. We miss December closing. Now American Homekey Southern Region closes and we have a set back... seller gives us until Dec 30th.. she says she needs until second week of January. From Dec 5 until Dec 30th the Realtor, the listing agent and I can''t get her to respond to us. Finally when she does January 3rd I get a Good Faith Estimate letter, few days later I call her to make sure we are set for the 18th our last extended for closing, she says we are not going to make that date. She says I have disputes on my credit report which I know, they have been there for a year now. She says few creditors reported them for Dec, this dropped my score... My lender herself had been in my score 7 times since we have started this fiasco. She says it's not pulling my credit down, but they are in the hard inquiries. This is my first time purchasing a home, (not her) shouldn't she have known this 2 months ago, what I neede to correct on my credit, All this time I am thinking ll is well. Three of those disputes have come off and I given her the paper work. She now is asking me why do I believe they should be deleted. HELLO.. they have been deleted ... NOT SHOULD.. one was fraud and the others I knew nothing of. She says Credit Technologies is saying they should stay on. I SAID WHAT???? There is so much more in this story, I just can't relate it all. One thing I can say I have learned a very hard lesson.. I see now why they have classes to help new home buyer get education...WOW. I am now working with my creditors, payed off one and wrote settlement letters to the others. I just need a truthful lender and one who is willing to communicate. As a matter of fact I have never met either, my lender nor my real estate agent..... I found my own house she has never seen it. EXHAUSTED.....Rosalind
0 votes Thank Flag Link Sun Jan 15, 2012
Hi, I work with a great finance company, who would approve you with this score, and the rate will be very good. Give me a call asap, and I will help you. You can reach my assistant at 678-523-9405, and we will take care of you. Looking forward to helping you. liliya
0 votes Thank Flag Link Fri Jan 13, 2012
Very sorry to hear this. Assuming you are involved with a conventional mortgage; maybe get an extension and switch Loan to an F.H.A. transaction. Very crucial to get your extension asap as if the time runs out or owner does not extend, your transaction can be terminated.

Tim Brown below is in your State so reach out to him as he will be able to best guide you through this tough process. Not all lenders are easy or reasonable today. Sometimes it's best to get more than one opinion Rosalind.

Best of Luck to you,

Rob Hughes-Long and Foster RE INC
0 votes Thank Flag Link Fri Jan 13, 2012
Hi Rosalind,

If you are not working with an agent, will please share a few more details? For instance, how much do you already have invested in this transaction (earnest money, appraisal and inspection fees, etc.)? Is this a foreclosure or government sponsored enterprise transaction (HUD, Fannie Mae, FDIC, etc.)? There may be an opportunity to cut your losses and move on, but more info would be needed.

Again, if you are not working with agent, please call so that we can speak.

Thanks
Solomon Greene
REALTOR® Keller Williams Realty Atlanta Partners
(678) 775-2677
0 votes Thank Flag Link Fri Jan 13, 2012
Do you have an agent working with you? If so, how are they letting you get twisted on this since October? Was your score a 610 when you signed? If so, didn't you understand that was likely to result in problems?

There are many gaps here and unanswered questions but clearly this deal should have either closed or you should have terminated it. Post more specific details as to why it's not closing, what your agent has done, why your credit is dropping and what is being done to facilitate the closing.

Hank
0 votes Thank Flag Link Thu Jan 12, 2012
I'm sorry to hear about your troubles. Firstly, I find it hard to believe that your real estate agent would not have had you prequalified before you even looked at the house. If you had, you would have known that the 610 score would be a problem long before you got to this point. Your options will depend greatly on the seller's situation. If the property you are buying is owned free and clear by the seller (no loan for them), they may be able to offer you short term temporary owner financing. I believe 640 is the magic number. If you are at 610, I would think you could get to 640 with some minor effor over just a few month's time. In fact, if you had started working on your credit back in October, you would have been above 640 by now. Because you are that close, you could be a good candidate for a lease purchase. With a lease purcahse, you would move into the home as a renter; but with an understanding that as soon as you get your score to 640 you will purchase the home and start paying a mortgage instead of rent. Without knowing all of the details, these are 2 options that I would be exploring.
0 votes Thank Flag Link Thu Jan 12, 2012
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