Home Buying in Henryetta>Question Details

Leslee, Home Buyer in Henryetta, OK

loan was released back to mortage broker the day before closing!

Asked by Leslee, Henryetta, OK Fri Apr 25, 2008

We have a commitment letter and did a refinance for the 20 percent down and payed off our other debt with it. We were set to close today at 11:00AM and the underwriters had already clear apprasial, VOD, debt ratio is 44% and underwiters approved loan and conditions and went to put it in the system and the computer would not take it. Underwtiers did not know why and now they released it back to mortage broker and she ran our credit again and said that it is saying it must be a credit problem and she faxed to credit bureau this morning with a letter saying the account had been paid in 2004. She does not know for sure if this is the problem why the computer except the loan. Mortage broker states that hopefully she can get it done this week. Any thoughts on really what happened and could the underwriters have processed it somehow. This is a Freddie Mac loan. WE are out of time and have been under contract since Feb 15, 2008. Shouldn't some one know for sure what the problem is?

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4
Leslee,

Sorry your experience was anything but what you expected. The brief explanation you provided along with the lender's verdict that credit was the problem leaves me to believe that the problem was with your debt to income ratio. If your credit scores had incresed by 20 points since initial loan application I can only imagine that the debt to income ratio was somehow affected by a credit report that was not updated.

I hope by now you have resolved your problem and are happily in your new home.

Good Luck!

Trey Bowden
Mortgage Lender
Edmond, OK
(405) 340-3277
0 votes Thank Flag Link Wed May 14, 2008
No that I know of. She is say that our creidt had went up 20 points or so. She said that they had to rerun the credit since it had been 120 days and their is no reason that she can see if it not to go thru. After further questioning she stated that the error just said credit. Said that one account was deliquent 90 days was not not correct we have a letter stating the account had been paid in full in 04, and she faxed it to the credit bureau to have them correct it. We also contacted them and they stated that it would be corrected on his credit file today. She said that she was unsure if this was the problem. This is only showing up on one of the credit bureaus.
0 votes Thank Flag Link Mon Apr 28, 2008
Question, after you paid off you debt did anyone take the pay-off slips and have a rescore done. This would raise your score immediatly. You giving the letter to the mortgage company does nothing unless he does a rescore where it actually removes the bad credit an raises it. If you have questions your free to call me anytime. John Trim,281.685.0792
0 votes Thank Flag Link Sun Apr 27, 2008
I'm not a mortgage expert by any means, but it sounds to me like they were assuming that by paying off the debt and making the changes that you would be approved. After you had done everything and they put it in the system it sounds like it kicked it out. Are you speaking with a mortgage banker or mortgage broker? Did they give you your credit score? There have been several changes just recently in the lending industry and your credit score plays more in your ability to get a loan now than what it ever has before. I know a couple of lenders that may be able to get your loan done for you, or at least be able to tell you what is going on if you would like.
0 votes Thank Flag Link Sat Apr 26, 2008
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