Mortgage approval or denial taking FOREVER

Caresid · Joined: 14 Mar 2008 Posts: 12 5.79 Dollars($)

I found a home I want, I paid the seller $500 and I found a loan officer, I am looking for an FHA loan. I have a loan officer who sent in my request to manual underwriting, the first one was declined within 12 days, I have a bankruptcy that will be 2 years old in June and because my lease is up at the end of April we are trying to get this mtg done now, he sent in the second request to Wells Fargo and it has been 6 weeks next week and they keep putting me off, I received a disclosure packet with the financing all laid out and when the first payment would be due but no approval or denial, my loan officer just simply does not know whats going on and dosent ask. . what the heck can I do here?

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Caresid,

Welcome to the forum.

If you are out of the BK for 2 years then you should get approved for the mortgage. If any borrower is out of the chapter 13 for six months, then he can get approved and if someone is out of chapter 7 for two years he can get approved for a mortgage. So in both of the situation you should get approved.

Now have you asked them why are you not getting approved? Is it that your credit score is too low or income is not sufficient to get approved? I think you should ask them directly the reason.

If you cannot get any response here you should shop for other lenders.

Feel free to ask if you have any further questions or update us with your situation.

Best of luck,
Larry

Caresid · Joined: 14 Mar 2008 Posts: 12 5.79 Dollars($)

My middle score is 642 so thats ok, I work full time as a nurse. . I may have to find another Lender as this is making me nuts!!

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Caresid,

Welcome back.

"may have to find another Lender " If you want to have a free counseling you can get it at http://www.mortgagefit.com/ or you can even with the community lenders at http://www.mortgagefit.com/unitedstates/

Hope some will surely help you out.

Best of luck,
Larry

Caresid · Joined: 14 Mar 2008 Posts: 12 5.79 Dollars($)

Thanks again I appreciate your help.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Caresid,

You are most welcomed. I hope with your personal experience you will also be able to help people and make friends though all over the world.

This is a forum where I came almost a year ago and found immensely helpful people who are always ready to help people. At that point of time I also decided to participate in this forum and now I have thousands of friends not only from United States but may be from all over the world Smile

and at the same time you can also earn some $$$. A special thanks to Sam who has provided us this platform.

So hope in future you will also be one of the most active members of this community Smile

Best of luck,
Larry

gmakerley · Posted: Fri Mar 14, 2008 9:13 pm Post subject:

caresid, i think i agree that you ought to seek another lender; and quite frankly, a lender with his own funds doesnt have to shop around for funding from other people with money.
i think getting money from the money-people makes more sense than going to a broker, but thats just me.

John1 · Posted: Fri Mar 14, 2008 10:12 pm Post subject:

How has your credit history been in the past 12 months? FHA typically looks at the last 12 months of credit history, but after a BK they will be looking for any derogatory items on your credit report after the BK. Also, what was the reason for the BK? Mismanagement or something else, this will also effect the decision. If it's been 6 weeks, that's nuts. I would say 5-12 day is what some lenders are taking for approvals...not 6 weeks.

Caresid · Joined: 14 Mar 2008 Posts: 12 5.79 Dollars($)

I pay all of my bills on time or early, bought a new car nearly a year ago.
No bills late. I think they are stalling with the paperwork until they can proceed due to the bankruptcy (which is now 21 months old) however my lease is up end April and that is why we are trying to get this done now.
Any suggestions on what I can do to expediate this?

jbarto65 · Joined: 04 Nov 2007 Posts: 626 -0.11 Dollars($)

Are they aware that your lease is about up? Are you in communication with the lender themselves, I would be contacting them directly to find out what is going on. As stated above, this loan should be approved, especially with you positive credit history after the bk, If I were you I would go directly to the lender, goodluck, hope you get your loan soon. Keep us updated here.

John1 · Posted: Sat Mar 15, 2008 8:19 am Post subject:

move on to the next person. Get a referal from your Realtor. The person you are dealing with either can't do the loan and doesn't know what they are doing. No Professional will put you off for 6 weeks. You deserve better service than this

gmakerley · Posted: Sat Mar 15, 2008 9:18 am Post subject:

i thoroughly agree with john above. go elsewhere and do it quickly.

will this be an inconvenience to you? of course it will. but considering the 6 weeks it has taken so far to get nowhere, going to someone who is able and willing to work with and for you will alleviate the pain of the inconvenience (and the inconvenience of the pain, as well).

find a new lender and do it quickly. jbarto suggested you deal directly with this lender, but i suspect that you dont know who the lender is, if you are working through a broker. you need to have your own hand in this, no doubt.

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