How do I get approved?

fozman68 · Joined: 14 Nov 2007 Posts: 24 10.49 Dollars($)

I've been working on getting a mortgage since last October. I knew it would be tough, but I thought I would be approved by now. I came out of my Bankruptcy 13, in Oct. 2006, show no late payments over last 12 months, have proper income, have proper down payment, but keep getting "no's".
I understand that I need manual underwriting, but so far, I keep getting shot down. (excuses, are lame too.)
I need to get approved soon, paying this rent is killing me. I was a home owner for over 10 years, before I ran into this problem, and I'm looking to put it behind me.
Thanks for reading,
Ken

larry · Joined: 27 Jun 2007 Posts: 3051 428.03 Dollars($)

Hi fozman,

Welcome back.

I think if you can maintain one thread for one particular topic that will actually help us. BTW if you have been discharge from BK chapter 13 almost two years ago and have no late payments "over last 12 months" you should get approve for a mortgage.

Best thing that I can suggest you is that shop a bit for lenders. Even in this community there are thousand of lenders from all over the United States. You can even get free counseling at http://www.mortgagefit.com/ or may contact the lenders directly at http://www.mortgagefit.com/unitedstates/

Hope someone will help you.

Feel free to ask if you have any further questions.

Best of luck,
Larry

fozman68 · Joined: 14 Nov 2007 Posts: 24 10.49 Dollars($)

Hello Larry, I was going to keep on my other thread, but this just seemed to be a different situation. You suggest that I shop a bit for lenders. Well, I've been doing that, I'm working with my 3rd one now, and I'm starting to feel overwhelmed. I keep reading and hearing that I should qualify, but I'm not getting the pre-approval, that I'm looking for. If I could talk to an underwriter directly, I'm sure I could be approved, but I'm trusting a Mortgage specialist/broker, to communicate with the underwriter. I don't feel that I need the freee counseling at this point, but thanks, and I was thinking of reaching out to a couple of lenders from this site. Thanks for the input Larry.

Still looking for approval,
Ken

Samantha

Ok Fozman, I understand your situation. But can you tell me what are the reasons suggested by lenders for your denial? may be if you can eliminate the causes for denial, it will be easier for you to get approved.

I don't think any lender would allow you to talk to an underwriter personally.

What larry meant by free counseling is that you would come across a number of lenders to help you out with suggestions on what loan options you can get approved for and what you need to improve to get easy approval. So, you may give a second thought to it.

Alternatively, you can send your request for free mortgage quotes to the lenders in our community and see what rate they can offer you. I hope someone will be there to help you out with an offer. Also, know what happens after you request for free quote and only then apply for it. All you need to do is keep trying because yours isn't a situation where you won't get a loan.

Hope this helps...

God bless you.

Samantha

fozman68 · Joined: 14 Nov 2007 Posts: 24 10.49 Dollars($)

Hi Samantha,
The latest turn down I got said that I needed to show 12 months of no lates on my credit report. At the time they ran my credit, I was showing 2 accounts opened and late, within the last year. One was medical, that happened back in 2004 and the other was a collection company, collecting for a bank that my wife used back in '04. I was able to get that one removed, and the medical one is now over 12 months.
The big things on my credit are: Dismissed chapter 13, Oct. 2006, Last mortgage company showing lates up to 02/07, and that foreclosure was started, is also on there. I have gotten past this hurdle because the foreclosure started in '04. I then went into chapter 13 bankruptcy, then had the bankruptcy dismissed, and sold my house. I also show 2 repossesions, one from Oct. 2003, the other from 12/06. Other that those major items, the rest are medical bills (4 total)
I have 3 good lines of current credit, 16 months never late on car payment, 6 months on credit card #1, never late, and 4 months on credit card #2, never late.
Have never been late with Rental payments over last 14 months.
I don't mind putting this out to the public. I'm just looking to purchase my next home, and any help to get me approved would be great.
Thanks, Ken

Jessica

Ok, so the bankruptcy was dismissed. Well, that affects credit no doubt. But one of the repossessions is way back, almost 5 years ago. So, I don't think it should affect you this way. And you aren't late on credit cards either. But what about inquiries shown on your report? I mean the hard pulls, not the soft ones, the latter doesn't affect you in any way. Did you try out with FHA loans?

Regards,

Jessica.

fozman68 · Joined: 14 Nov 2007 Posts: 24 10.49 Dollars($)

Hi Jessica, I have about 5 hard pulls, on my report, and yes I have been trying to get a FHA loan, I haven't tried for any other type. I know that FHA, says 1 year aver Bankruptcy 13 dismissed, and it is. It's 18 months ago now. I know I should be shopping for different loaners but it just seems like my FICO score keeps going down.
Like I said before, I'm just looking to move on, and put this mess behind me.
Thanks,
Ken

fozman68 · Joined: 14 Nov 2007 Posts: 24 10.49 Dollars($)

Just heard from my latest Mortgage comp. as to why they couldn't help me.
He said it was my 2 repo's, were treated like judgments, and needed to be paid. I heard the before, from another company, but I didn't think that was going to stop me from getting a FHA loan.
Am I just kidding myself? Can I get approved?
I'm starting to wonder.
Ken

Jessica

Hi Fozman,

Welcome back to our forums.

Repossessions affect getting an FHA loan and they should have taken place over 2 years before you request for the loan. But one of the repossessions is about 5 years back. However, the fact remains that you haven't paid them. Perhaps that is the reason the company is not willing to offer you the loan.

Is there any way by which you can pay off the judgments on the repossessions up to a certain amount? You can request the creditors who filed judgments so that they accept the payments. Also, request them to report this to the bureaus as "paid and settled debt" . By the way, on which debts did you face the repossession?

Regards,

Jessica

enriko · Joined: 05 Mar 2008 Posts: 61 16.64 Dollars($)

which debts did you face the repossession?

fozman68 · Joined: 14 Nov 2007 Posts: 24 10.49 Dollars($)

Jessica,
I know that repossesions affect getting a loan, but FHA, doesn't have any guidelines that says if I have them, I must wait 2 years. I haven't paid them, because they don't deserve to be paid. (long story here).
I didn't quite understand your last question, regarding which debts did you face the repossession?
Ken

fozman68 · Joined: 14 Nov 2007 Posts: 24 10.49 Dollars($)

Still looking for more advise on this subject. Should I move forward and try to get a mortgage or just continue to rent? I really hate renting!

helping_user · Posted: Wed Mar 19, 2008 4:22 am Post subject: RE:

Hi Fozman,

It depends on the lender as to how seriously he would consider your repossessions because in case you cannot repay the loan he losses money. So, he wants to make sure that you can repay.

Hey don't lose hope, have you tried with mycommunitymortgage? I don't know whether it would be exactly suitable for you but it may be worth going for. If you can attend a counseling with the lenders here, it may help you know about more options. I think it helps. Smile

Thanks.

fozman68 · Joined: 14 Nov 2007 Posts: 24 10.49 Dollars($)

Just an update, had another company say "No", this time it was Amerisave Mortgage. Their underwriter said that the credit report stating Foreclosure started is what killed me. Even though I sent them my HUD1 form, and letter from Mortgage company, saying congratulations.
So, between that and my repo's, I keep getting no's.
How do I Fight my Credit Report? The Foreclosure started back in 2004, this is why I went into chapter 13. I have my info with 2 other lenders at this time, but I'm starting to wonder. In my heart, I know I can be approved, but I havn't figured out how.
Thanks for listening,
Ken

larry · Joined: 27 Jun 2007 Posts: 3051 428.03 Dollars($)

Hi Ken,

Welcome back.

You have sold your house after getting dismissed from the chapter 13. But did you sell it through foreclosure. If not then the foreclosure should not been shown on your credit report. Then I think you should talk to the Credit Bureau to remove the foreclosure.

But if you have gone through foreclosure then it will be very difficult for you to get approved for mortgage. Can you please give details about your employment and credit so that we can help you better. BTW it will be difficult for you to get approved for a mortgage with good rates and terms if you don't have 660 to 680 credit score.

Best of luck,
Larry

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