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Getting the Credit Agencies to hit F5
PantsB
Fake Thomas JeffersonRegistered User regular
Fake Thomas JeffersonRegistered User regular
Here's the situation: My fiancee and I are going through the mortgage process. We both make plenty, can afford the 10% down (but not 20%) on a house that we have picked out. In the pre-approval process in April we were fine, there were no issues.
Unfortunately, it seems I missed a credit card payment in May and this completely f'ed my credit score into the very high 600s instead of the mid-to-high 700s. Kinda sucks and it pushed our rate up slightly but not the end of the world. This might not be as terrible an issue but the sellers set a very aggressive letter of commitment date, and although we got them to push it back half a week, its still 15 days away. We put in the paperwork late last week and everything seemed OK.
Until yesterday when our mortgage officer called and said that my credit score meant we would likely not get PMI (private mortgage insurance) which since we were putting less than 20% down meant the whole thing was going to be fucked.
I managed to talk my credit card company into wiping my one mistake since a) they didn't update my cc address when I changed everything else and so had been sending my bills to the wrong place and b) I was otherwise clean. Both the representative and the credit specialist said the update would happen right away but sometimes it takes a few days for the credit report to reflect this.
The problem is the timeline. Experion updated in under 24 hours, but they take the low person's middle score, so the two remaining scores (Equifax and Transunion) not updating yet still means we're kinda screwed.
Now she would also qualify for a mortgage by herself but she's understandably reluctant to be the only one on the mortgage officially. While the Subcontinental phone representatives I finally was able to get to for the two remaining services weren't rude, they were not particularly helpful. Our mortgage guy thinks in order for this to be done in time it has to go in ASAP, as in today. The credit score could be updated in the morning or it could be updated after the deadline, putting the entire deal in jeopardy.
Does anyone know of a way to get them to update the credit report more quickly? Or have any expertise in this area that could provide me with some relevant information?
Unfortunately, it seems I missed a credit card payment in May and this completely f'ed my credit score into the very high 600s instead of the mid-to-high 700s. Kinda sucks and it pushed our rate up slightly but not the end of the world. This might not be as terrible an issue but the sellers set a very aggressive letter of commitment date, and although we got them to push it back half a week, its still 15 days away. We put in the paperwork late last week and everything seemed OK.
Until yesterday when our mortgage officer called and said that my credit score meant we would likely not get PMI (private mortgage insurance) which since we were putting less than 20% down meant the whole thing was going to be fucked.
I managed to talk my credit card company into wiping my one mistake since a) they didn't update my cc address when I changed everything else and so had been sending my bills to the wrong place and b) I was otherwise clean. Both the representative and the credit specialist said the update would happen right away but sometimes it takes a few days for the credit report to reflect this.
The problem is the timeline. Experion updated in under 24 hours, but they take the low person's middle score, so the two remaining scores (Equifax and Transunion) not updating yet still means we're kinda screwed.
Now she would also qualify for a mortgage by herself but she's understandably reluctant to be the only one on the mortgage officially. While the Subcontinental phone representatives I finally was able to get to for the two remaining services weren't rude, they were not particularly helpful. Our mortgage guy thinks in order for this to be done in time it has to go in ASAP, as in today. The credit score could be updated in the morning or it could be updated after the deadline, putting the entire deal in jeopardy.
Does anyone know of a way to get them to update the credit report more quickly? Or have any expertise in this area that could provide me with some relevant information?
PantsB on
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i really hope we come out of this 'economic troubling time' with a different system in place... maybe... say... the loan officers taking the time to research your history, rather than sitting on their thumbs and paying a rating agency to do it.
that said... i can't help you, sorry
i mean, if you haven't put down any money (i forgot the exact process; but, i remember i had to put like $1000 down before i was actually 'committed' to the purchase), then the whole process can wait. don't let the mortgage guy pull a dick and try to push/pressure things through when they really don't need to be (as far as you're concerned).
Which makes no sense if you think about it but ::shrug::
That's what was suggested to us but it does put my fiancee in a bad spot. Should we break up or lose our jobs or die or whatever it means all the obligation is on her.
But now the issue is in order to have the mortgage under just her name it would require us to restart the entire process from the offer which might not only kill the deal (the sellers are kinda a-holes) but leave us homeless or back in our parent's homes for a month at least and probably cost us the nearly 6000 already put into the deal (banking fees + good faith payments). So we're going forward and hoping that at least one of the remaining two credit agency correctly updates in the next 15 days.
QEDMF xbl: PantsB G+
The whole process is no fun, but it is what it is. Look at your options, and see how badly you want that specific house. If that’s the one, then have your agent talk to the sellers’ agent and try to get some wiggle room. Then talk to the bank and get them to give you some time to get the report straitened out and see if the reporting agency can give you an ETA on the update.
If its not going to work, its not going to work. Talk to your agent about the good faith payment, your offer on the house should (hopefully) have had some contingencies to allow you an out. like, if you don't like something in the home inspection, or if it was contingent on you getting financing.
I'm closing on our house on the 15th, and on the contract there was actually a line item saying the whole thing was contingent on our loan. It sounds like yours is a standard mortgage of some type, wheras mine was an FHA, but I wouldn't think they were all that different. When we first went over the initial contract, my agent told me because of the laws in Alabama, we would probably even get our ernest monies back if the worst happened. The home inspection and appraisal fees were monies we would NOT get back, since those are fees for services rendered. YMMV depending on your state's laws.
The other person to talk to is your mortgage agent. My mortgage agent is a kindly man who reminds me of The Cat in The Hat, and he's told me that if anything changes with my "situation" (employment, whatever) to let him know and we can make sure I can pull out as gracefully as possible in terms of getting my deposit back, etc.
Having contingences in the contract that deal with your financing coming through or not are standard and they should be there, so while I know you want THIS house at least you can look at it as if the worst case scenerio is you losing the house and not your good faith payments.
Inspection and appraisal are sunk cost, forget about them like thundyrkatz mentioned.
Which is not to say that they don't still occasionally do it, but the requirements for that these days are quite high.
Backlog Wars - Sonic Generations | Steam!
Viewing the forums through rose colored glasses... or Suriko's Ye Old Style and The PostCount/TimeStamp Restoral Device
Yeah they basically do not do that anymore, essentially ever. I asked at pre-approval (where the low credit score was in the 750 range, and debt-to-income ratio was under 20%) and it wasn't a possibility at all
That is the case and we're going forward partially based on this. The situation as it was explained by our agent was if we went back to the offer process now we would basically be conceding we had not made a good faith effort to get a mortgage which is pretty much the only way for us to lose the money (other than inspector and banking fees) already sunk. We may even technically have to get the place inspected again. Best case scenario is it would extend the time this process would take by several weeks. Worst case is we're out a house and a few thousand dollars.
The credit score only becomes an issue when the PMI is approved by the underwriting engine, which as I understand it is actually an independent process that takes place after the mortgage itself is approved by the underwriters. At this will most likely be as many as two weeks from now by that time it should be OK. Additionally we have some written assurance from the bank that if we do it this way we'll have written proof that will be sufficient to get our money back.
Who would have thought signing your life away would be so stressful and complicated.
QEDMF xbl: PantsB G+
Tell me about it, I'm there now. 3 years Married, 26&25 years old, both with a bachelors, 2 mo old baby, working professionals, saving up to buy our first house. We have student loans, a baby, car payments, plus we need to keep a cushion in our savings, contribute to our 401Ks, save for a downpayment, have extra leftover for when we've had the house for 2 weeks and X needs repair/replacing.
Oh and we probably need to save some MORE money to buy things to fill this new house once we move in.
/sigh
It's all about not buying shit you don't need. Didn't have the parent's basement luxury either, was paying about 6K in rent each year before this. I'm in my mid-20s, btw
Backlog Wars - Sonic Generations | Steam!
Viewing the forums through rose colored glasses... or Suriko's Ye Old Style and The PostCount/TimeStamp Restoral Device
Cry me a fucking river. Anyone still confused about the whole banking/mortgage crisis, this right here explains it all. 80/20 loans are a fucking scam. If you can't save up 20% then you either need to lower your expectations from the 4bdrm, 3bath, pool, 2 car garage, granite countertops and roman tub to a more reasonable home built back in the 80's, or learn to better manage your finances and cut costs. People seem to think they are entitled to a home the day they graduate college. Sorry, no, you are not. But because of your endless whining and the banks seeing a bunch of desperate people we ended up with b.s. 80/20 loans and now people are crying foul when their once cheap mortgage suddenly skyrockets. I also love the fact that you whine about having to wipe out your savings to get a house, as if credit is something everyone should be guaranteed. Talk to your parents and grandparents and ask them about their experience buying their first home. Also ask them what interest rate they paid on that home.
Anyway, best of luck to you, but I'd call up the other two and endlessly bother them as much as you can, or file a dispute on their sites to get it removed (I had to have one of them remove my dad's bankruptcy off my credit report, and they removed it within a couple of days)