I am being forced into attempting to buy a home before I am ready. The lender wants everything on my husbands report cleared up. I cannot pay it! He did offer to fax over any letters I have, as well as deletions from one cra to another. Has anyone ever had a lender help in this way? Do they have any kind of "pull?" He said they have their own agency from which to pull the report, and he has asked for an "updated" report. Help! I am so scared we won't be approved after all my hard work....
Who is forcing you, the broker, the lender, or your significant other...don't let the lender or broker force you into ANYTHING before you feel you are ready. Tell them you will call them when you are ready and if that is not acceptable to them then you will have to look elsewhere for another broker/lender who WILL get your business when you ARE ready. -Peace, Dave
If you DON'T "QUALIFY" (due to credit report)...they DON'T GET PAID!!! BUT you have to be careful...they (the "BAD" guys) MAY play hard-ball...(when a mortgage is involved).
Yeah, but they don't much care what your interest rate is - speaking from experience here. As long as the deal goes through, they get the $. I'm not sure if it's on a % basis or a flat fee, might vary broker to broker/state to state.... but I bet they'll get you approved - you'll just be paying dearly for the approval if you're not in or close to PrimeLand. Ozzy.
Sorry, I was tired when I started this thread and did not realize I left out the important details! It is the landlord who is forcing me because she wants to sell the house we live in. We have no lease, it expired in 1998. I don't know how it is anywhere else, but here I found that the payment will be the same on a new house as on an existing home because of the interest rate offered on the new homes. The lender pretty much told me we will not qualify unless everything is gone or paid. I don't have money to pay anything off. We would definitely not qualify at a higher interest rate. We are looking at only 4.5% the first year. Thanks for your replies! Do you guys think there is any chance that the lender faxing my letters to the cra's will carry any weight?
Unfortunately no. I think they will weigh the same. Although I am not sure how they could even do that, I was under the impression that you were the only person who can dispute the information on your report, but I guess power of atty or something could allow them to do that (though I would be reluctant to sign such power over to anyone). Have you tried negotiations with all the creditors to see what they would settle for? Maybe you could get away for less than you really owe. Always get things in writing, and ALWAYS negotiate for a minimum of complete deletion of all derogatory information. Then work on price I also remember reading something on the board about rapid rescoring: (search for more using "rapid rescoring" but here is a link to one post) Not sure what else you can do quickly, disputing and validation work but tend not to provide fast results. I would say collecting all your evidence and filing a lawsuit in hopes of settling for deletion would be your fastest way to clean reports...but that too takes time and you need to make certain you have proof so that the suit does not turn against (proof which you may or may not even have I don't know). Maybe someone else has some ideas but that about cleans me out. Good Luck!! -Peace, Dave
What lender are you working with?? Have you tried a broker?? You stated 4.5%, exactly what kind of loan are you trying to get??
It is Wells Fargo. The loan is called a 2/1 buydown. The interest rate is 4.5% the first year, then 5.5% the second and 6.5 years 3-30. This is for a new home. For an exisiting home, I would pay 7.5%.
Isn't the loan CONDITIONAL on QUALIFYING, and the interest rate??? I WOULD NEVER ACCEPT 15% MORTGAGE!!!
The purchase of the home is conditional on approval of the loan. I just need to be approved so I have somewhere to live!!! Even then, I'm not sure the landlord will let us stay until a house is built. I don't want to make the same payment on a 30 year old house because the interest rate is higher. I want to be approved for the new house!!
Oh sorry i thought you wanted to buy the house you are currently in. Well to be honest those 2/1 buy down rates are low and they usually require a good score. You may want to try an existing home and go for the 7.5 %??
Terri, I was in a similar situation when I purchased my home. I know the urgency that you are feeling. I am unfamiliar with the 2/1 buydown loans and rapid rescoring. But I do suggest researching first time home buyer programs in your area, in case you need a plan "B". Your city, county and state may all have programs to assist first time home buyers with their home purchase. Currently in LA county and the state of California those loans are around 6 to 6 1/2 percent. The prerequisite for these loans are 24 months of perfect payments and a GOOD explanation for the collections/late payments. Some may require income qualifications. The problem with these loans can be time and they ask alot of questions. They can be 60 days or more to close instead of thirty days. Your current mortgage broker should be the first one to ask. My ordeal began the day before Thanksgiving 1996 and I closed on my house right after Memorial Day 1997. Good Luck KK
