OH. MY. GODS. My boyfriend just telephoned in a loan app to his credit union (USAA) and got approved! At an A loan paper, 6.875 percent!!!! BUT the loan officer want me to call and "explain" some things on my credit!!! In a letter??WHAT DOES HE WANT??!??! He also said one charge off would need to be satisfied, no biggie, but I'm SCARED that he's going to talk to me, I'll say something wrong and he'll deny us after all. I have some late pays, a charge off, low balances though. And good income. Good lord I'm in panic mode (could you tell? LOL) Any advice before I call the man?? Please? I love you guys. Sarah
That is actually standard procedures. They just want to verify the late payments before the loan goes to the underwriters. Don't be affraid it happens often. I got a loan for 6.875 in Oct for a credit score of 675(At the time) since then it has decreased because of added debt and inquiries. 644 eq
Hey sweetchild! But...when you say verified, what's that mean? Does he want me to say "yes, I paid late, sorry about that" or is there something else I should say in the letter? me and my squeeze are reallllllly into this one house and I don't want to screw it up.
Actually they just want to know why it was late. Never tell them you lost your job or anything that would suggest that you could have money issues again. I had a few late payments on my report and I was prepared to make something up like I was switching banks and was waiting for my direct deposit to kick in blah blah blah... but they never asked.
ok so I called the guy and he said that I'd need to send in an "explanation letter" for the negative items on my credit report. I think I understand what he wants, but don't want to sound like a big loser. Does anyone have any experience with this kind of thing? He said just a letter for the underwriter....is this common as well?
That's very common. Just explain what happened in a way that leaves you in the best possible light! As said before, no employment or income issues should be mentioned. cariba
This is standard procedure and while it is not fun you can do this. Try to give a reasonable explanation, and that reason will probably be the same for all the items if they are about the same time. An example might be if you had a couple of store accounts and a visa that you stopped paying in say 1998 because you had to take in a sick aunt and you tried to work something out but could not. Depending on your broker they may take a look at a draft letter and suggest some changes before you sign a final version for the underwriter. My broker did. They want to loan you the money. This is how they make money. Congratulations for making it this far! John
