DaniellaM

Congratulations!!!

Closed on schedule. Thanks again for all your help, especially liverichly! Would post a pic but I don't know how

Looks like they're on track to finish on time. From what I can tell, the stuff that's left to finish can be done by the beginning of next week (of course I don't know anything about building houses). Excited but a bit concerned. Is it normal to finish building a house in a little over a month?

According to the builder, they are on track to finish by 9/25. The reason I was concerned is that my rate lock expires (?) at the end of September. Also my current lease is up at the end of september as well.

So thanks to the help I got from this forum in my previous post, I was able to get approved by the builders lender in the subdivision and neighborhood that I liked. All paperwork including contract and picking options was completed on 6/25/2014 and I wrote a check for the earnest money on that day. A closing date of 9/26 was set. A few days later I went on vacation out of the country for two weeks. The plan was to have the pre-construction walk through after I got back on 7/15/2014. When I got back I found out the land had not been graded and the meeting was pushed back one week. Soon after, the date was again changed to a week later. The pre-construction meeting took place on 7/29. We had some concerns abt the house being too close to the street and wanted it pushed back. At first the builder didn't want to do it for a number of reasons, but then agreed to push it back 10ft. It took two weeks from that date for them to lay the slab. A week later (yesterday), the 1st floor has been framed. I am worried that they will not be able to finish the house by the close date. If they do finish it, will it be well built? Has anyone had experience with this?

So what will make this contract binding? I have already signed paperwork agreeing to the house/lot/price?

The LO did send me an itemization (financial illustration). I am out of the country and we are only able to communicate via e- mail, so it is hard to get answers as quickly as I would like.

Brian as far as I know, all these triggers have been pulled.

How much would mortgage insurance be for a purchase price of 281,238? I tried to calculate it and it's not coming out to what is in the itemization I was sent.

So much has happened since the last time I posted. I went to the subdivision that I liked on 6/17 and decided on a model with the salesperson. He gave me the information of their preferred lender and I contacted them the next day and moved forward with the loan application. The broker stated that because the ratio was above 45 he would have to send it to underwriting for a "full approval?" In the meantime he issued a prequalification letter and my realtor and I went in and completed the paperwork with the salesperson. I picked out all of my upgrades and the final sales price is ~280k. I wrote a check for part of the earnest money at that time and the second part of the earnest money is due during the walk through??? I received the "full approval" on 6/26. Now the lender has sent me a financial illustration and wants me to lock in the rate today. I have not received a GFE which my realtor states needs to be provided to me. The broker says that he can't give this to me until the contract is binding? I have read that this is not the case and a GFE needs to be provided to me 3 days after application. Any advice on how to proceed?

Thank you liverichly for that breakdown. From talking to the different banks, it seemed like it would be almost impossible to obtain a mortgage with my debt and scores. The only thing I can think of is that they were not including FHA loans. I knew that scores didn't have to be as high with FHA loans, but I had no idea that DTI could be as high as 56.99 until you mentioned it the other day. I thought it was 43% for all the different types of loans. I had given up on the idea of buying a house, and almost didn't write my original post because I was so sure that everyone's response would be to pay down my debt first. I'm glad I asked and I am so excited at the possibility of starting the home buying process!

I tried lending club and was denied. The high utilization is killing me.

The minimum payments on my revolving debt is about 1600. I have asked for increases on most of my cards but was denied. Where do I find out about the FHA loan that does 56.99 dti? I will try to recon the loans that I have already applied for. I will also try going to a local credit union to apply. Thanks for the suggestions thus far!

walmart card, discover card, psecu. Also scores provided to me after applying for credit.

I am a physician, a little less than one year out of residency making $170k a year. My scores on all three bureaus are in the 650s. I have no negative information on my credit report. I have high revolving debt totaling $65K, with about >90% utilization. This was due to living off of student loans and credit cards during medical school and residency. I pay $1050 in student loan payments a month, but have $1060 worth of additional payments that would count towards my DTI ($780 payment is a loan that is still in deferment, and $280 payment on a loan that I cosigned for someone else). My other debt is $1168 in car payments. Right now I know my DTI is too high and I have been working on paying off my credit card debt with the snowball method. If I stick to my current schedule, it should be paid off in 3 years. I had planned to keep renting until I paid off my revolving debt, but my current lease is about to end and I don't want to renew the lease because I am not too fond of the landlords. I can't find any other houses that I would want to rent, but I have found a few for sale that I like. The sale prices of the houses I am looking at range from $225K-$300K. A few banks around here offer a physician mortgage with 100% financing and no PMI but they require a credit score of at least 680 and DTI of less than 43%. I plan to get rid of $667 in car payments to help with DTI and could get rid of the other $501 if needed. I know the revolving debt is the reason my credit score is so low and I have tried to apply for a personal loan to consolidate the debt with a few credit unions but have been denied. Any other suggestions on what I can do to get my scores up and debt down to qualify for a mortgage in the next 3-4 months?