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mrokuk

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  1. Thanks for yr post, my instinct is to just be honest about everything, but I'm worried that they won't approve if it's partially to purchase another house. We have plenty of cash on hand and good credit so perhaps I'm just overly worried since we are relying on this cash-out refi to finish the purchase and the timing is tight.
  2. interesting @centex - do you think we should just say construction then? Our primary residence is appraised at $1.6M and the total new loan is $600k ($250k cash out)
  3. Great wording, thanks @cv91915 ! The LO was baffled since all of the inquiries were from his own company, 3 months ago. We ended up being completely honest about the house purchase AND home improvements at the LO's advice "Why should they care what you want the money for as long as there's no new debt acocunt?" So we'll see how it goes! The LO we had last year from the same company was great, but then he wouldn't return our calls so we went with a new random one from the same company. If they can pull off our timeline and not mess up our second home purchase, all will be forgiven! Thanks again!
  4. Thanks @cv91915 - Really appreciate your feedback and sample letters. I worry that the Loan Officer is too green to handle these issues (they had never heard of reamortization). Will talk to them and get some help even if it kills us!
  5. We are using the cash-out refi money to pay cash for a vacation house AND cover some home improvement costs on our primary residence. Should I still only say home improvement, or mention the home purchase as well? Is there a chance they would request documentation and see that the remodel costs are lower than the amount we're taking out? I want to be truthful but worry that they'll freak out about the real estate purchase.
  6. Current Loan: $345k New Loan Amount: $600k (+250k cash out refi) LTV 37%
  7. Hi, I'm looking for a cash out refi and the underwriter has come back with a strict questions that I'd love help to answer- our credit is 780 and everything has been smooth sailing until now. 1. Provide explanation for purpose of cash out refi I originally told the mortgage broker that this was for home improvement, which is halfway true- we also want the cash-out refi cash to purchase outright (no mortgage) a vacation home. Any advice on how to explain this in a signed/dated letter for the underwriter? Just say "for home improvement" and be done with it? or indicate that it's for both? Our debt to income ratio shouldn't be affected by buying the vacation house outright. Complicating this is that we had a pre-qual letter drawn up in June from the same mortgage broker, and the underwriter is ALSO asking us to explain all CR inquiries from the past 90 days (I believe that's the only one)- this is back when we were considering getting a mortgage for a second house instead of just buying it with cash-out refi funds. 2. Notice of Default and subsequent cancel from 2011 We had a default on our primary house mortgage in 2011 and the next month paid it off- this is off my credit report, but I guess the underwriter found it on the public records search? Any advice on how to explain this to the underwriter? We had autopay but moved banks and didn't catch up until after 90 days. So frustrating that this is from over 7 years ago! Also we got a refi from the same mortgage broker (non-cash out) back in December, so it's odd that this public record is coming up now instead of last year. Thanks so much creditboarders!
  8. Thanks for the warning Sniper and for the citations cv.. some good balance in both of your responses. Appreciate it!
  9. I'm refinancing from an exploitive ARM 4.25% into a 3.0% 15-year fixed. Current mortgage is in my name and only I'm on the deed. Spouse would like to be on the mortgage and deed, if possible- what are the advantages/disadvantages? Can she even get added to the deed during a refi or is that a discussion for a later date? I owe $389k on the house, value 1.2M. California resident, community property, but I bought the house 18 years ago- before we were married (7 years ago, together 13 years). My scores are 715/776/792. I think hers are higher since we just paid off student loan. My verifiable income is $185k, hers is $72k, we have joint checking account and plenty of savings. Thanks CB for any thoughts on this! Feel free to use this thread to vent if you added spouse to mortgage and now regret it
  10. Hah I just applied for Citi, amex.. both rejected. Then I realized that I froze my CUs after equifax breach-- oops! Will try again after unfreezing.
  11. Happy to help. Quicken is a hard-sell organization, akin to a used car dealer. The few times I've checked their rates/fees I couldn't possibly find anyone higher, and yet they still have substantial market share. Don't let them suck you in unless you do the math yourself against other options and are 100% sure they are the most cost-effective option (interest rate, fees, everything). Rather than go through the expense ($thousands) of a second refinance down the road, just make a lump sum additional principal payment at that time. This will immediately lower your interest cost based on your new balance. Of course, your payment stays the same as before, but by that time your budget should be accustomed to the original payment amount. If you are intent on reducing your monthly payment after making a lump sum payment, many mortgages allow you to recast (re-amortize) your loan following a lump-sum payment (for a nominal fee; ours will do this for $250). Recasting takes your then-current balance and applies the interest rate on your note to the months remaining on the loan - and recalculates your payment accordingly. It can take a few months for the re-amortization to kick in, but it beats paying thousands in lender and third-party fees for a refi. If this option interests you, make sure your originator is aware, and that the loan you are seeking includes this option. Not all do. Yeah I don't plan on going through Quicken, and will ignore their further contact details. Thanks for the info about re-amortization, that really looks like what I'm interested in. My DW has ~40k of credit line that I could get added to as an AU- her TU FICO 8 is 808 (after my diligent cleaning up of some student loan baddies)- instead of getting new CCs, that should give me an (unnecessary for mortgage) bump in terms of available credit as well- what do you think?
  12. Great idea- I last did this in 2015, I think, and nothing bad came out. I'll go for quicken today I guess.. If you're looking at May to refi, consider adding a CC or two to your profile. Find a card or two that the rewards/benefits fit best into your spend/lifestyle. I'd probably go: 1. Take a hard pull CLI with a Barclays Analyst 2. Hit Disco luv button 3. Hit CapOne luv buttons 4. App a new CC or two 5. Run a mortgage pre-qual You'll probably double or triple your available revolving credit in 24 hours and hopefully have some good sign up bonuses and new ways to maximize the return on your spending. In six months, none of the INQs or new accounts will have any negative effects and you'll have been able to deal with any of the cockroaches. Great perspective, thanks. 1. I already got Barclay's CLI increase in Sept 2. CapOne luv button only got me 200 increase (2000->2200) in Sept. 3. Discover said no! Too fresh a card! I just tried again and they said no again (SP). 4. Any recc on new CC? I opt'd out of all the CC offers and am overwhelmed by all the CC recc posts on CB. 5. Did the pre-qual, thanks! What an ego boost to see that I was in 500s for almost a decade, and now up to 793, even after a foreclosure and multiple tax liens. Re: #4- it's tempting to get a new CC but I will probably try and refi ASAP- I'm also tempted to wait a few months so that I can further pay down my principal at least $50k (holiday bonus coming up). I edited my post because we crossed paths. CC's are really personal regardless of the blogs and such. You need to add up all of your spending that can be done via CC and separate by category, and then see where the addition of a couple cards would be beneficial. I didn't know you'd recently hit up all of your cards for CLIs. Bummer because your reports will look so much better now. I also wouldn't be too worried about applying for 1 CC before your refi. Your scores are well over 740, and the new account hit will actually be somewhat balanced out by the addition of a 5th revolver which FICO gives you brownie points over. No UW is going to whine about a CC when you have 780's and $700K in equity in your refi. Hah well I just applied for Chase Freedom Unlimited and was negged- maybe too many inquiries or because one of my derogs from 7 years ago was a Chase charge-off? I'll know soon enough. I love the idea of approaching a new CC by category of spending- I have my own raw numbers- by any chance is there a master CC by spending category thread anywhere?
  13. Great idea- I last did this in 2015, I think, and nothing bad came out. I'll go for quicken today I guess.. If you're looking at May to refi, consider adding a CC or two to your profile. Find a card or two that the rewards/benefits fit best into your spend/lifestyle. I'd probably go: 1. Take a hard pull CLI with a Barclays Analyst 2. Hit Disco luv button 3. Hit CapOne luv buttons 4. App a new CC or two 5. Run a mortgage pre-qual You'll probably double or triple your available revolving credit in 24 hours and hopefully have some good sign up bonuses and new ways to maximize the return on your spending. In six months, none of the INQs or new accounts will have any negative effects and you'll have been able to deal with any of the cockroaches. Great perspective, thanks. 1. I already got Barclay's CLI increase in Sept 2. CapOne luv button only got me 200 increase (2000->2200) in Sept. 3. Discover said no! Too fresh a card! I just tried again and they said no again (SP). 4. Any recc on new CC? I opt'd out of all the CC offers and am overwhelmed by all the CC recc posts on CB. 5. Did the pre-qual, thanks! What an ego boost to see that I was in 500s for almost a decade, and now up to 793, even after a foreclosure and multiple tax liens. Re: #4- it's tempting to get a new CC but I will probably try and refi ASAP- I'm also tempted to wait a few months so that I can further pay down my principal at least $50k (holiday bonus coming up).
  14. Update: I called Quicken Loans for a pre-qual to coax out any riff-raff.. they said I was at 793 for both Experian and Transunion and 722 Equifax-- sounds like the Experian deletes and 0% utilitization have gone through! and I don't need to wait for the last baddie to go off my Equifax report. What's next: I recently cashed out some stock so I need to check with my tax attorney to make sure I'm withholding enough in taxes, but the plan is to pay down $440k mortgage balance as low as I can to refi into a 15 year fixed, possibly refinancing again after two years if another stock ship comes in and I can pay the principal down significantly more- so I don't think paying points makes sense in this case. Thanks Konrad2012 and cv91915 and AustinGuy907 for the encouragement and advice!! @AustinGuy907 I think the goal isn't just to get my scores but to scare any collection people out of the woodwork, right? Hard hit seems like it's okay since I'm shopping for a mortgage now anyway. We'll see!!
  15. Great idea- I last did this in 2015, I think, and nothing bad came out. I'll go for quicken today I guess..

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