...are our chances still good that once they do the underwriting we will still get the loan? We are nervous, trying to start a family and this is our first home for both of us.
2007-03-20 07:23:55 · 4 answers · asked by BellyRubz 3 in Business & Finance ➔ Renting & Real Estate
If you have been pre-approved, showed your mortgage broker enough information and documentation to prove income, verified assets and have an approval from the mortgage broker's underwriter then you are pre-approved and should not have any problems in the end.
Now of course there will be additional information and documentation required, but this is normal, so don't get all excited about the additional information and documentation.
There is nothing wrong with using alternative information and documentation as proof of income. This will get you into the house.
The thing you have to remember as a home buyer is the type of loan you are getting.
Most are jumping up and down about a fixed rate loan, some are not qualified to get this type loan what you have to remember is if you need or is getting an Interest only loan, make sure that when the time comes that you will need to refinance you will be in a position to do this. You need to be preparing for this refinance date from the time you get your loan. This should not be a surprise to you 2-5 years down the road. Your loan docs will indicate this and you will be signing these loan docs.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-03-20 07:46:17 · answer #1 · answered by Skip 6 · 1⤊ 0⤋
By alternative credit, you mean that you had to provide evidence of timely payment of your utilities, rent, cell phone, etc... because you don't have enough traditional tradelines showing up on your credit report, right?
My main question for you is: What type of financing are you actually getting? If you are hearing 2/28, subprime, or anything offering a short-term ARM, find a new lender.
With alternative credit, you should be able to qualify for a number of great fixed rate products. FHA. Fannie Mae's My Community. Freddie Mac's Home Possible. Wells Fargo's Home Opportunities. etc... Every major bank has a proprietary fixed-rate loan designed for exactly this situation. You'll find rates from 6.25-6.75% for a 30-40 year fixed rate loan in today's market. Mortgage insurance ranging from .6-1.25% on top of the rate.
Your lender might not want to tell you the name of the product he's using, for fear you'll shop that same product with other lenders. But if your terms don't match or aren't better than what I've mentioned above, you need to keep looking.
Email me through here if you have further questions.
2007-03-20 14:40:17 · answer #2 · answered by Yanswersmonitorsarenazis 5 · 1⤊ 0⤋
Pre-approved means just that. Pre-qualified is a different story. If you have been pre-approved, you will be fine. Think twice about anything other than a fixed mortgage though...refinancing as your ARM comes due is costly (there are closing costs associated with each re-fi), especially if you are just starting out.
good luck!
2007-03-20 14:32:30 · answer #3 · answered by Enchanted 7 · 1⤊ 0⤋
What type of alternative loan? My advise... fixed 30 year or nothing. Those alternatives are scary! And I have seen some real bad things happed because of them. Run, run as fast as you can!
2007-03-20 14:30:29 · answer #4 · answered by Tara R 2 · 1⤊ 2⤋