Close

See current mortgage rates on Zillow Mortgage Marketplace

Profile picture for donxken

UNDERWRITER DENIES LOAN DAYS BEFORE CLOSING!!!!!!!HELP!!!

I am in the midst of my first home purchase, was pre-approved through our lender and now we are already late and had a extension for our close date and my lo is telling me that my loan will not be approved by the underwriter. They are stating that because my credit report has a few authorized users trade lines on it my FICO score is not correct and can't be used. So now they want to move me into a higher interest rate loan and have the option to try and refi in a few months after I clear the authorized users of my report. They are telling  me this days before I am suppossed to close after gettin an extension.Should i settle for the higher loan or start all over with a new lender. I can't believe they waited this long into the process to tell me they wont approve, is there anything i can do? 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 01 2012 - Brea
We think we've answered this question for you!
 
 

Replies (10)

How many accounts do you have in your name only?
If you don't mind answering the following I would like to know the rate. down payment, and type of loan you thought you had and what rate, down payment, and type of loan they are proposing going to. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 01 2012
[promotion deleted by Zillow moderator Please see our Good Neighbor Policy]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 01 2012
Profile picture for donxken
B/T me and my wife 20 revolving accounts, with 7 as authorized users mostly store/gas cards although there are two that are heavily used accounts by my parents. 

We were locked at 4% rate, 10% down, and now a 4.625% with 10% a portfolio management loan.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 01 2012
Interesting. I believe you would have to use the rapid rescore process to make those changes in 4-5 days which would cost aprx $30 for each acct and each bureau so $90 on each acct if they are reporting to all 3 Bureaus. Without using rapid rescore it could take 1-2 months depending on a couple factors. It was my understanding the Credit Bureaus fixed that so the AU accounts were held out of scoring.     
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 01 2012
That's a new one on me! 

As for the refi in a few months BS they are selling you; don't buy it. The chances of you refinancing in a few month are zero. You will have the 4.625% rate for a while so if you decide to close, do so without the dangling carrot of a quick refi. It might be worth a second opinion if you can get another extension. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 01 2012
Is the 4.625% rate an Arm?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 01 2012
Profile picture for donxken
fixed rate, in speaking with my agent, seller can only extend me 2 more weeks before our deposit comes into jeopardy, so they kind of got us check mated into their loan
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 01 2012
By chance was this an FHA mortgage you were approved for originally? 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 01 2012
In all honesty the fact that you have authorized users on your account should not matter. Your score is your score when it is reporting it sounds like you have plenty of trade lines. Clay is this a standard rule? I personally have never heard of it. It sounds like a bate and switch. A 4.625 is pretty high right now for a 30 year fixed. Also are you getting mortgage insurance or is the lender paying for it.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 02 2012
In all honesty the fact that you have authorized users on your account should not matter 
========================
Fannie Mae selling guide: B3-5.3-06
"Manually underwritten loans, credit report tradelines that list a borrower as authorized user cannot be considered in the underwriting decision....."

B3-5.3-09:
(DU loans) DU takes authorized tradelines into consideration in running the DU risk assessment. However lenders must review the credit report tradelines to ensure the tradelines are an accurate reflection of the borrowers credit history.



in a nutshell- ask them to manually underwrite the loan to Fannie Mae standards.. Many LOs hate to have to have a loan manually underwritten because if they weren't an LO in the 90s they have no clue how; but that's no reason you should pay more for their laziness.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 02 2012
 
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
Related Discussions
UNDERWRITER DENIES LOAN DAYS BEFORE CLOSING!!!!!!!HELP!!!
Profile picture for Norm  D Plume
Latest reply by Norm D Plume
May 02 2012 | 10 answers
Is it possible to get an loan with 10% down to purchase a rental home?
Profile picture for mrg11
Latest reply by mrg11
August 25 2009 | 12 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 1111 Berenice Dr, Brea, CA Home For Sale
    1111 Berenice Dr, Brea, CA 92821

     For Sale: $795,000

    • Beds: 4
    • Sqft: 2849
    • Baths: 2.0
    • Lot: 11000
  2. 3106 Puente St, Fullerton, CA Home For Sale
    3106 Puente St, Fullerton, CA 92835

     For Sale: $895,000

    • Beds: 5
    • Sqft: 2800
    • Baths: 4.0
    • Lot: 11761
  3. 21634 Fairwind Ln, Diamond Bar, CA Home For Sale
    21634 Fairwind Ln, Diamond Bar, CA 91765

     For Sale: $989,900

    • Beds: 3
    • Sqft: 2378
    • Baths: 3.0
    • Lot: 21910