We filled out all the papers and waited and watched as he put all the figures in and all that.
And then signed a bunch of stuff.
And then he says, well, we’ll know in a few days but it doesn’t look good.
Whoa… what?
He says, credit is good, everything about income and all looks good but you don’t have enough higher limit open credit history, so the system is saying it’s not a good thing and will likely be denied. It does go to an actual underwriter, but he doesn’t think it will happen.
Kind of a 360 from the day before. Very dissapointing at this moment in time. Spend years working to recover from things out of your control, be good, pay off things, get things in order and now they say, oh, you haven’t been getting yourself back into debt enough, with more credit cards and such, so we don’t think a HOME is a good idea. Why don’t you go get a new car or something and come back in 12 months.
This world is whacky. And dissapointing.
Well, Jessy says on the way home… “Mom, God doesn’t want us in debt, He doesn’t want us with monthly payments, something will happen, this is just the first battle and until it’s sold, we still have a chance.”
Have I ever said how much I luvs my kids? That’s why.
Well, back to the drawing board. And well, maybe the underwriter will think otherwise than the computer program. Guess we’ll find out in a few days. In the meanwhile, just disappointing. Very disappointing.
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Hi Moby Mom,
I’ve been following your post about your dream home and hoping and praying it goes through for you. I totally agree, this banking/debt stuff is shear nonsense. Don’t give up. If this bank does not work, go to another one. Check out information online and get opinions from others. When we were young and wanted to buy some raw land the mainstream banks said we needed 50% down (it’s in Canada so the land back then was $80,000.) We also wanted to build our own house but the bank said we had to use contractors and pay double or more. We could not put our own “sweat equity” into it. At the time we were banking with this mainstream bank too. So, we closed our accounts and went with the little credit unions who would lend us the money. Don’t give up. This bank does not have the last word. As for the appraisal, (as you mentioned earlier) if the bank does not think the property is worth what you want to pay for it, it simply means the owner is asking too much and will have to negotiate a lower price – it kind of protects you too. Keep pressing on. You are a very special person. Hugs and God Bless.
Heather
Oh I’m so sorry to hear this. Banks and the whole system can be so stupid. They are why this country is so badly in debt. People who want to be debt free and not rely on credit to live month to month are punished. Jessy’s a smart lady, and I think she’s right. Things like this do happen for a reason. It’s not the right time or place even though your gut says it is. Keep hanging in there. If it’s meant to be it’ll work out. Praying for y’all!
Grrr…the system can be so messed up. I second the advice to shop around for the loan. Also, did they ask for a letter from you about yourself and your history? They do when there is one little squiggle on a credit history, so I would think something in your own words about you would help. Again, this is where the smaller banks and credit unions may be friendlier.
I’m praying about it and thinking good thoughts!!
I second the suggestion to check with credit unions. I know a young woman who wanted to buy a foreclosed home in questionable condition and her dad was giving her 10% to put down. Knowing other people’s experiences with regular banks, she went to a credit union (she was not a member at the time) and said she was looking for a mortgage on a house that probably wouldn’t pass inspection and her dad was giving her the down payment. She got the mortgage from the credit union. When my son wanted to buy a house and was dealing with a regular big name bank, he was told he could not get a down payment from his parents because they considered it another obligation he owed (even if we signed a paper that it was a gift) and “maybe” it would work out if he took the money from us and had it in a saving account for a year, they “might” consider it his money. Big banks = Bull-Fooey!!! Check around.
You are in my thoughts. $18,900 FOR HEAVEN’S SAKE!! The same bank would probably give you $18,900 for a new car that would depreciate with every minute and every mile it went down the road. It makes no sense….
I’ve thought for a long while that the whole credit thing is a real sham. Three companies come up with some form of rating formula to give you a magic number – and they can’t even agree on the formula. They made it all up and created a whole industry, from the credit bureaus to the credit watch dogs. And if there is inaccurate information on your file, it’s practically impossible to get it taken off. Just like having your name on the “no fly” list. But we buy into it.
And they tell us having a good number is essential. It’s used for everything now. It determines the rate you get for auto insurance. What does a credit score have to do with how good of a driver you are? It also is used when you apply for a job.
The catch 22 is that in order to have a good credit score, you have to put yourself in debt. If you have no debt, you have no credit, so you have no credit score. And just having someone “run” your credit to see what your credit score is will make your credit score go down. An example of the worse case of this happened to a co-worker of mine. She did her due diligence when looking for a used car. She test drove a dozen or so cars at various car dealerships. She was pre-approved for a loan at her credit union before she started. When she found the car she wanted, the credit union re-ran her credit, then denied her the loan because every car dealership ran her credit while she was test driving their cars. The rules have changed a little to prohibit this from happening without your knowledge… somewhat.
And the way the credit scores are used vary from creditor to creditor. I’m reminded of when I was dating my ex-husband. He had recently undergone a divorce (another thing that will tank your credit, even though you pay your bills on time). His old Ford truck was in dire need of new tires. Big-O Tires denied him $400 worth of credit for a set of new tires, so he stopped by a Ford dealership to see if he could get them there and drove off the lot with a brand new truck. Doesn’t make a lot of sense.
Stay the course. Don’t put yourself into debt to appease the “Credit Gods”.