Quote:
Originally Posted by bossku69
Actually no, Im going with FHA loan and they are not counting any of my 1099 income, only W2... and have myself on W2 employment since August of last year.
There are no red flags that come up, my debt to income ratio is low, credit is solid, more than enough funds to cover the costs to move in, etc., its just this tax transcript bullshit that is holding everything up and now I find out that they will only count what I made from August to Dec of last year as my "income" even though I am a full time employee.
I'm going with an FHA loan since I am buying it myself and dont have 10% to put down. Plus conventional requires a much smaller DTI ratio and any 1099 income is a huge pain in the ass to deal with, so if I keep it just W2 the FHA will be fine.
Honestly this is crap! They've had my info now for well over a month and there is no reason they can't just tell me yes or no. Its not like having the tax documents is going to change their mind
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You don't have 10% to put down??? Why are you buying again???? Are you paying PMI too ?
Quote:
Originally Posted by bossku69
the broker (and i heard this from others too) is that FHA loans are processed faster than conventional because the loan is backed by the govt not a investor/investment bank.
im just sick of the BS and what i hear from the broker. things change almost daily and its to the point where it might be better to even walk away because Ill be paying rent for an apt and leasing this house from the buyer... not worth that much money.
the whole system is retarded. a "preapproval" means almost nothing now other than "even if we approve you, this is the maximum amount we will consider." it would make more sense to get the loan FIRST then go find a house, then do all the details like inspections, etc. rather than this way of finding a home, putting down a contract, breaking a lease... then possibly having to reverse all that. complete nonsense  |
This is the way it works. You want to buy a house and you need a mortgage. You go to the bank and give them ALL of the documents they need. Not some, not the ones they need that you don't have and wont get back till 2 weeks from now, but everything they need. They sit down with you and they pull your credit report. They go over your expenses and look at your income and do a debt to income ratio. They then look at your credit score. From all of that they can give you a ball park of how much you can spend on buying a house.
Then you start looking for a house in that price range, or less. You make an offer. Once it is accepted you go back to said bank and give them a copy of the purchase agreement. The bank will order an appraisal . You will order a survey and home inspection. If everything checks out you move forward with the sale. The bank works with the title company and gets all the shit worked out. You show up with your deposit (20% recommended) check, you sign a million papers and then the house is yours. You THEN box up your shit and move into.
If you do it "right' you are much less likely to have problems.