We have plenty of funds for closing, 20% down on a 230k house plus will have half of our downpayment cost left in savings after everything is paid. Just had a couple of crazy spend months and I’m nervous that could affect our approval. We are already under contract and the underwriter started review last week and hasn’t asked for anything so far.
All of the crazy spending was in my accounts, and the accounts with the down payment funds are in my husbands name. I have always had plenty of money in my account, pay off the credit card every month, and they are using my credit score of 810 for the loan.
What do underwriters look for when giving a home loan?
byu/YOLO19972022 inpersonalfinance
Posted by YOLO19972022
9 Comments
Beware of letting your mind dwell on things you cannot change.
There are $230K houses???
I need to move out of the N. East
Just be prepared to explain the charges. Things happen.
Since your loan-to-value is good and your credit score is excellent, I’d think the main concern left is debt-to-income ratio.
Credit score, job history, debt to income, down payment funds. Idk what “crazy spend” actually means, but if you didn’t increase your debt, it shouldn’t have an effect
For the bank statements, you may need to explain some charges, but they are mainly looking for some sort of debt you didn’t disclose. For example, are you making a consistent payment every month that they can’t tell what it is…..like maybe they see a $500 payment every month to “Bob Smith.” You know Bob does your lawn care and snow removal, and you just have a month to month deal, but they don’t know if Bob loaned you money and you are paying him back or what the deal is. They’ll ask, you answer, that’s it. That’s generally all that takes.
They don’t care if you spent $1000 shopping for stuff for the new place or even if you have an OF subscription. They are just looking for large unexplained deposits or payments and that you are mostly consistent and stable.
Is the big spending on your credit report i.e credit cards? If it was and shows paid no biggy, if it doesn’t show on your credit report they don’t know about it unless it’s on your application. Rule of thumb, if you put something on your application you’ll probs have to account for it, either a financial asset or a debt.
chill out, that’s way too much worrying.
Steady job. Low dti, good credit, paying bills on time, and a downpayment.
If you have those things you have nothing to worry about.
The worst thing you can do is do something dumb like making a large purchase while in underwriting.
It does happen. My realtor told me about a client that bought a brand new car a few weeks before buying the home. He did not get the house….