Boy oh Boy, the last six weeks have been a roller coaster! But I finally received loan approval on Halloween Night.
On 10/19 I got a call from my LO at NVR informing me that my loan application was denied. I was stunned!! When she delivered the message, it was like she was pulling straws trying to help me understand why. IMHO when you drop a bomb like that, please have all of the information available.
Anyhow, to sum up a long story, my Debt to Income ratio was a little over the percentage that NVR would allow (but not close nor pass the maximum that the FHA 30 year fixed allows). NVR told me early on that due to my DH's student loans he would not be able to apply for the loan with me so I applied alone. With less than perfect past credit, I'm assuming they viewed the loan as risky. Now we all know that NVR turns right around and sells the loans to big banks, so I think, had they approved my loan, they'd have a hard time selling it on the secondary market.
So, the alternative was to pass my loan off to a Broker who would easily approve the loan because their requirements were not as "strict" as NVR's. I kept being told that "NVR is stretched" and "they are nitpicking everything".
I'm not ashamed to admit that I am a young adult who like many others in America, struggled to pay credit card bills, loans and monthly obligations and still remain afloat. In the past couple of years I've worked diligently to pay off credit cards, clean up my credit, boost my score and save money so that I could get to this point. It has been a long time coming. The denial was like a slap in the face.. like WOW, you work so hard and think you're there, but not quite.
Thankfully my SR is terrific and assured me that this happens to about 30% of the loans they make and 95% of them are approved. He told me not to view it as a bad thing, because it was not.
The Broker quickly approved the loan with all of the documentation I submitted to NVR with all of the terms I agreed to.
I feel it is important to share my true testimony because I honestly thought I would never see a score above 650 a year ago, let alone be on my way to owing my very own home. There may be someone reading, that like me, was discouraged and thought they'd never see the light at the end of the tunnel.
I'm happy to say today I am debt free (no credit card balances, no car payment, no student loans) and blessed to be able to provide for my family and build the home that suits me.
Lets get this ball rolling already! :)