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Will Final Conditions make the deal fall apart? My home loan is in Underwriting. They need docs I can’t give!

Hi. I am in the process of buying a home. The seller is calling me and my mortgage broker 2-3 times a day asking for a closing date. My broker just told me that the only final condition is the payment history on my student loans. I just got out of school and consolidated my loans and put them in deferrment. They are including the payment in my monthly debt even though my 1st payment on the student loans isn’t until Dec. 06. Therefore, there is no payment history. My broker said Underwriting was using that as my payment history as I don’t have any other credit card debt. My car was paid off 1 1/2 yrs ago. Will this make my loan fall apart? Is there anything I can do to speed up the loan so the seller will back off? The house is a REALLY good deal! Help. Experienced answerers only. Thanks!

Hi there. All is not lost. Here are three quick options to get this out of stalemate and move it forward.

1. Write a letter explaining the situation in detail. Keep it all fact based: Over the years… I have accumulated Student Loans in the amount of xxx. Based on recent changes to the student loan program, I have chosen to consolidate them to lock in my interest rate. My first payment on this loan is Dec 6, 2006 and therefore I have no specific payment history on this account.

2. Write another letter with the subject Payment history of (your name and SSN). come up with stuff. Have you paid electric bills, cable bills, cell phone bills, anything? Put it in there. Your car was paid off 2 1/2 years ago… did you have a loan on it? if so, include it all. Just because you haven’t made a credit payment in 2 1/2 years doesn’t mean you’re lost.

3. How do you feel about your broker? If you love them then go back to them and literally tell them YOU NEED TO MAKE THIS HAPPEN FOR ME. Give them your two letters so they have something to work with. Pull on their heart strings if you have a great rapport. Appeal that you’re a first time home owner and it’s been your dream all your life. DON’T get timid about this… you MUST put it on them to deliver for you or make them feel horrible about it. Most Loan brokers use a small set of loan officers they know pretty well. They value these relationships and use them well and they try not to push them. BUT, they have the ability to do so if they are any good and can put an immense amount of pressure on the bank, but in a nice way, that you can’t.

4. If you are not liking the loan broker, then lean on them. Tell them that they must get this resolved immediately. If they are not responsive, ask to talk to the person in charge of the broker. They won’t like it but don’t get mean with it, but be persistent. Be nice to the head person but persistent that you really, really, really need their help. The point is to get these folks going to bat for them.
If that doesn’t work then you may have to have someone with greater influence (like your Dad or something) call them to “understand the hold up” so they can lean on them and tell them things like “If you can’t get this done for my daughter, I’ll make sure eveyrone I know understands that you and xxxx brokerage (the company) have failed. You never want to resort to this unless you have no choice but if you can’t get them to move and you haven’t been able to get anything done… try it.

Don’t despair. Remember something really important. The Broker or the Bank get NOTHING if they don’t write you a loan. It’s what they do. You can convince them you’re a good risk… you can. Look at you! You just finished school, you have a job, you have no real debt beyond the loans… you are EXACTLY what they are looking for. You need to do a little more work to allow the underwriter to have something to put in their file to prove they made the right decision. The two letters will do that.

Good Luck!

I Hope this was helpful.

Take Care,

TBG

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