Pre-approval process

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jyeh74

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Hi, I have a buddy looking into the preapproval process at one of the homes in TIC.  She is currently approved thru her lender but the sales agent says she must be pre-approved thru their lenders (BofA).  Her issue is that she tried getting approved thru BofA once, and wasn't approved for enough $$ through BofA (their lender) so she knows she won't get approved for the amount needed. 
The sales agent says that she does not have to use BofA, but still needs to go thru the process, check credit, show paystubs, etc
Can she get a co-signer, both get qualified/pre approved thru BofA, then use her name only thru her lender (whom she already has approved)?
 
jyeh74 said:
Hi, I have a buddy looking into the preapproval process at one of the homes in TIC.  She is currently approved thru her lender but the sales agent says she must be pre-approved thru their lenders (BofA).  Her issue is that she tried getting approved thru BofA once, and wasn't approved for enough $$ through BofA (their lender) so she knows she won't get approved for the amount needed. 
The sales agent says that she does not have to use BofA, but still needs to go thru the process, check credit, show paystubs, etc
Can she get a co-signer, both get qualified/pre approved thru BofA, then use her name only thru her lender (whom she already has approved)?
Click to expand...

A co-signer would probably get her over the hump, make sure whoever cosigns doesn't have trashed credit.

I'm kind of confused though that BofA wouldn't approve her for the requested amount, their underwriting standards even now, are not exactly very high.
 
jyeh74 said:
Hi, I have a buddy looking into the preapproval process at one of the homes in TIC.  She is currently approved thru her lender but the sales agent says she must be pre-approved thru their lenders (BofA).  Her issue is that she tried getting approved thru BofA once, and wasn't approved for enough $$ through BofA (their lender) so she knows she won't get approved for the amount needed. 
The sales agent says that she does not have to use BofA, but still needs to go thru the process, check credit, show paystubs, etc
Can she get a co-signer, both get qualified/pre approved thru BofA, then use her name only thru her lender (whom she already has approved)?
Click to expand...

Can she?
Yes.

Should she?
Sounds like she is only very marginally qualified.
I would take that as a very telling sign if someone was not able to qualify through a major lender like BofA for that price point.

If it were my client and/or friend, I'd recommend for them to seriously consider the option of waiting or purchasing smaller.

-IrvineRealtor
 
She definitely qualifies and can make the payments.  Bofa has a rule where she cannot claim rental income if the property does not have 30% equity or if it has not been rented for 2 years.  That is what is keeping her back.
 
Which one is it, she hasn't rented it for 2 years, or she doesn't have enough equity in the property? I'm guessing the latter which would be a real concern for the underwriter.
 
jyeh74 said:
She definitely qualifies and can make the payments.  Bofa has a rule where she cannot claim rental income if the property does not have 30% equity or if it has not been rented for 2 years.  That is what is keeping her back.
Click to expand...

The other property is/was her primary residence, as I assume it was, the lender should have been able to underwrite it unless she was saddled with a bad processor. 

Paging SGIP...
 
I think it doesnt have 30% equity, but not sure if it has been 2 years either.  Not sure why BofA has this, but a couple other lenders approved her, even WITHOUT the 30% equity and 2 year rule.  She'll just have to get a co-signer, then use her own lender, which already has DUA.
 
Just a heads up that TIC requires a underwriter approval within 30 days of putting down a deposit and signing a contract for a home. I went through the same BS, got pre-approved through BOFA through TIC and then started the process with my lender only to realize that they want an underwriter approval 30 days after that which was 5 months before closing so got the underwriter approval through BOFA also. From my experience and some others, the BOFA guys through TIC seem to be very easy to pre-approve with . I would suggest having your friend try pre-approving with the BOFA person at TIC.

You then have to file paperwork to take the option to change your lender back to your own from BOFA 45 days before closing.

Edit: Just noticed that they already have underwriter approval with the other lender so she is set if she gets over the BOFA hurdle.
 
Her debt to ratio is slightly high according to BofA, but a direct lender is able to approve her.  Her concerns are that BofA won't approve her due to her DTI, but if someone co-signs with her, then she will be fine through BofA.  Ultimately, she just needs to get pre-qualified and can then use her own direct lender, which already has DUA approval. 

Question is, is there a way a seller can mandate that BOTH names need to be on the loan, since she co-signed thru the original pre-qual process (via BofA) with another person???  She has enough for the down, just BofA has certain rules that didn't qualify her.

 
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