We're applying for a VA loan currently, but our app was suspended while in underwriting. We were Pre-Approved and were told there should be no issues because we took all necessary steps to pay down some older credit cards and paid off a charged off card which significantly boosted my husbands credit score. We more than meet their requirements (credit score, debt to income, etc.) but the underwriter was concerned about old accounts that were paid late approx 5-7years ago.
Our loan officer is currently fighting for us and went over the underwriters head to her boss to have them reconsider on the grounds that the accounts that were paid late in the past are accounts from when we were 19-21 years old and newly married on top of welcoming a child into the world and having to PCS (military move) to Hawaii. All of these factors contributed to falling behind on some smaller bills. Anyways, I'll spare the long drawn out version of this. They want additional documents to verify we're better off financially now as well as making rent and car payments on time all the time.
My question is- has anyone had a mortgage loan suspended had a loan suspended and what was the outcome? How worried should I be? Is a suspended loan basically a prolonged denial?
Read more: MORTGAGE APP SUSPENDED. Need advice or others experience please?
