Questions about pre-approval conditions

Tips and Deals Forums Home Mortgage Questions about pre-approval conditions

This topic contains 0 replies, has 1 voice, and was last updated by  Anonymous 6 years, 11 months ago.

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    Anonymous

    Good Evening!

    Today I received my pre-approval letter in the mail from Wells Fargo. Getting pre-approved was unexpected with some credit issues and a mid score of 602, but nonetheless, I was pre-approved. However, there was a laundry list of conditions that need to be met (expected). I have a couple questions regarding some of the conditions.

    Condition 1:

    Lender is to receive a fully executed gift letter from an acceptable donor in the amount of $4200. (I wasn’t planning to use a gift for funding. Is this still mandatory?)

    Condition 2:

    Lender is to receive most recent paystub of borrower reflecting monthly income of at least $2958. (Can overtime pay be included as qualifying/acceptable income? I’m very close to that in just base salary and overtime is steady. I’m averaging at least 10 hours a week.)

    Condition 3:

    Lender is to receive W2s of borrower from years 2010 and 2011 reflecting monthly income of at least $2958. (I did not make that amount at my last job. Will this be a problem even though I’m making more money now than at my last job? There was no gap in employment for the last six years.)

    Condition 4:

    This one I’m most confused about, since I was pre-approved for $73,565. Lender is to receive fully executed purchase agreement, including all addendums, with a minimum sales price of $75,000. All terms must be acceptable to the lender. (Why are they asking for a minimum purchase price that’s over my pre-approval amount?)

    Condition 5:

    Lender is to receive an acceptable appraisal report indicating a market value of $75,000. All terms must be acceptable to the lender. (Is this saying that no matter the cost of the house, it must only appraise at $75,000 or is this just an extension of the previous condition?)

    Sorry for the long-winded post. I’m a first-time home buyer and I want to make sure I’m doing everything right. My realtor is looking into this for me and I left a voicemail for the loan originator’s supervisor since the LO is on vacation until the 16th. I knew I wouldn’t receive a call back right away, let alone at all on a Friday afternoon, so I figured I’d come here for advice as have on numerous other occasions.

    Any help or insight you can provide is greatly appreciated, as always!

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