Wrong advice?

[Gweiss]

Jurisdiction

Nevada

My wife were prequalified for a home and inches away from closing. We were only waiting on HOA guidelines. We received them 5 days before closing and decided to pull out of contract due to HOA regulations. We moved our cars and essential belongings from hawaii to the mainland with the full intention of moving right in. Moving on....
Upon renewing our loan and info we continued on house hunting. When actually found another home We made an offer only to find out my wife's credit score changed, disqualifying us for a loan.
So diving deeper into why and how to remedy this our LO kept us in contact with their credit team. Advising us to pay off or minimalize my wifes 2 credit cards(high balances caused the credit drop) and that would be 99.9% chance that we will be in the clear.
WRONG.. this got her close but not enough to qualify?
And now she finds out they pulled her credit 4 times ovee the past 2 months. We were now instructed to wait 3-6 months and try again?
Is this a take it on the chin and walk away type of situation? Or is there any accountability we should pursue?
I'm trying best not to convey my distress and anger as we have physically relocated from hawaii to the mainland and are living with close friends with no hope in sight??
Thanks any insight woild greatly be appreciated

 

[hrforme]

why did your wife run up higher credit card balances between the time of the first offer/almost close and the 2nd offer? If she didn't, it is even possible that whoever was backing the mortgage changed their criteria in the meantime. Even if you paid them off, there was no guarantee your credit score would increase that quickly. And both you and the mortgage broker were guessing how much it would help. The mortgage company has the right to change their approval based on her behavior/spending. There is no loan or any "renewal" until you sign the papers at closing. You probably signed a document when you applied for "pre-approval" that stated they would be pulling your credit as needed (and yes it will usually be more than once). There is "pre-approval" and filling out loan documents, but as you can see it is pretty worthless because what matters is the day of closing when you actually sign the loan documents. Often you can lock-in a specific interest rate for a specific period of time, but that is not a loan guarantee. Every RE agent and mortgage broker we have had told us to not make any large purchases until after the loan is closed.

Let me give an example from our family where we have exceptionally high credit scores. I bought $16k worth of work equipment on my CC about 6 weeks prior to trying to secure a loan for a new home loan in a different state. The vendor would only take a CC and I was one at the office that had the credit limit to do so. I immediately paid it off within 7 days before I even got a CC statement. The mortgage loan broker questioned that spending and I had to proved what it was, what it was for and get a letter from my employer regarding the situation.

I suggest if you don't want to live with friends that you rent an apartment or home and try to wait out the credit score issue. Or try to get a loan that you can afford on just your income/credit, without using your wife's income or credit. No mortgage broker is required to give you a loan.

 

[army judge]

De minimis non curat lex ("The law does not concern itself with trifles")

 

[adjusterjack]

Non illegitimus carborundum. (Don't let the bastards wear you down.)

 

[mightymoose]

No advice is the wrong advice. Ultimately you make your own decisions and base it on whatever input you choose to rely on.
The accountability here rests with the person who ran up the balances on the credit cards. Seeking a loan or not, it is common knowledge that doing so will likely alter a credit score. Time is needed to bring the score back down, even once the balance is reduced.