$5,000 Pressure!!!

[TK3]

FIRST POST! Great forum btw. I just turned 20 years old and have a rare situation involving CLEPPING.

After two years of studying real estate, building my credit, gettting a good job, and saving money. I have finally found a perfect house, and a prefect loan. House scheduled to close on the 29th of Aug. Everything was going very smoothly until I got a call from my lender saying that he misunderstood my credentials and that I no longer qualify for my loan because of my short fulltime work history. I now have a great job but have only been working full time for 5 months (while going to school). He said that I either need to have a full year of work or need proof of a degree. I am only two classes away from having my AA degree (I know it isn't much but it is a good stepping stone) so my only option is to CLEP them. I was already planning on doing this but I didn't want to be rushed.

I NEED ADVICE!!! PLEASE!! I am signed up to take US History I on the 19th and Western Civ II on the 26th. I feel confident in the US History but I do not know to much about Western Civ and am unsure about this one. I was thinking about registering for the Social Science and History as a back up in case I do not pass one. After reading the review I think the social science is more down my alley.

In a nutshell if I do not get 6 credits soon I will lose 5,000 dollars and a low interest rate... any advice on the tests?

P.S.
I KNOW I CAN DO THIS!!! ANY HELP WILL BE GREATLY APPRECIATED!!!

[saiguanas]

So you put down the earnest money without any contingencies about getting a loan and now that you don't qualify, you lose the money. Jeez. That really sucks.

I'm going to address your question but may I preach for a minute?

I think that it is fantastic that, at twenty years old, you are buying a house. You must be a tremendously motivated person. I hope, however, that by "building my credit" you didn't mean "getting lots of credit and having lots of debt." Been there, done that! Now, at 38, I wish I'd never accepted that Mervyn's card with the $200 dollar limit. That was the little stepping stone I used to amass a mountain of debt that I am just now getting out of. It all sounds great. Twenty dollars a month here and Thirty dollars a month there and the balance still gets higher and higher. :eek:

If you haven't ever heard of him, listen to Dave Ramsey. His advice is so simple that it's scary. Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.

Now that I'm off of my soap box, maybe I can get my big mouth shut and on to your real questions.

I haven't taken Western Civ II but I did just take US Hist I and II. I used the flashcards at clep Flashcards. This helped a lot. I thought I was pretty strong at it too but there were a lot of details that I wasn't really familiar with. You shouldn't have a problem.

Are you sure that even if you pass that you will be awarded an AA in time to get the loan and meet the closing? It takes about 2-3 weeks for me to even get my results. (I'm on base using the old scantron mail in tests)

Either way good luck and if it doesn't work out with the loan and you do lose the $5k, as Dave Ramsey would say, consider it "stupid tax." (Not saying you're stupid. I just think that's a funny way of putting it.)hilarious

[goldpaws]

I think the simple answer here would be to switch lenders. Find a lender who doesn't flip like that because once they issue a "you're approved" it's usually good for a certain period of time (30-90 days, read the fine print) otherwise "points" will be added (basically upping it). I'm sure a pending sale should be ok, especially if the sellers really like you. I don't think you can stall 7 months though, sorry.

i don't think you have too much to worry about with west civ or history. if you can't get through those it would be quite hard to get through some of the other classes or CLEPs. As long as you intently pay attention to the history channel -especially about Greeks and Romans - you should be able to breeze by. good luck.

I never thought a degree would really considerably help one's credit rating, but if that's what they said, you should get it in writing before going through all of this trouble. been there, done that. Get it in writing or switch lenders. With your credentials you are either overbuying or chose the wrong lender. Is this a "nationally" recognizable lender (not one of those small town lenders)? Maybe you need some advice that doesn't come from testers. I think you need advice from a fellow real estate agent. is your current (or if you are the agent) agent doing his/her job? i would consult second opinions about this one because you got bad advice or got lead on by someone..or both...

i agree it's very much a stupid tax but sometimes you have to cut your losses and run. run far away. In fact maybe you should report them for bad loan practices. Did they notify you fast enough? Insist on seeing the paperwork, why you were rejected, etc. Don't let them "just tell you it's this way"

I'll tell you what, when our real estate agents don't do their job, we cut their percentages. Oh yeah you bet those percentages are negociable, don't let them tell you otherwise. 6% to 9% is too much. Try 4% to 5%. I promise you, it's not all "solid"

You know the more you put down the more likely the lender will come around and give you a loan.
Seriously, I would give a loan to a person who puts down at least 20%. Would you give a loan to someone with 0% down? I wouldn't. It's amazing how some places are so desperate that they will go that far for business (thereby making money b/c of the interest charged rather than weighing real risks). Increase the percent down and see if they are more willing to work with you. Make your loan officer work for her/his share!

[DetroitSki]

Honestly,

I think this a pretty serious situation u find yourself in. You should be discussing this with your parents, an attorney or some other trustworthy people. Listening to some avatar on a website is kinda silly.

That being said, Social Science & History is an easy exam.

[cookderosa]

Your plan won't work.

Here is why- even IF you pass both exams, your not going to "have a degree" for SEVERAL MONTHS. (at a minimum!) My last day of class at TESC was July 21, 2008 and my degree will not technically be issued until December.
No, you can't get a letter. There will be 6+ weeks lag in between you taking your CLEP and it posting to your evaluation. And then, you still can't get a letter.
After your eval is posted, you need to file for graduation. There isn't an express lane, this is a stinkin' slow process.

I had this problem with grad school applications. I was "done" but not "graduated" and at the end of the day, I could not register for this semester where I wanted.

I realize your in a bind, I really do....but this is not the only lender- not the only loan, and not the only house. I know it FEELS like it, but you just have to trust those of us who have been around the cul de sac a few times. You may need to walk. Call your lawyer then call your lender. If it costs you a few hundred bucks in earnest money, consider it a cheap education.

[lmech]

Honestly,

I think this a pretty serious situation u find yourself in. You should be discussing this with your parents, an attorney or some other trustworthy people. Listening to some avatar on a website is kinda silly.

That being said, Social Science & History is an easy exam.

I have to agree w/ DetroitSki on this one. You need "face to face" advice from a professional you trust to be knowledgeable in this area. I think everyone is giving great advice on this thread, but for me, I would be dropping the dime to my lawyer.

Sorry, I am taking World Civ. 1 & 2 after my current subject(American Govenment) also I have not taken U.S. History Clep. Sorry I can't help on the exams. Good luck

[sandraeli]

In my years of lending, I have never heard of a degree being a requirement or a supporting qualification for a loan. It sounds shady to me and possibly illegal.

I would hope that your real estate agent included a "contingent upon financing" clause in your contract; it's standard practice in my area.

Read your contract to see about this clause first (and talk with your agent to see whether the closing date can be delayed), and then be prepared to move on to the other lenders you shopped for rates early on. Underwriting for another loan should be much quicker now that your records are in order and the appraisal and supporting documentation on the home have been completed.

Good luck!

[alleycat]

I have heard of a degree as part of financing a home loan. Actually I went to this HUD seminar in April and the person that spoke about home loans and qualifying for them said that if have just graduated and have a full time job now just give me your transcripts and that will do. I was a little shocked at this but it does show were a person has spent the last year or two of their lives.

I don't think there is any way around it. You don't have time to finish it to be able to close. Look for another lender and just get your degree done when you are really ready. In this housing market were foreclosures are up 55 percent this month alone you will be able to find another house if you can't get real financing for this one.

[TK3]

Thanks for all the quick replies!

I may have been a little miss leading with my original post. I did not put $5,000 dollars in earnest money down. It is a first time home buyer loan with a 5,000 dollar downpayment/closingcosts/prepaid assistance loan that drops after living in the house 5 years.

My loan is contingent on financing aswell. I know that I can't get a degree in two weeks . They just need a letter saying that i'm "done".

I really need advise on passing two cleps quick! I feel really good about US History I, I'm just worried about Wes Civ II.

Thanks again!

[cookderosa]

Thanks for all the quick replies!

I may have been a little miss leading with my original post. I did not put $5,000 dollars in earnest money down. It is a first time home buyer loan with a 5,000 dollar downpayment/closingcosts/prepaid assistance loan that drops after living in the house 5 years.

My loan is contingent on financing aswell. I know that I can't get a degree in two weeks . They just need a letter saying that i'm "done".

I really need advise on passing two cleps quick! I feel really good about US History I, I'm just worried about Wes Civ II.

Thanks again!

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See my previous comments about obtaining said letter.