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Gone are the days of abbreviated doc, no doc, easy doc and Friends of Angelo. It's quite simple now: EQUAL CREDIT OPPORTUNITY enforced to the fullest. If the guy making $9 an hour changes jobs, yes, he's going to have to write a letter, too. If the lady with the 620 score needs to explain why she was 30 days late on her VISA, the guy with the 820 score does too. In the mortgage lending world, no one is better than anyone else, and you best treat everyone the same. From lender to lender, the requirements may vary, but each lender best be applying their requirements equally.
Some personal observations.....the foreclosures and short sales in the mortgage crisis that occurred in the middle to lower class, far more were out of necessity, job loss and hard times. (I'm not denying they had their share of ATM borrowers). But of the upper class (with high scores) that went thru the short sales and foreclosures, far more of those were stratgeic and skillfully planned. The former let all other payments go while trying to make the mortgage payment, while the latter only let the mortgage go. Where I am going with this, the highest credit scores do not necessarily indicate guaranteed future payments on jumbo loans - once they did, but no longer. The only thing a high score does is make you eligible to apply for the higher balance. But you will be put thru the same paces as the buyer with the 620 score, buying their first home.
I'm the OP and while I did start a new job in Oct, my salary is just under $100k and I can earn another 70 in commissions uncapped. We did just sell a house in Nov and my wife quit working which cut our income by 50% but we should still be very solid borrows.
Maybe they're upset they gave me a 30 yr jumbo at 3.625 and are looking for a way to deny it! ha ha
This alone would be enough to set off alarms at every investor I know. In most places I have worked, everything would be done to do the loan without commission earnings. Why? You have zero track record with this company. Five months doesn not = track record. Do you know how many commission jobs have a variation on commission paid for the 1st year only?
I promise you, they are not worried about the rate. I don't know anything about your loan amount or other parameters, like ratios and ltv, but I do suggest you try to find a way to work with your lender with a touch of humility and not the sarcasm presented here. This is not an easy scenario for most lenders under today's guidelines.
Gone are the days of abbreviated doc, no doc, easy doc and Friends of Angelo. It's quite simple now: EQUAL CREDIT OPPORTUNITY enforced to the fullest. If the guy making $9 an hour changes jobs, yes, he's going to have to write a letter, too. If the lady with the 620 score needs to explain why she was 30 days late on her VISA, the guy with the 820 score does too. In the mortgage lending world, no one is better than anyone else, and you best treat everyone the same. From lender to lender, the requirements may vary, but each lender best be applying their requirements equally.
Some personal observations.....the foreclosures and short sales in the mortgage crisis that occurred in the middle to lower class, far more were out of necessity, job loss and hard times. (I'm not denying they had their share of ATM borrowers). But of the upper class (with high scores) that went thru the short sales and foreclosures, far more of those were stratgeic and skillfully planned. The former let all other payments go while trying to make the mortgage payment, while the latter only let the mortgage go. Where I am going with this, the highest credit scores do not necessarily indicate guaranteed future payments on jumbo loans - once they did, but no longer. The only thing a high score does is make you eligible to apply for the higher balance. But you will be put thru the same paces as the buyer with the 620 score, buying their first home.
This is absolutely true in every sense. Financial reform in practical terms. No more liar loans= a paper trail that can get you to Oz.
This alone would be enough to set off alarms at every investor I know. In most places I have worked, everything would be done to do the loan without commission earnings. Why? You have zero track record with this company. Five months doesn not = track record. Do you know how many commission jobs have a variation on commission paid for the 1st year only?
I promise you, they are not worried about the rate. I don't know anything about your loan amount or other parameters, like ratios and ltv, but I do suggest you try to find a way to work with your lender with a touch of humility and not the sarcasm presented here. This is not an easy scenario for most lenders under today's guidelines.
I've provided them with plenty of statements documenting my track record of high commission earnings. In addition, we have enough assets to pay cash for the house if we were so inclined. I don't think having humility in the process is going to help. I think when they have a solid borrow like me, they should expedite the process, get the deal done and move on to the next one, especially one where maybe the borrower is higher risk.
It's not that I'm not working with them, but I've let them know I'm getting frustrated with the process.
Too bad we are pretty much at their mercy. We must provide everything over and over again if we want that loan or house bad enough. There is always a choice to go to another lender but I'm thinking it'll probably the same experience.
I've provided them with plenty of statements documenting my track record of high commission earnings. In addition, we have enough assets to pay cash for the house if we were so inclined. I don't think having humility in the process is going to help. I think when they have a solid borrow like me, they should expedite the process, get the deal done and move on to the next one, especially one where maybe the borrower is higher risk.
It's not that I'm not working with them, but I've let them know I'm getting frustrated with the process.
You come across as you feel you are above the process, as if you shouldn't have to endure the same process as everyone else applying for a loan, and that's the only reason why I suggested some humility.
Every single day, we run across so-called slam dunk loans, that are only slam dunks in everyones mind except for the underwriter or the guidelines. My last such buyer that had every right to feel above it all (from this site, actually) had 53% down (could pay cash 2x over), credit scores in the 820's and had been turned by two other banks, and we didn't even need his income (a self employed doctor, btw). The problem wasn't income, credit or cash......it actually doesn't matter what the issue was, but it was a file that would continue to be denied until someone thought outside the box in its presentation. By the time I got his loan, he was willing to do whatever it took to get the home he really wanted and he was a pleasure to work with. The bigger the institution, the less the person you are dealing with can really call the shots or pinpoint results with precision. The bigger the institution, the more they are slinging it against the wall and hoping it sticks.
Where I'm not sure you realize there is a disconnect in your process if you need your commission income to be counted after only 6 months on the job. I'm not saying it won't happen, but your loan officer better be packaging this file right and pull out all the stops addressing income. I'm sure you are aware almost every sales job offers premium commissions the first 6 months to a year, just so the salesperson can get established on the new job. This is common in real estate sales, mortgage banking, car sales, flooring sales, advertising......if it's commission, in almost every field, the first year is padded and not an accurrate reflection of the salesperson's actual ability or earnings, which can be far higher, or far less. This is not a situation for the novice loan officer nor the diffident borrower.
Hopefully, your transaction will go through without a problem. That way you don't have to learn the rate lesson.
You come across as you feel you are above the process, as if you shouldn't have to endure the same process as everyone else applying for a loan, and that's the only reason why I suggested some humility.
Every single day, we run across so-called slam dunk loans, that are only slam dunks in everyones mind except for the underwriter or the guidelines. My last such buyer that had every right to feel above it all (from this site, actually) had 53% down (could pay cash 2x over), credit scores in the 820's and had been turned by two other banks, and we didn't even need his income (a self employed doctor, btw). The problem wasn't income, credit or cash......it actually doesn't matter what the issue was, but it was a file that would continue to be denied until someone thought outside the box in its presentation.
Can you give any hints as to what the issue was? If possible, I'd like to know what it was so that we can avoid it or learn from it.
Just did a re-finance with Wells Fargo----same story, worst loan experience in 37 years of marriage and mortgages.
Repeatedly asked for same documents. Scores above 800, Steady, good $$ employment, savings, etc.. One hour before closing tried to add $3,000 to closing costs, claiming unpaid taxes. (they had already asked for and received proof that taxes were paid 7 weeks before). The ultimate was being FINGERPRINTED by the notary. Horribly stressful from start to finish.
Why anyone would do business with this horrible company is beyond me. There are plenty of other home loan companies to choose from. Wells Fargo Mortgage was among the most dishonest and unethical companies involved in the sub-prime loan scandals and the 2008 housing bubble. Really---for all of you who mentioned how much money and assets you have, why wouldn't you just buy a decent house for cash?
Why anyone would do business with this horrible company is beyond me. There are plenty of other home loan companies to choose from. Wells Fargo Mortgage was among the most dishonest and unethical companies involved in the sub-prime loan scandals and the 2008 housing bubble. Really---for all of you who mentioned how much money and assets you have, why wouldn't you just buy a decent house for cash?
If you can lock in a sub-four percent interest rate for 30 years, wouldn't you rather invest the money in something else, rather than have it all tied up in a house?
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