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Old 09-10-2008, 11:38 PM
 
Location: somewhere south of Canada
2,144 posts, read 2,585,866 times
Reputation: 2515

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I was supposed to close on my new house today (pre-owned house, but new to me). When I signed the contract to buy it a month ago, I provided my loan officer with everything under the sun I could think of that she would need, bank statements, earnings statements, lease agreement for my current house (will be rented out), documentation that my job is transferring me, proof of insurance, etc. I didn't really hear much from her for a couple weeks. Then the loan processor determined that she needed more documentation, so I dug up old W-2s, updated bank statements, investment statements, copy of SS card. Now just this week the underwriter has asked for additional proof of my job transfer, also proof of the source of funds in my checking account because the balance jumped by a large amount in a month (401K loan), then I had to cough up a copy of the agreement between myself and my property manager (apparently the lease with the tenants wasn't enough).

I just want to know why all these things weren't requested from me weeks ago. Why do they always wait until the day before closing, or in this case the day of closing to ask for all this stuff? You'd think the loan officers/processors/underwriters would communicate these things early enough. So now I sit here on the "day of closing" without closing and I imagine it will be Friday at the earliest before I get the documents to sign. Since this is being done via FedEx, they won't get the docs back until Monday.

How does this affect things, meaning will I still be responsible for the house if it gets blown away by a hurricane on Saturday, even if the loan hasn't closed? Will the house still be considered mine as of 9/10 for purposes of paying taxes, etc? How does this affect the amount of money I'll have to pay at closing? Since I had my rate locked until 9/11 at 6.25%, could I call them at this late date and get it lowered?

I swear, I will not buy another house until I can write a check for it!
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Old 09-11-2008, 07:16 AM
 
Location: Plano, Texas
1,672 posts, read 4,481,367 times
Reputation: 642
I have stated what i am about to state several times in this forum board. If you work with a professional mortgage advisor the problems you are having do not come up as a professional will know what to expect the underwriter to ask for and the professional will ask for this documentation up front. It seems that most people when searching for a mortgage, want to call around to find the loan officer that will perform the duties of securing your financing for the cheapest money. Well, you get what you pay for. Would people do that when needing a medical procedure performed, or if you are being sued do people call around to find out what attorney will do the duties for less? Of course not, so why do consumers do this when securing financing on the biggest investment they will make. Now, in fairness to the loan officer you are using, underwriting is tougher today and lenders are definitely asking for much more documentation then they used to.

If the house you are buying gets blown away in the hurricane, you will not be responsible. Until you sign the documents at closing and your loan funds which usually happens the same day, it is not your home. Your tax responsibilty will start the day you take possession and the current home owner is responsible for taxes until that day. You could attempt to get your rate lowered some as rates have improved since the gov't bailout of Fannie and Freddie. Some lenders can do this in a few hours some might take a day, so if you request that keep in mind your closing could be delayed.

Please do not let this bad experience keep you from buying in the future. Find a professional mortgage advisor next time and you will find the experience to be much better. The professional might be a little more expensive but well worth it when you consider that you are making a huge investment.
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Old 05-12-2009, 12:16 PM
 
1 posts, read 39,033 times
Reputation: 11
Default frustrated

we are going through the underwriting process, and because i have no credit score they are asking for print outs of payment histories of bills in my name, they are asking for three but my name has only been on 2 bills for a year, will only having 2 instead of 3 will this afftect the loan from going through and with no credit at all and hardly any payment history what will FHA ask for when it goes through them and what do you think that the chances over all are of actually getting our house, we are getting frustrated and loosing all hope of getting a house big enough for our family, are these typical things coming up it seems like one thing after another since day 1 will all of this extra documentation push back our closing date
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Old 05-12-2009, 03:20 PM
 
87 posts, read 258,361 times
Reputation: 35
If you dont have much credit history and much documentation to support what you say, the bank has no reason to trust what you say and can decline your loan if they dont feel comfortable.
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Old 05-12-2009, 08:42 PM
 
Location: Las Vegas, Centennial Hills
2,013 posts, read 4,620,735 times
Reputation: 836
Quote:
Originally Posted by brandi9284 View Post
we are going through the underwriting process, and because i have no credit score they are asking for print outs of payment histories of bills in my name, they are asking for three but my name has only been on 2 bills for a year, will only having 2 instead of 3 will this afftect the loan from going through and with no credit at all and hardly any payment history what will FHA ask for when it goes through them and what do you think that the chances over all are of actually getting our house, we are getting frustrated and loosing all hope of getting a house big enough for our family, are these typical things coming up it seems like one thing after another since day 1 will all of this extra documentation push back our closing date
My question is how were you preapproved? No FICO borrowers are absolutely required to have 3 alternate tradelines (4 if you cannot provide an institutional verification of rent). 2 will not fly and if you cannot provide the 3 (or 4 if applicable) your loan will not close. This should not have made it past the loan officer, let alone gotten to underwriting. It might sound harsh, but it is reality.
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Old 05-12-2009, 08:58 PM
 
Location: Plano, Texas
1,672 posts, read 4,481,367 times
Reputation: 642
A couple years ago, underwriters approved everything with very little documentation. Look where that brought us. Now, in my opinon, they have moved to far in the other direction with what is required. It is very frustrated, especially to people like myself who are in the mortgage loan business. All you can do is provide what is asked as quick as you can.
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Old 05-14-2009, 05:26 PM
 
Location: New York
1,117 posts, read 2,189,223 times
Reputation: 741
Welcome to the world of mortgages - actually the situation you describe happens often (almost on every loan). The three things that determine half easy to get a loan put through is your credit score, your LTV, and DTI ratios. It also helps if any funds you have in savings are seasoned (in the account for more than six months).

If your score is in the high 700's, a low LTV. and a good debt ratio. Files close quickly. If you score is in the 600's, a higher LTV, and a tight debt ratio. Your loan will be taken through the "Ringer"....

Beside yourself, there are five party's involved in a mortgage. The broker, lender, appraiser, title company and the underwriter.

A broker/loan officer's job is the structure your loan and collect all your paperwork. Normally it is the processor job to deal directly with the Underwriter loan conditions.

Once you have a completed 1003 loan application, with a complete appraisal and title report. Your loan gets submitted for pre-approval to the lender.

This comes back to the brokers processor. A list of conditions are listed in order for your loan to close. This is when you sent in intially all the extra paperwork your loan officer didn't originally tell you about when you started the loan.

Then the lender's processing department reviews your file. After everything is complete it goes back to the underwriter for final review and any further closing conditions....

My $0000.02 cents
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Old 05-15-2009, 04:09 PM
 
Location: Kansas City, MO
5,740 posts, read 6,308,006 times
Reputation: 2707
Quote:
Originally Posted by Daddys///M3 View Post
My question is how were you preapproved? No FICO borrowers are absolutely required to have 3 alternate tradelines (4 if you cannot provide an institutional verification of rent). 2 will not fly and if you cannot provide the 3 (or 4 if applicable) your loan will not close. This should not have made it past the loan officer, let alone gotten to underwriting. It might sound harsh, but it is reality.

Because pre-approvals dont mean jack. I know loan officers that will give anyone and I mean anyone a preapproval letter. They mean as much as a piece of toilet paper.
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Old 08-23-2012, 04:07 PM
 
1 posts, read 26,573 times
Reputation: 10
My daughter is off to college, my son is getting marry and to cut our expenses and less maintenance work, we decided to downsizing and buy a smaller pre own home. Let my son and his new family stay in our current home, use it as rental/investment property. Underwriter asked for explaination, copy of lease/rental agreement and copy of deposit check from the tennat (my son). Is this all they need in order to approve our loan? or they're going to investigate more...
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Old 08-24-2012, 07:28 AM
 
Location: Ashburn, VA
857 posts, read 1,432,740 times
Reputation: 485
They may need your tax returns showing the rental income. That's what we neede to provide (but we didn't need to show a lease)...
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