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Is this normal? They keep asking for more....every transaction they have to source?
We applied for a line of credit recently. All went smoothly but then they said they needed a copy of a utility bill in my wife's name! To prove we live in the house together, I suppose, despite having had a joint checking account with this very large bank for over 20 years! Long story short I sent in copies of our vehicle registrations, which luckily all have both our names on them, and told them if this wasn't enough to prove we live in the same house, to just forget about the line of credit. They accepted it.
We applied for a line of credit recently. All went smoothly but then they said they needed a copy of a utility bill in my wife's name! To prove we live in the house together, I suppose, despite having had a joint checking account with this very large bank for over 20 years! Long story short I sent in copies of our vehicle registrations, which luckily all have both our names on them, and told them if this wasn't enough to prove we live in the same house, to just forget about the line of credit. They accepted it.
That's the problem, they ask for things they don't need or are impossible, If the electric bill is in the husband's name there is no possible way to present one that is in the wife's name.
Those are all true, but I think on the other hand, just as you expect to keep your word, you have every right to expect others to as well. Therefore, if someone says all is good, then comes back with multiple requests it's not crazy to be a bit miffed.
Same goes through for being professional. If many of these things were handled more professionally instead of in slipshod fashion it wouldn't be as bad. Unless these companies just started doing loans yesterday, they probably should have a good idea of what they need up front from borrowers and have little need to ask for last minute documentation unless something truly changed.
I can totally agree with this; however, to a large degree, it's still on me since I'm the one who decided which lender/broker to use. If they prove to be incompetent, I've got to take some responsibility for selecting them and/or not firing them.
Quote:
Originally Posted by Sherifftruman
I also think there is a good amount of general frustration on people's part as well as they've handled their finances, the lenders didn't handle theirs which caused much of this, they got bailed out and many of the deadbeats who (I don't care what they say if they got a loan for twice the house they should have they were not "preyed upon") got to walk away without paying and now the decent borrowers are paying the price.
That's totally true. And maybe my knowledge of the mortgage process makes me a little less sympathetic to those that get so frustrated with it.
One reason for asking for more paper work, is that most banks even large ones package and sell the loans to the one that will actually be holding the loan. These companies that buy the loans, have different requirements and need for proof to be willing to buy the loan. You are approved for the loan, but after than they shop out the loans for the best bid to make their profit for originating the loan. They have to get the papers, that the one that agrees to buy the loan require. Banks actually should be considered mortgage brokers, as that is exactly what they are doing.
You may not even know the loan has been sold, as you make your payment to the originator of the loan, who collects it for a small fee for the loan holder.
the banks request the documentation in stages . usually they take the personal credit info first to qualify you .
then as the deal progresses they take more and more info pertaining to the deal and the property .
when my daughter bought her co-op the bank was okay with everything until they went for the co-op board approval . then once approved and ready to close the bank requested a letter that the bank would not be subject to the flip tax if they foreclosed .
the co-op refused and unless they put more money down to compensate for the flip tax the deal was off the table .
they told the bank forget it .
they got another bank who told them the same thing up front since now they knew to ask , so they had no choice but to plunk down thousands more .
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