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Hi, we are closing on a house on 7/13/16. We have no debt - except an Amex which we pay in full every month. The loan processor called on Friday and said the underwriter wanted this at a $0.00 before we closed so I needed to pay it off. This basically took up our living expenses until closing. My question is - if I have my employer advance me my next check (7/14/16) - would this be something that would come up on a VOE? I am worried about that causing trouble with closing if that would for some reason to come up on the VOE.
I see the more likely issue of submitting pay stubs up to closing and find out then and making issue of it. If you're required to do that - the mortgage company I'm going through wants pay stubs and bank statements updated until I close.
Sucks that you go put in such a bind, hope it all works out! Is there anything you could pawn/sell to help cover groceries and such til then? (and remember don't deposit any cash in your bank acct or you'll have to document where it came from, don't know if it'll cause issues or not but better to avoid if you can)
I'd suggest you just eat whatever is in the house for the next 2 weeks and have less to move. Just do not buy anything that is not absolutely necessary. Have a garage sale next weekend to get rid of any extra stuff you have and use that money for gas, etc.
Personally I would not take a chance with an advance pay check.
Hi, we are closing on a house on 7/13/16. We have no debt - except an Amex which we pay in full every month. The loan processor called on Friday and said the underwriter wanted this at a $0.00 before we closed so I needed to pay it off. This basically took up our living expenses until closing. My question is - if I have my employer advance me my next check (7/14/16) - would this be something that would come up on a VOE? I am worried about that causing trouble with closing if that would for some reason to come up on the VOE.
Any advice?
Any substantial deposit (over $500) will have to be sourced, ie., "show me that paystub." If it's random cash, it doesn't exist to the bank, and cannot be used as Reserves, etc. However it could be used to pay down a credit card.
You seem to be past the point of VOE. It is difficult to say how a lender would view an Advanced paystub on a purchase loan with such a seemingly tight debt ratio.
If you want to name the lender and loan type, I can be more specific.
How big is this bill? And if I understand you correctly, it's to be paid at closing? Or before? I'm not a huge fan of justifying an approval with paying a credit card to $0. Yeah, I know, it's allowed, but if that is the tipping point on approving your loan vs a decline, it's not something I would accept lying down as a loan officer. Which brings me to, why is the processor reviewing the approval conditions with you? Where is your loan officer? Where are you getting your loan (I'm guessing NFCU). Granted, I know nothing about your loan file, but unless your ratios are whacked out, I'd be challenging that condition (as your loan officer - don't you do this). I have a feeling this could be what I call a feel good or a warm and fuzzy push. It isn't required by the automated systems, but it makes the underwriter feel better, which is bunk! But as pfhtex has indicated, without more information, it's all too easy to issue opinions that are meaningless -
I had two VOE. One several weeks before I closed during the underwriting process, and then another VOE the day before I was due to close. I'd either push back on the requirement to pay off the Amex, or cut your living expenses to the bone. I have several cards I use that get paid off once a month, and they weren't an issue (although I don't think I had any balance over 1k).
Although, don't you have savings, etc., that could cover your expenses for the next couple of weeks?
Although, don't you have savings, etc., that could cover your expenses for the next couple of weeks?
Quote:
Originally Posted by Jkgourmet
Does anybody else think it's kinda crazy to be buying a house when you can't pay your AMEX bill without getting an advance on your paycheck????
The problem may be more the underwriter/loan officer. I've been told by mine not only to not use CC's, but not to touch my savings until I close. Even though I have way more in savings than what I'll need to pay at closing, the underwriter wanted it left alone. Maybe they were told something similar. (I have a coworker who closed on a house last month and was told the same thing) And if they're like me, you don't keep a lot extra $ in checking, but instead keep it in savings. (Makes it damn inconvenient to do any planning like reserving movers since they want a deposit.) I'm crossing my fingers there's no sudden expenses that come up until I close next week, or I may be in a similar boat
The problem may be more the underwriter/loan officer. I've been told by mine not only to not use CC's, but not to touch my savings until I close. Even though I have way more in savings than what I'll need to pay at closing, the underwriter wanted it left alone. Maybe they were told something similar. (I have a coworker who closed on a house last month and was told the same thing) And if they're like me, you don't keep a lot extra $ in checking, but instead keep it in savings. (Makes it damn inconvenient to do any planning like reserving movers since they want a deposit.) I'm crossing my fingers there's no sudden expenses that come up until I close next week, or I may be in a similar boat
Common sense needs to come into play. In that last minute credit pull, your lender is looking for a 3% change or anything that pushes your ratio over their underwriting max back ratio. We've all had buyers that "do themselves in" just before closing. It's sometimes easier to utter shorthand, "don't do nuthin' and all will be okay."
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