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we were supposed to close on 1/22 but they said they have to have proof of us working at our new job for 30 days first, apparently this is new?
So anyway, now close is on Feb 2, right after we get our first paycheck at our new job. You'd think that'd have given us plenty of time but it feels like we're coming down to the wire and biting our nails!
They have been SOOOO picky, wanting a paper trail for every deposit made into our checking acct the past several months (the deposits are mostly paychecks but they think they're "suspicious"), and every little thing. The latest thing is the underwriters want a "terms and conditions" of our Roth IRA that we withdrew part of our down payment out of penalty free for first time home purchase. Everyone seems really about what they want, it's your money and you can take it out whenever you want when it's your IRA
Is this common? our mortgate broker seems to think if we'd gone with another bank we wouldn't be having quite as many issues, but they had the best rate at the time (not now). He's mad at them. We have great credit, we're putting MORE than 20% down, and only borrowing $90k, he thinks they're being a bit too particular. Why could they be doing that? It's making me nervous because we're running out of time now to give them all these little things before the closing date. We're paying rent by the day and don't really want to push off closing any further. Or what if we lose our loan altogether?! reasurre me?
Underwriters are asking for a lot more information today. What you are going through is pretty typical.
During the housing boom, lenders where way to easy underwriting loans and now they have gone the complete other direction and are way to tough in underwriting.
My experience is really similar to yours. It's taken almost 2 months to close an FHA loan, because every time we get the documentation asked for, they want more.
I really think that what we are experiencing is the new normal. It's enough to make me never ever ever want to sell the house I'm buying, that's for sure.
All of that is typical and has been typical ( and annoying) for a long time. The only exception being 30 days on new job. Used to be they just wanted your first paycheck but now seem to have extended that to 30 days. I don't know why your paycheck deposits would be considered suspicious. Do they not show your employer name next to the deposit on the bank statements? And as for sourcing deposits? I have one lender who wants to source anything over $ 50.00. Drives me nuts. I want out of this business so bad!!
All of that is typical and has been typical ( and annoying) for a long time. The only exception being 30 days on new job. Used to be they just wanted your first paycheck but now seem to have extended that to 30 days. I don't know why your paycheck deposits would be considered suspicious. Do they not show your employer name next to the deposit on the bank statements? And as for sourcing deposits? I have one lender who wants to source anything over $ 50.00. Drives me nuts. I want out of this business so bad!!
It is getting ridiculous what lenders are asking for. Common sense is nowhere to be found.
It is getting ridiculous what lenders are asking for. Common sense is nowhere to be found.
Tell me about it. I have two closing, one for tomorrow and one for Friday that should have been clear to close last week and they are still sitting in underwriting! Thankfully my inside rep at this lender is a rock star and will be able to do a same day closing for me but it's getting to be a real pain having to tell realtors that we will not have docs to the title company until the last minute. It's like the lenders are so afraid to sign off on that one last condition np matter what it is.
Speaking of conditions, check this one out. We had to show proof of deposit, which is normal, so we got the standard copy of cancelled check, actual bank statement ( not a printout but the one that comes in the mail with name, addy, account number, etc) showing the check cleared the bank and the lender came back wanting a freaking internet printout from the banks website instead!!! How backwards is that? Since when does any lender accept the internet printouts and especially over an actual bank statement??? I swear the mortgage business has turned into the Twilight Zone. All I need is Rod Sterling in the background narrating my day lol!!
Tell me about it. I have two closing, one for tomorrow and one for Friday that should have been clear to close last week and they are still sitting in underwriting! Thankfully my inside rep at this lender is a rock star and will be able to do a same day closing for me but it's getting to be a real pain having to tell realtors that we will not have docs to the title company until the last minute. It's like the lenders are so afraid to sign off on that one last condition np matter what it is.
Speaking of conditions, check this one out. We had to show proof of deposit, which is normal, so we got the standard copy of cancelled check, actual bank statement ( not a printout but the one that comes in the mail with name, addy, account number, etc) showing the check cleared the bank and the lender came back wanting a freaking internet printout from the banks website instead!!! How backwards is that? Since when does any lender accept the internet printouts and especially over an actual bank statement??? I swear the mortgage business has turned into the Twilight Zone. All I need is Rod Sterling in the background narrating my day lol!!
I'm glad I'm not alone in this, although my husband and I are really starting to get nervous that they're not going to give us this loan, and then what?! that would be rediculous. We are really hoping to close next week, otherwise we lose more $$ to rent, and more lost sleep.
We offered on this house based on giving them 4-5 weeks "rent by the day" until closing too. If we end up owing more rent than planned (again), then I'm gonna wish we'd bought the house for less, it's starting to edge towards not-as-good-of-a-deal at this point.
We called our actual investor who managed the Roth IRAs for us and had him fax in a statement about "terms and conditions for withdrawl" and a letter, and our mortgage broker said it was the same stuff he already had that he thought they'd reject, but we have to try it because that's all there is. Nobody understands what they want to know about the IRA!
We've done all the paper trails for deposits and such, but they want to know why we were allowed to take that money out. Um, because, it's our money?!
We only get paid once per month so the deposits looked large and suspicious. We had our employer mail all the pay stubs, etc. and we wrote a letter explaining every major deposit we'd made in the past few months. So far so good on that one....
My experience is really similar to yours. It's taken almost 2 months to close an FHA loan, because every time we get the documentation asked for, they want more.
I really think that what we are experiencing is the new normal. It's enough to make me never ever ever want to sell the house I'm buying, that's for sure.
FHA is very particular, but its really your loan officer who needs to be on top. If everything is in order then 2 months is too long.
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about what they want, it's your money and you can take it out whenever you want when it's your IRA 
