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If you have a good income, stable job, and excellent credit, how hard can the process be?
They ask for stuff (income tax return, W-2 forms, Bank Statements, etc.) and you give it to them. What's so hard about it for most who experience difficulties????
I have no idea. Being from Canada and reading some of the posts that most of you Americans deal with going through financing, closing, etc....everyone makes it sound extremely complicated. It's a very similar process here, but no one seems to make it out to be the clusterf**k I constantly read about on these boards.
Except for the amount of paperwork I've never found it that difficult.Maybe the first time I went through it but at that time we were stretching our limits (and mortgage rates were over 16%!) And then the main concern was would it get locked in before the payments went above what we could afford.
If you have a good income, stable job, and excellent credit, how hard can the process be?
They ask for stuff (income tax return, W-2 forms, Bank Statements, etc.) and you give it to them. What's so hard about it for most who experience difficulties????
Some people, or worse yet, representatives involved in the lending process, lie about these things. Trust but verify.
If you have a good income, stable job, and excellent credit, how hard can the process be?
They ask for stuff (income tax return, W-2 forms, Bank Statements, etc.) and you give it to them. What's so hard about it for most who experience difficulties????
When lending large amounts of $$ they have to protect themselves. Banks want to verify that they have a very good chance of getting paid back. It is a lengthy process and that is no secret.
If you have a good income, stable job, and excellent credit, how hard can the process be?
They ask for stuff (income tax return, W-2 forms, Bank Statements, etc.) and you give it to them. What's so hard about it for most who experience difficulties????
I don't think its really about being difficult. I think it's more a matter of principles and banks wanting more information and stuff they really shouldn't be entitled to. For example, your parents give you a few grand to help with closing and the bank wants letters from them saying it is a gift. You sell a car a month before buying a house, bank wants to see a copy of the bill of sale as well as a copy of the title (on a car you already sold, mind you). Bank wants to see bank statements as well as transaction details - is it really any of their business that I spend $19.99 a month at bigblackbiatches.com?(not a real site, I hope, dont go there). Then at the end of it all, no matter how responsible you are, how much you know your budget, they will tell you if you can theoretically afford their loan or not.
For people that have straight forward finances it isn't an issue. Things get more complicated with business owners who don't pay themselves salaries, but take cash withdrawals irregularly, or people that have large cash deposits without a paper trail of where they came from. Garage sale money can cause issues.
I had a client that would stick his savings in a safe. So when it came time to deposit that in his business account for a downpayment, voila...huge cash deposit with no paper trail. He had to go back years on his income and checking accounts showing the withdrawals and those equalling the total in his safe to use that money in the transaction. If you don't do things like that, you are fine.
If you have a good income, stable job, and excellent credit, how hard can the process be?
They ask for stuff (income tax return, W-2 forms, Bank Statements, etc.) and you give it to them. What's so hard about it for most who experience difficulties????
You just answered your own question, if you have good income, stable job and excellent credit, it's easy. Many people going for the loan has an issue with one of those three. In my case, it was the "stable" job. Even though my husband been in the same field for over 20 years and only had a few employers, he had switched a few months before us buying our house. It was a headache to get all the documentation and jump through the hoops as they wouldn't count this income or that income despite getting letters from corporate showing it's an unchanging part of his salary etc. (not variable etc)
And they would "lose" the paperwork despite having the emails showing their confirmation that they received my files. But I was smart to it and just resent the original emails with the required files. So it wasn't that big of a deal, just bothersome.
I don't think its really about being difficult. I think it's more a matter of principles and banks wanting more information and stuff they really shouldn't be entitled to. For example, your parents give you a few grand to help with closing and the bank wants letters from them saying it is a gift. You sell a car a month before buying a house, bank wants to see a copy of the bill of sale as well as a copy of the title (on a car you already sold, mind you). Bank wants to see bank statements as well as transaction details - is it really any of their business that I spend $19.99 a month at bigblackbiatches.com?(not a real site, I hope, dont go there). Then at the end of it all, no matter how responsible you are, how much you know your budget, they will tell you if you can theoretically afford their loan or not.
I agree that the above are annoyances, and they are annoyances that even extremely qualified buyers go through as well. So, to that end, one can say that the banks at least treat all people fairly. One thing that bothers me about the requirements that this information be disclosed, is that it brings third parties into it.
The car sale example is a good one. On a loan we took out just over a year ago, my husband sold a classic car for a large sum of money. The bank wanted to have an explanation of the large deposit and wanted to see the Bill of Sale. Fine, I get that. But, the Bill of Sale has the purchaser's name and address on it. How is that my mortgage lender's business?
Also, we have always had to provide full and complete employment contracts to show valid proof of income. Again, I understand the need for income, but our employer can simply verify employment and compensation terms. No, lender wants the entire agreement, which any attorney will advise you against sharing with a third party (lender).
So, we have experienced the above and although it can be frustrating, it's just the way it is. There is a very easy way to avoid the process.......just don't ever finance a home purchase.
If you keep decent records of your financial information and maintain it then getting a mortgage can be pretty simple. Having a good mortgage representative helps too.
Most people should have W-2's, tax return, recent pay stubs etc...
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