Advice needed on underwriting

[Anonymous]

Full disclosure I also posted this on CB 

Sorry in advance for the book I am about to write

              So we started our Journey back in late april, picked out a realtor and a broker he suggested has closed a lot of his loans relatively easily. We give them all of our info etc and end up with a mortgage mid score of 649. Originator tells us about 5 things we need to pay off as conditions of the preapproval. Total is around 4500 no big deal we pay it and move on. We find a house in may and get under contract may 29th, do inspection and everything and submit for appraisal. The appraisal does not come back until 6/27!!!! by now we have basically pushed our timeline a ton and even more fun the appraisal comes in at 6k below our offer. We go back and forth for a full week negotiating price again and finally settle at appraisal price with seller kicking back 5k for closing and prepaids. Moving forward the originator is now submitting to the processor all of our file and they call me and let me know that we might have a huge problem. My wife and I both receive milage or a vehicle stipend because we use our own cars for work and work on the road, the processor says we must take a large portion of this as a tax liability and not as income and it becomes a debt that we make payments on monthly(none of this makes sense to me). But whatever they get us to 50% DTI with some sort of formula they have come up with and still approvable and the file goes to underwriting.

          We were told that since it was submitted on a monday I would have an answer by Saturday or the following monday with conditions putting us clear to close within a week ( 3 days from end of our contract). Monday comes and passes and nothing. Thursday comes and Originator calls to inform me that underwriting had declined us due to mileage and not counting it right?? But they have since found a form that worked for approval and I am approved with conditions. I now have conditions asking about why I changed industries back to my old industry, and one asking why my company does not have a address in the state I work in( I am remote and work all over my state my car is my office). I fulfilled conditions on friday last week and am told it will all be resubmitted today and if all goes well supposedly will have a C.T.C. by wed. and able to close by Aug 1. Our contract ends this friday now that we extended it and the sellers are getting frustrated as am I. I have to let my current place know on monday if I am staying or not because my lease ends Sept 1 and I do not get to take possession until 30DAC. I am at a loss of words and a loss of what to even do. 

[Anonymous]

I know this stuff is really stressful but it sounds pretty normal to me... I also had a bunch of craziness happen during pre-approval that ended up throwing out about $1500-2000 per month of my income and REALLY squeezing what I can afford. Luckily, my lender did all of that before approving me at all so it wasn't a big shock down the line but stuff like that just happens. It's exhausting but it is what it is. In my case, they won't include child support that ends in less than 3 years and mine ends in JUST shy of 3 years, and they also won't include my self-employment income because it's only verifiable for one year's worth of tax returns (because, uh, I only began doing it 1.5 years ago). 

That said, if they got you ready to go now, which it sounds like you are, try to relax. Having to write explanation letters like that is really common. It doesn't mean anything, and if that's all that came out of the conditions you're golden!

[Anonymous]

It is the most frustrating and scary part of the process. We have to give 60 days notice and all they would say was "it looks great but nothing is 100% until the loan closes".

Letters of explanation are normal even if what your explaining seems self explanatory.

[tehpud]

My LO and agent both told me that the last week (maybe 2 weeks) of coming to closing is like hell.  They weren't lying.  My UW wanted me to pay off a series of debts.  I did, but then they wanted proof.  We ordered a credit supplement to update through the CBs and the UW still rejected because he wants to see my statements showing where the money came from.  Provided to him and STILL got rejected because he wanted me under the 43% DTI even though the criteria was 44%.  It was extremely frustrating and closing day was coming quick.

My point is, stay persistent, calm and patient.  Keep tackling at it and work closely with your LO.  Make sure your LO knows the circumstances and ask to speak with a supervisor.  Nobody gets paid until the loan goes through and everyone wants that loan to go through. 

Good luck

[ezdriver]

If you choose to give your landlord notice of leaving before you have a clear to close, you are taking a big risk. I recommend that you wait until you have a CTC or make alternative housing arrangements if your closing does not happen as expected.

[Anonymous]

Got clear to close yesterday!!!! Closing scheduled for 8/2 4pm est. Not to be a negative nancy but what is left on the list of things that can go bad?

[IOBA]

Don't ask!!!

When we did our last mortgage, I had to write letters stating that our joint checking and savings accounts really belonged to both of us and that DH had full access to all the funds in the account.  Duh - they ARE joint accounts!  (The mortgage was just in his name.)

Then, they wanted me to write a letter "gifting" him the down payment for the place.   Ok, but why?  Did that.

And literally, no joke, about three days before closing, the underwriter DEMANDED I write a letter "gifting" ALL of the money in the joint bank accounts to my house and show proof of where the funds came from.  Uh, you already have three months worth of bank statements - you know where the money came from.  I've already written letters stating he has full rights and full access to the money in joint accounts.  Then this?  I basically "forgot" to do it and we still closed on time.  My LO was NO help when it came to these requirements.  I've had worse - more insane - last minute requirements.  

For that mortgage, we were putting 25% down.  We have regular savings, etc.  We were not a credit risk at all.  

So yeah, some of the stuff coming from the underwriter's offices are just insane and make no sense of us stressed out folks who just want to be done with the whole process!  Hang in there!

[Anonymous]

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@ezdriver wrote:

If you choose to give your landlord notice of leaving before you have a clear to close, you are taking a big risk. I recommend that you wait until you have a CTC or make alternative housing arrangements if your closing does not happen as expected.

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Good advice here.