Frustrating!!! Requirements from lender.

[Anonymous]

OMG! I just got a list of documentation needed for UW:

Bank statement from grandmother (they are requiring this, even though the letter I got from them with the gift letter stated that if the closing was more than 30 days from the gift, they would only need canceled check - I'm not sure she will give it to me).

Child support order for kids dad because some cash deposits were money he gave me + a gift letter from him (Why does there need to be a child support order for my kids' dad to give me money toward their upbringing? And why would he sign a FHA gift letter stating he was giving me money toward a house when that is not the purpose or use of the money he gave me?)

More documentation of babysitting (P&L statements for 2007-2010)

Gift letter from my mother for money she gave me to pay me back money I lent her. (These people seem gift-letter happy, and again, not a gift or for purchase of house.)

12 months canceled rent checks -- I guess in case my landlord lied for me and said I paid on time and I didn't. Somewhat understandable.

A budget for house payments and maintenance - again, understandable.

Three more "nontraditional credit" histories. (Apparently the two traditional trade lines plus the one non-traditional plus rental history was not enough. Seriously, I don't have that many bills!)

July Bank Statement + Source of any non-payroll deposits on that statement.

Everyone says that my lender wants my loan to be approved. But I honestly believe that an Underwriter's job is to find resons not to approve the loan. I am becoming resigned to the fact that this is just not going to happen for me.

[happy0510]

Wow Sommery,

This is quite an ordeal for you! I haven't even gotten to underwriting yet! I thought my LO was bad...ack!

You haven't told us the name of the lender...we want to know!!

Happy

[Anonymous]

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@happy0510 wrote:

Wow Sommery,

This is quite an ordeal for you! I haven't even gotten to underwriting yet! I thought my LO was bad...ack!

You haven't told us the name of the lender...we want to know!!

Happy

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The lender is Cornerstone Home Mortgage. I expressly did not go with US Bank, because a year ago they denied my loan a week before closing. Come to find out, becauses I am getting a Minnesota Housing Finance Agency loan, guess who will buy my loan when it is completed, and who's underwriting guidelines my lender is following. You got it! US Bank!

Feeling sick to my stomach, frustrated, angry - and I could just about cry right now.

[Anonymous]

Requirements from lenders have swung way to far from the no-doc days before the crash. I feel your pain for having to explain all the penny- anny nonsense. I had an underwriter want to know what a $1700 deposit was 3 years ago. I told him I won a college football handicapping contest. He was concerned that I might have a gambling problem. I'm surprised they don't check your underwear for skid marks! SCREW the underwriters!!

[happy0510]

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@Anonymous wrote:

Requirements from lenders have swung way to far from the no-doc days before the crash. I feel your pain for having to explain all the penny- anny nonsense. I had an underwriter want to know what a $1700 deposit was 3 years ago. I told him I won a college football handicapping contest. He was concerned that I might have a gambling problem. I'm surprised they don't check your underwear for skid marks! SCREW the underwriters!!

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Aqua,

How did the underwriter know about a deposit 3 years ago? You only need 2 months of bank statements?

[Anonymous]

Sommery...

All income that you are using to pay bills and qualify for the loan needs to be documented as to source.  If you can qualify DTI wise without all of those payments (i.e child support) they can skip that.  My guess is they are using that income towards DTI so it has to be documented.  If there is no such documentation, then they need to write it up as gift funds or you will loose the loan.  Same goes with the money from your mother.  Her giving you money  in the middle of home buying has to be documented or it has to be backed out of all financial transactions.  Also, they often do require bank records from all people who give gifts to verify they had the funds readily avaialable (i.e it was not a cc cash advance, overdraft there account, etc becuase in cases like that the money is more than likely a loan, not a gift).

The 3 tradelines is a little weird as you have 2 plus one non traditional (rent is not usually counted as a tradeline...) 

It sounds like you are bordeline and the underwriter is trying to provide enough supporting documentation to get an approval though, not the other way around.  Nowadays, UW have to document every penny that factors into the loan situation.  They are probably wanting the extra tradelines and extra bank statements/budgets to support your credit worthiness due to the somewhat convoluted money issues.

[Anonymous]

We closed in August, and Im not suprised in what they are asking.  My husband and I had a very solid file (both 10+ years on job, no bankruptcy or anything weird on credit).   We had to document every deposit and source it.  Bottom line, the lender is going to sell your loan, most likely.  In order to do so, they have to prove beyond a doubt to their investors that you are low risk.  It stinks that all of us buying now are put through the wringer, even if you have good credit.  But, that is just the result of all the damage that was done by shady loan business, bad real estate..etc.

Good luck to you.

[Anonymous]

pay the $85 dollars but follow up on this disputed charge and when resolved they should be required to send something to the agencies clearing your credit history

[Anonymous]

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@Anonymous wrote:

pay the $85 dollars but follow up on this disputed charge and when resolved they should be required to send something to the agencies clearing your credit history

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I paid the $85 a month ago. I did PFD, submitted the letter from the CA stating that it is paid to UW, and it is already off my credit report.

[Anonymous]

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@Anonymous wrote:

Sommery...

All income that you are using to pay bills and qualify for the loan needs to be documented as to source.  If you can qualify DTI wise without all of those payments (i.e child support) they can skip that.  My guess is they are using that income towards DTI so it has to be documented.  If there is no such documentation, then they need to write it up as gift funds or you will loose the loan.  Same goes with the money from your mother.  Her giving you money  in the middle of home buying has to be documented or it has to be backed out of all financial transactions.  Also, they often do require bank records from all people who give gifts to verify they had the funds readily avaialable (i.e it was not a cc cash advance, overdraft there account, etc becuase in cases like that the money is more than likely a loan, not a gift).

The 3 tradelines is a little weird as you have 2 plus one non traditional (rent is not usually counted as a tradeline...) 

It sounds like you are bordeline and the underwriter is trying to provide enough supporting documentation to get an approval though, not the other way around.  Nowadays, UW have to document every penny that factors into the loan situation.  They are probably wanting the extra tradelines and extra bank statements/budgets to support your credit worthiness due to the somewhat convoluted money issues.

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Thing is, I'm not using any of these funds for the house - except the gift from my grandmother. My DTI is fine without this random money too. Oh well. I'm getting copies of the processed deposit slips from my bank for the underwriter as well as the child support order and a letter from my kids' dad stating that he gave me money for their care.  My processor and LO don't seem worried about it. Seems I am the only one stressing here. I already got my trade lines in (phone/cable/internet, cell phone, daycare).

Thanks for all the positive comments and the info everyone. Three weeks left to go...