Working with a broker who is working with the lender. I'm trying to prove my income and having problems pleasing the lender.
So far, in regards to income verification, I have provided:
- copies of 2008, 2009 and 2010 tax returns (including 1040 forms and schedules for personal taxes as well as 1065 and K-1's for a small partnership I am in).
- W-2's from all employers from 2008, 2009 and 2010 (I changed jobs in 2010).
- direct deposit paystubs from my employer
- bank statements (which show the direct deposit amounts from my pay)
- letter from a CPA certifying my 2010 taxes were completed (they have not yet been processed by the IRS).
- copy of check cashed by the IRS for 2008 taxes
- IRS tax account statement and transcript for 2009 taxes
- Letter from my employer's HR department to indicate my employment history
My W-2 income, by itself, is enough to support the mortgage. I am not relying on the partnership to support me (in fact, the partnership is ending at the end of this month).
The lender has responded that the information above is not enough to prove my income; they asked that the CPA sign page 2 of my 1040 for tax year 2010. So he did and we sent that onwards. We've had dead silence now from the lender for the past four days.
The loan is for $240,000; the property appraised at $300,000 so we fit the 80/20 ratio to avoid PMI.
The monthly Principal & Interest payments would be 19% of my gross income. Add in escrows for taxes and insurance, and the monthly mortgage payment is about 25% of my gross income. I have another 8% of my gross income that goes to student loans, car payments, real estate taxes and house insurance, so that my total debt-to-income ratio, with real estate taxes etc., is about 33% of my gross income.
My credit scores were all 750+.
From my perspective, it seems to me that the lender almost doesn't want to make the loan. They get a piece of information in, then wait 3-5 days, then ask for something else. We slid past the rate lock two weeks ago.
What am I missing that is making me such a terrible risk?
the basics:
single family home in a stable market (per appraiser's report)
20% equity
escrowing taxes & insurance
P&I equal 19% of gross income
sum of all debts + real estate taxes + insurance equals about 33% of gross W-2 income
credit scores all 750+
The last time I went through a mortgage application process where the lender needed tons of documentation, the last thing I had to sign was an agreement that I wouldn't get pregnant for at least two years. That was back in 1985 - I've heard that such agreements are no longer legal. As a point of curiosity, does anyone know when it might have become illegal to require that kind of documentation? (Just in case they ask for that this time too).
Thanks,
Helaurin
Starting Score: 2014 775