Heading back to Underwriting and got a concern

[tooleman694]

I need to give my updated bank statements. And I was looking thru them and I see I had a bad month back in Nov - Dec.

So first I was trying to pad my checking account so I transferred money from savings, but by mistake I transferred checking into savings and I went overdraft. The next day I called up the bank and they corrected it for us.

Then a few days later I noticed that I had overspent so I transferred more over to make sure rent cleared. Then my Wife went crazy Christmas shopping and I transferred more to cover that.

Then finally my Bonus came in, and I sent all of it over to savings.

From there we are fine.

It just looks like from a 2 week period we were basically living off of savings.

Its not like we are broke or anything, just was spending more then I had budgeted and had to tap savings.

Just dont want the UW to trip out.

[Blackhawks_girl30]

In my experience, I was only asked to write brief LOE for each transfer.  I was also afraid at the time of providing updated bank statements I would be questioned because some days I got down to the dollar literally lol!  Never did they mention, just said they were looking at the final number to make sure I had enough to close.

[BCullum]

I had something similar, to where my bonus check literally replenished my savings after Christmas beat the crap out of me. I wrote a LOE attached with my statements just giving the blanket statement "Purchased a lot of Christmas gifts knowing my Bonus check was coming" and it was never questioned (at least to this point). I acted first before they asked for it, you may want to do the same so your LO has it in hand in case it comes into question.

[tooleman694]

Yeah after my Bonus, I actually put more into savings that month then I took out. But man all of this just makes me freak out.

[BCullum]

I'm the same way, and im in a completely different boat. I know you already have a denial under your belt and I know that will make you weary. Ive just Google/read stories and scared myself into being overly cautious. 

[OilFieldEngineer]

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@BCullum wrote:

I'm the same way, and im in a completely different boat. I know you already have a denial under your belt and I know that will make you weary. Ive just Google/read stories and scared myself into being overly cautious. 

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I actually gave a LOE telling the underwriter that my spending patterns were none of their business and were my private financial concerns. The house payment being incurred is almost identical to the rent I pay now and that has never been late or never had an issue. How and when I spend my funds after my bills are paid are my private concerns. 

The loan officer thought it was funny but in all honesty if your bills are paid it is none of their business. But then again maybe thats why they are giving me problems now. But on the bright side I called the builder today and told them about I didn't appreciate their in house lender's underwriter giving me so many issues and she called the vice president of their lending division. I actually got an email today that they are changing to another underwriter and they appologized for the previous exchanges I had endured. The vice president had stated he looked at the file and agreed the underwriter was being overly critical and pledged to have me a final answer by Tuesday at 11am.

Lesson learned don't put up with too much crap from an underwriter at the end of the day they are providing a service to you the consumer and there is a certain level of professionalism and respect that should be excercised. These underwriters asking for too personal of things or invading your privacy is a shame and is part of the reason for the slumped economy. I agree that prior to 2008 lenders probably go out of hand but this seems like it is being completely over regulated and people who can afford a home are being denied loans on the basis of technicalities. 

[JM-AM]

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@OilFieldEngineer wrote:

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@BCullum wrote:

I'm the same way, and im in a completely different boat. I know you already have a denial under your belt and I know that will make you weary. Ive just Google/read stories and scared myself into being overly cautious. 

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I actually gave a LOE telling the underwriter that my spending patterns were none of their business and were my private financial concerns. The house payment being incurred is almost identical to the rent I pay now and that has never been late or never had an issue. How and when I spend my funds after my bills are paid are my private concerns. 

The loan officer thought it was funny but in all honesty if your bills are paid it is none of their business. But then again maybe thats why they are giving me problems now. But on the bright side I called the builder today and told them about I didn't appreciate their in house lender's underwriter giving me so many issues and she called the vice president of their lending division. I actually got an email today that they are changing to another underwriter and they appologized for the previous exchanges I had endured. The vice president had stated he looked at the file and agreed the underwriter was being overly critical and pledged to have me a final answer by Tuesday at 11am.

Lesson learned don't put up with too much crap from an underwriter at the end of the day they are providing a service to you the consumer and there is a certain level of professionalism and respect that should be excercised. These underwriters asking for too personal of things or invading your privacy is a shame and is part of the reason for the slumped economy. I agree that prior to 2008 lenders probably go out of hand but this seems like it is being completely over regulated and people who can afford a home are being denied loans on the basis of technicalities. 

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This works 40% of the time, the other 60% of the time may see you looking for a new lender. lol

The truth is most UW's want to approve you. It makes their job easier. But some become a little harder to please because of bad experiences. I know we all feel we deserve the loan and we are all perfect at paying our debt (including myself), but the fact is many of us perfect customers do end up defaulting. Makes it even more sad that some start defaulting in less then a year, not necessarily on purpose but things change, lose a job, business doing bad, some medical emergency, as examples. When you default on a loan in a specific period of time, that UW has repercushions, and even possible termination. They are just like us, they need their job and income to help support their families. So while we feel they are unjustified, I personally wouldnt approve some of the loans I seen pass over my desk, knowing I may be looking for a job. While this is a very big industry, the word gets around quick, and as a UW, you would probably not be taking a job as a UW at another location for mortgages. Probably have to settle for a Processors position for less money, and or change your career industry to Insurance or something.

[tooleman694]

I dont think it is right that an underwriter pays the price if someone defaults..

A billion things can happen, its not the underwriters fault.

[JM-AM]

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@tooleman694 wrote:

I dont think it is right that an underwriter pays the price if someone defaults..

A billion things can happen, its not the underwriters fault.

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I agree, and it is looked upon I am sure according to situation.

This is how requirements and overlay requirements are added to avoid these situations.