06-19-2014 03:47 PM - edited 06-19-2014 04:02 PM
What a shocking and demeaning/accusatory process involved in buying a home.
Scheduled to close in two weeks but this is beyond sickening. Must show I have had $127(yes, one twenty seven dollars) in my account for 2 months. Make $70K gross per year. Editied to ADD" $4K in account using for DP. Just demeaning in every way no matter the excuses used to justify.
No wonder so many say it is not worth it. If I had to do over I would definitely back out quick.
Before you ask, mid score was 676 per lender pull(of course MYFICO shows 691, what a joke no matter the excuse), DTI on front is 11%, back is 14%,obviously total is 25% and all pre approvals/everything passed and complete at 4.35%.
I just cant believe how applicants are treated like they are crooks until proven otherwise.
Unless you enjoy grief,pain, aggravation and just plain embarrassing moments I recommend that you skip the journey that I am sure has killed some physically and killed many more marriages.
06-19-2014 04:11 PM
Thanks for sharing your experience!
I'm sure it will be all worth it in the end. Congrats on your new home.
06-20-2014 12:19 PM
Not sure I would go as far as saying you wouldn't recommend anyone buy a home, based on the experience of one person. Some have wonderful experiences, others have difficult and stressful experiences. Some have difficult experiences for good reasons and others just because they hooked up with the wrong people.
I had a wonderful realtor that I met through a friend of mine. My loan officer was recommended by my realtor. Loan officer and underwriter had a very good working relationship. Every step of the way, it was done correctly the first time.
06-20-2014 04:22 PM
Having to provide bank statements is a well known fact of purchasing a home. I don't understand why you find that so offensive.
You are asking for a loan of several hundred thousand dollars. This isn't 10 years ago when you got a loan if you had a heart beat.
Is there something specific that has offended you?
06-21-2014 04:39 AM - edited 06-21-2014 04:40 AM
I make $70K with an average 7% increase every year for the past several years.
I am buying a home that is selling for $104K with the loan itself running approx $95K.
My mid score(another racket using outdated formulas no one else can get) is 679.
I have been with the same employer 4 years and the same field for 12.
I have turned in 5 months of pay stubs and written the LOE as to why I deposited those checks. I have to continue turning in every stub until closing.
I have turned in 4 years of Tax Statements.
My total DTI is 37% house in.
Passed through underwriting in less than a day.
Having to explain where I am going to get $127 to bring to closing is a huge deal for them. How sad is that I have to prove where less than a days wages came from?
Not allowed to use the several grand I have stashed at home for the purpose of buying a house because I certainly stole that money if it is not in my bank accounts. Funny part is, I have that money by keeping $100 of every check in cash to stash for emergencies.
The entire process is a study in accusing the borrower of wrong doing.
06-21-2014 07:29 AM
Matt, it sounds like you have a strong file yet you are asked for 5 months of pay stubs and 4 years tax returns. I really don't get that one at all.
I don't know if you are using a mortgage broker (sounds like it) or a lender that actually funds the loan
I have never heard of someone being put on the ropes for depositing their paycheck. Normally they only ask for deposits that aren't your normal paycheck.
It is definately the lender you are using - there are others that don't have to go through what you are describing at all.
06-21-2014 08:15 AM
Sorry to hear about your bad experience so far ... but the golden rule of lending says he who has the gold makes the rules. The lending industry went from being able to qualify for a loan if one had a heartbeat to needing to provide everything short of a DNA test in order to secure mortgage financing. Call it back to the future because it was even harder to secure mortgage loans 30 to 40 years ago. We've come a long way even if it does not seem that way. Sounds like to have a lender with extreme underwriting guidelines that's all.