Last year I bought a home, went thru a Mortgage Broker I had used before and we used MICHIGAN MUTUAL as the lender. I was in their 620 to 640 program and I had very little to complain aobut. I got a 3.75 rate on 15 yr. FHA. They didnt beat me up too badly in UW, all was pretty smooth.
Fast forward to last month, I sell the home I bought last year for an 18K profit. MY mid-score is now 660, I app with my GF who has a 770 mid, we go into contract on new home. Same broker says, things will be real smooth, says UNITED WHOLESALE is the way to go this time. U.W. offers 3.75 on a 30 year FHA, Broker says I can buy it down to 3.5 for like another $1500 down. So we are looking at putting $9200 down. We get a quick conditonal approval, but its STIPPED to death!! First problem, my GF is self employed, she has filed taxes the last 9 years as self employed, but she doesnt have a formal incorporated or licensed business. She cleans homes and small businesses with another friend. U.W. has a big problem with this. They want a letter from a certified CPA as to her buisness practices???? We dont use a CPA, we use an atty that also doesn taxes and guides businesses. He writes a very well written letter for UW saying that he has been her buisness advisor for 3 years and she keeps great records and runs a reputable business and that she is not required to be licensed or incorporated. We turn this in along with the 14 other STIPS, UW pushes back on 3.
1- Wont accept letter from attorney, wants us to go to a certified CPA and get a similair letter.
2- I have a lifetime pension award from the government. I enclosed my award letter stating that it is a lifetime award and comes with a 3% annual raise. UW pushes back and says wont accept lifetime letter, wants a letter dated this calendar year saying my pension was awarded for the year 2013???
3- Also wanted bank statements signed and stamped by bank. Even though they had acct. number and back name on each page. We turned in 3 seperate bank statements, all the same, they only picked on one??
Long story short, I told BROKER, UNITED WHOLESALE can shove it. I think their demands are ridiculous. I wont jump through hoops just for sport. I told him I am sure I could walk into a local bank and get a better rate and less hassle. We have good credit, stable income and money in the bank, someone will loan us money.
One hour later BROKER calls and says he has a deal in place with MICHIGAN MUTUAL, they are offering 3.25% on a 30yr FHA, and only want $7700 down?? WTH?? Why didnt he go with them initally, they were so easy to deal with the first time, we wasted two weeks with UNITED WHOLESALE. We stopped and signed the new docs and couldnt believe the difference, this drops the payment like $100!! saves us considerable closing costs and hopefully doesnt come with the STIPS the U.W. offer came with.
I wonder if UNITED WHOLESALE was paying the broker better than MICHIGAN MUTUAL and that is why we were steered in their direction initially. I have used this broker 3x and never found him to be shady.
