Getting ready to apply for my first real mortgage. The LO said we would need to suppy a lease and receipts for 12 months leading up to the closing. This is the problem....
I am buying the house that I currently live in and is owned by my parents. We have never paid them. I make the mortgage payment directly in cash each month to the bank who holds it. (another whole story of why it is in cash - they were real bad 10 years ago about applying the check in a timely manner and we found a state law that says if they receive it in cash they have to apply it THAT day regardless of sending it to a processing center).
My mother said she woudl write up a lease and make up 12 receipts for us. Will this sufice? Are they going to want canceled checks or anything? I can show where I took the money out of my account for most of it but my other half waits tables as a second job and sometimes we use his tips that have build up.
What is the best route to go? I hate the idea of this one little detail holding us back.
@tooleman694 wrote:This is one of my conditions as well, my Mom had to write a letter that I was living rent free.
Wish it woudl be that easy for us!
The LO talked to the underwriting departmnet and they specifically said we have to have 12 months of receipts! I hope if my mom gets a receipt book and writes out receipts that would be good and not having to provide canceled checks. This is wearing my nerves thin!!!
@DallasLoanGuy wrote:rent verif not always required.
what are your scores?
is this a manual underwrite?
For the most part I think we can produce the withdraws but I can't say for all 12 months. I have the mortgage receipt but it is in my parents name and they said that won't do!
This is not manual unwriting. We have been talking with the LO getting our ducks in a row and make sure we want to go with them and that we have everything we need. I dont' want to get the process started and than get denied and have to start all over. My scores are (lender pulled) Tu 669, EQ 662 and EX 681. My soon-to-be husband are all over 740. I am hoping to jump up to the 700 club next week. I have a court date on Tuesday to have a judgment vacated that was entered in error (medical bills that were not billed to insurance correctly) If vacated, (judgment not even 2 yrs old) I think my scores will fly as it is the only bad thing on my report. I did supply proof to the LO about the judgment and he said my reports says satisfied and with the letter from the hospital that I have nothing to worry about. Just the damn rent receipts!!!
Second thing they want is 4 postive trade lines reporting for 12 months each. I have a visa with 10 months, a student loan with 10 months, health insurance for 12 months and car insurance for 12 months. (the two insurance comes out of my bank account but they said they could make those fly). My other half has enough tradelines to cover me, you and anyone else who needs some. Wish it was 4 tradelines BETWEEN us.
The LO is with our credit union and is offering us rates that no one else can touch!! THe house is valued at $155,000 and purchase price is $96,850. We are putting 5% down and going conventional.
