What if I cannot produce a letter?

[stormysar]

This is the second time my husband has been told he needs to obtain a letter concerning an issue and can't get it.

The first time was a letter from the bank.  Our bank doesnt write letters.  We found a solution.

Now they want a letter from his employer stating that his overtime is likely to continue.  But he hasn't had any good overtime in over a year.  A shift here and there but nothing regular.  But they want a letter from his employer stating that overtime is likely to continue.  His local office will not write letters.  His lender tried to get the information on their own, but they cannot obtain it.  They said they need this letter to continue.

Is it possible for them to require a document we can't produce?  Even they can't obtain it after calling his employer.  What now?

[topa]

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@stormysar wrote:

This is the second time my husband has been told he needs to obtain a letter concerning an issue and can't get it.

The first time was a letter from the bank.  Our bank doesnt write letters.  We found a solution.

Now they want a letter from his employer stating that his overtime is likely to continue.  But he hasn't had any good overtime in over a year.  A shift here and there but nothing regular.  But they want a letter from his employer stating that overtime is likely to continue.  His local office will not write letters.  His lender tried to get the information on their own, but they cannot obtain it.  They said they need this letter to continue.

Is it possible for them to require a document we can't produce?  Even they can't obtain it after calling his employer.  What now?

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I assume you are looking to get a pre-approval and that the lender is trying to verify income. There is a difference in terms of how much you would qualify for based on income levels, which is the reason the lender is trying to validate the income. Would you still qualify for the loan based on the non-OT income?

[stormysar]

We are approved with conditions.  We already did the pre approval process.  The loan was based on normal pay, not overtime. 

[topa]

That's odd. I hope some of the pros chime in, but I dont see any reason the lender should ask for this. Perhaps there is a miscommunication somewhere.

[stormysar]

That is what we were thinking.  Can they refuse a loan based on a document that is impossible to provide in a case like this?  We have met all other conditions.  This is round two through underwriting.

[ezdriver]

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@stormysar wrote:

That is what we were thinking.  Can they refuse a loan based on a document that is impossible to provide in a case like this?  We have met all other conditions.  This is round two through underwriting.

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Your lender's request for written confirmation that overtime pay will coninue indicates to me that your base income alon is falling short of qualifying you.

Did you state overtime income in your mortgage application?

What type of lender are you working with [broker,bank, banker, etc.]?

If I'm wrong with my assumption, then you have a lousy lender. Find a new lender pronto.

[ShanetheMortgageMan]

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@ezdriver wrote:

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@stormysar wrote:

That is what we were thinking.  Can they refuse a loan based on a document that is impossible to provide in a case like this?  We have met all other conditions.  This is round two through underwriting.

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Your lender's request for written confirmation that overtime pay will coninue indicates to me that your base income alon is falling short of qualifying you.

Did you state overtime income in your mortgage application?

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+1.  They wouldn't be asking about OT if they didn't need it to qualify.

Your employer doesn't need to write a letter ... they just need to complete the Verification of Employment form and mark "Likely" when it asks about the continuance of OT.

[stormysar]

they already filled out the vertification form.  It wasn't enough for underwriting.  They wanted an actual letter stating whether it would continue or not.  But they waived that requirement today and we have met our final conditions.  So now it's back to underwriting and hopefully head to closing.

[ezdriver]

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@stormysar wrote:

they already filled out the vertification form.  It wasn't enough for underwriting.  They wanted an actual letter stating whether it would continue or not.  But they waived that requirement today and we have met our final conditions.  So now it's back to underwriting and hopefully head to closing.

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Sweet. Hope it is smooth sailing all the way to the closing table.