another underwriter review -- I thought we were done -- freaking out!

[Anonymous]

So I just got an email from my mortgage people and I'm so worried!!! They told me that the only thing that could keep this from going through would be if I lost my job, but now there are all these questions! And we released half of the earnest money before closing, so I'd be out $2500 if this doesn't happen. So worried! Here's what they're asking. . . 

Garnishment -- I had my check garnished to pay off a judgment. They weren't worried about the judgment, but wanted to know about the garnishment. I think it was about verifying income?

Overdrafts -- I have overdraft protection that comes out of my savings account so I didn't transfer when my account was getting low. They're asking why I have overdrafts. Is this a big deal?

IRS debt -- They haven't pulled the tax transcript yet, but when they do they'll see that I owe the IRS a couple thousand dollars. I've set up a payment plan and the IRS isn't that worried about it (I'm also getting ready to amend the return to bring the debt down, but I'll wait till this house thing is finished.)

Child support -- My ex-husband and I get along great and he has been very honest about his income and raised my child support amount over the years. We haven't gone back to the courts to change it. He's going to write a letter stating the amount that he pays me, but it just went up in August. Are they going to accept the higher amount? They're already disallowing half of it because my daughter will be turning 18 within 3 years.

I'll be so glad when this thing is all done! Any experience or thoughts you can share would be so much appreciated!

[Wovenyarn]

I can speak from experience about child support as I recently closed on a house. I had to get a payment history from child support to verify the deposits as child support even though they were direct deposit. They also subtracted half of my child support because one of my kids would not be getting it for the entire three years. I will still able to close but I had to find a house in a lower price range.

[Anonymous]

I wouldnt worry about the IRS unless its on your credit report

[StartingOver10]

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@Anonymous wrote:

So I just got an email from my mortgage people and I'm so worried!!! They told me that the only thing that could keep this from going through would be if I lost my job, but now there are all these questions! And we released half of the earnest money before closing, so I'd be out $2500 if this doesn't happen. So worried! Here's what they're asking. . . 

Garnishment -- I had my check garnished to pay off a judgment. They weren't worried about the judgment, but wanted to know about the garnishment. I think it was about verifying income? Completely normal for the lender to ask about garnishment details. Yes it is to cross check your gross income to make sure you have enough to make your mortgage payments using the lenders ratios.

Overdrafts -- I have overdraft protection that comes out of my savings account so I didn't transfer when my account was getting low. They're asking why I have overdrafts. Is this a big deal? Hopefully you don't have too many OD's. It can be problematic even if you have OD protection. Get in the habit of transfering funds before you write out your payments rather than having a draft from savings after you are overdrawn. How many OD's have you had in the last 12 months?

IRS debt -- They haven't pulled the tax transcript yet, but when they do they'll see that I owe the IRS a couple thousand dollars. I've set up a payment plan and the IRS isn't that worried about it (I'm also getting ready to amend the return to bring the debt down, but I'll wait till this house thing is finished.) As long as you disclosed the payment amount to the LO when you applied and s/he used the payment in your DTI calculations. Many lenders want to see at least 3 payments too.

Child support -- My ex-husband and I get along great and he has been very honest about his income and raised my child support amount over the years. We haven't gone back to the courts to change it. He's going to write a letter stating the amount that he pays me, but it just went up in August. Are they going to accept the higher amount? They're already disallowing half of it because my daughter will be turning 18 within 3 years. The lenders I work with want to see the paperwork for the child support + evidence of the payments you have received. 

I'll be so glad when this thing is all done! Any experience or thoughts you can share would be so much appreciated!

***The most serious thing I see is the OD's. A few are usually okay in a 12 month period, but any more and they can decline your loan.