topic Re: Underwriter Requires Rental LOE in Mortgage Loans

Underwriter Requires Rental LOE

Anonymous — Tue, 05 Jan 2021 21:39:04 GMT

Underwriter has made me confirm the rent amount of my previous address. I stated I was one of 3 tenants, lease expired, and we each paid $535 to cover the entire rent total($1600). Today they sent me back a letter that only included what I stated and was told to sign. The title was "Rental Explanation Letter". I'm assuming were done with that. Or should I expect more?

I'm really hoping thats it because our close date is 6 days away and don't want conditions about a location I haven't lived in for months (lease is done), where our payment history was good and haven't paid for since September holding up this deal.

I was told since my scores were so high they problably wouldn't even ask for rent info. The loan is an FHA don't know if thats why. Regardless its been months since I lived there and the payment history was perfect bar paying the rent one day late in April (just forgot).

Re: Underwriter Requires Rental LOE

JVille — Tue, 05 Jan 2021 22:26:39 GMT

Somebody is checking off boxes in UW. Rents previously paid used to be a big deal when looking for "Payment Shock" and a borrower who may already have had issues paying bills (when looking a payment history, lates pays and Over drafts in bank stmts).
I'm sure in your case someone was just trying to cover all the bases.
Rest easy!

Re: Underwriter Requires Rental LOE

Anonymous — Tue, 05 Jan 2021 22:58:32 GMT

@JVille wrote:
Somebody is checking off boxes in UW. Rents previously paid used to be a big deal when looking for "Payment Shock" and a borrower who may already have had issues paying bills (when looking a payment history, lates pays and Over drafts in bank stmts).
I'm sure in your case someone was just trying to cover all the bases.
Rest easy!

Reast easy, haha I'm trying. My wife just told me the same though and I am calm now. You think they'd care about a one day late?

Re: Underwriter Requires Rental LOE

JVille — Tue, 05 Jan 2021 23:08:59 GMT

No a day late is not even in their thinking nor is a week late. Go have a glass of wine!

Re: Underwriter Requires Rental LOE

Anonymous — Thu, 07 Jan 2021 13:20:29 GMT

@JVille I know what it is but when does "Payment Shock" become a concern to underwriters? My wife has never paid rent or a mortage. She doesn't ever use her credit much she's pretty conservative, only paying off cc's right away in the past and paying off her student loans. They know the most I've ever paid for in the past is rent of $ 535, my monthly car payment and other credit card minimum payments which all equals to about $ 1,200 a month (rent + car + cc's). The mortgage will be around $ 2,000.

Re: Underwriter Requires Rental LOE

JVille — Sun, 10 Jan 2021 20:03:48 GMT

Hoping you got this issue resolved and are set to close next week!

Re: Underwriter Requires Rental LOE

Anonymous — Sun, 10 Jan 2021 23:44:48 GMT

@JVille Yes I'm not worried about payment shock anymore lol. I was stupid to worry really. We have great scores, great credit history and no income issues so theres no way it would be an issue for us. My LO confirmed it for me as well when I asked him how likely it was that the underwriter would come back with more conditions for us, he said they won't, that we should be good and its just the UW checking off boxes to make sure they meet FHA guidlines (which you confirmed, they have to confirm school attendance and graduating date for my wifes less than 2 year work history and they have to document any rent paid at my previous address since I've only been living rent free less than 24 months). Thanks for pointing out how ridiculous I've been. You and my LO helped out loads recently.

On the downside, my close date got pushed back to the 13th because of issues on the lenders end (not meeting deadlines to submit paperwork and my poor processor who has had issues working from home due to mother nature which further delayed things).

Re: Underwriter Requires Rental LOE

JVille — Sun, 10 Jan 2021 23:51:56 GMT

Glad you are calmed down! Ready easy...

Re: Underwriter Requires Rental LOE

sxa001 — Mon, 11 Jan 2021 05:05:14 GMT

Sorry to hear things pushed. That seems pretty common, I wasn't afraid my closing would push as the title company was taking a long time to wrap things up but my lender put pressure on them and we closed and funded on time. It will feel awesome when you get those keys. My advice is find some other things.to occupy your mind with for the next couple of days. Maybe a good time to binge watch a new show or read a good book.