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Daycare hurting DTI ( should I keep going) VA related

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Anonymous
Not applicable

Daycare hurting DTI ( should I keep going) VA related

My loan officer called me today stating the underwriter wanted to deny my loan mostly due to me paying $680 in childcare expenses. My daughter is 4. She just started preschool. I have her attending a private school. My daughter receives survivor benefits. When I was signing my disclosures one of the forms asked about childcare expenses. Did I answer the question correctly? He was so pissed off saying he knew nothing about this but he never asked me during the pre approval process.

My loan is approved with conditions. I have to show 2700 dollars worth of reserves. So I sent in a 401 k account summary and will send in an updated bank statement. Should I continue? Or maybe just wait until I get more reserves and use a loan program that doesn't count childcare expenses.
Message 1 of 8
7 REPLIES 7
StartingOver10
Moderator Emerita

Re: Daycare hurting DTI ( should I keep going) VA related


@Anonymous wrote:
My loan officer called me today stating the underwriter wanted to deny my loan mostly due to me paying $680 in childcare expenses. My daughter is 4. She just started preschool. I have her attending a private school. My daughter receives survivor benefits. When I was signing my disclosures one of the forms asked about childcare expenses. Did I answer the question correctly? He was so pissed off saying he knew nothing about this but he never asked me during the pre approval process.

My loan is approved with conditions. I have to show 2700 dollars worth of reserves. So I sent in a 401 k account summary and will send in an updated bank statement. Should I continue? Or maybe just wait until I get more reserves and use a loan program that doesn't count childcare expenses.

They are all going to count child care expenses.  Did you disclose the amount of her survior benefits too to offset the childcare expenses?  

 

You can not fail to disclose expenses to the LO but I really don't understand why he was PO'ed. It is one of the questions he should have asked when you were filling out the loan application. Did you discuss your app with him at all or just fill in the blanks online?

 

I ask this question because IMO and IME a good LO would ask you about these things and not just rely on you being able to anticipate what the u/w needs to see. That is part of the LO's job.  You are the consumer and presumably you don't fill out too many applications as complex as a mortgage app on a regular basis so it is up to the LO to guide you appropriately.

Message 2 of 8
Anonymous
Not applicable

Re: Daycare hurting DTI ( should I keep going) VA related

He did not go over the application with me. I filled it out. He pulled my credit and I sent in the requested documentation. He has been on vacation. So his back up sent out the disclosure forms and I told informed them of the childcare expenses. I included her income as part of the approval.

Maybe I'm in my feelings because he emailed my realtor and the sellers realtor saying it was probably going to get kicked back (denied). So the sellers realtor is flustered. He emailed them at 11 am. He then calls me saying they can get it approved with 2700 in reserves.

I was told it was approved with conditions from my realtor. He emailed them later saying that. I know the journey is not going to be easy. However his rudeness and lack of communication is upsetting me.
Message 3 of 8
Anonymous
Not applicable

Re: Daycare hurting DTI ( should I keep going) VA related

I just wanted to add. I was never asked by him or on the loan application about day care expenses because if I would have been. I would have disclosed it like I did on the VA childcare form.
Message 4 of 8
DallasLoanGuy
Super Contributor

Re: Daycare hurting DTI ( should I keep going) VA related

were the survivor benefits added to your income?

 

Retired Lender
Message 5 of 8
Anonymous
Not applicable

Re: Daycare hurting DTI ( should I keep going) VA related

Yes they were?
Message 6 of 8
Anonymous
Not applicable

Re: Daycare hurting DTI ( should I keep going) VA related

Sorry didn't mean to add a question mark they were included in my income. I filled out the loan application and he only asked me for w2s,tax returns, pay stubs, her social security award letter and my VA award letter. I'm pretty sure childcare expenses where not a question on the application. I was only asked when I filled out the disclosure forms.
Message 7 of 8
DallasLoanGuy
Super Contributor

Re: Daycare hurting DTI ( should I keep going) VA related

there is a spot on the application for child care expenses. 

it isnt highlighted very well.... that is why i go over applications with my borrowers.... and ask that question.

 

sorry.

 

 

Retired Lender
Message 8 of 8
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