Mortgage loan

[Anonymous]

I know everyone says buying a house is an emotional rollercoaster but sheesh! So long story short I made it all the way to closing disclosure but I'm told I still dont have the clear to close?? This is my first time buying a home and my landlord flat out told the UW she wouldn't provide rent verification. I've sent over my bank statements per their request because I always paid cash (lesson learned, I know my landlord and didnt think this would be an issue, shouldn't have assumed). Any who, some months I way over paid if possible and other months less and/or we did work on the house to have taken off the rent. I've received calls from the insurance companies (homeowners & flood) saying the bank requested the final paperwork but my LO is saying still no clear to close?? My closing date is supposed to be Tuesday.

Can someone help me understand please? I'm looking for piece of mind or if I need to chalk it up and start looking for another rental. TIA!

[JVille]

Being able to pay your prior housing expense is a big deal. The fact that 1) your landlord refuses to verify and 2) you paid cash and in varying amounts is a HUGE red flag of “possible” inability to pay and financial instability.
Yes this is a real problem and depending on Lender Overlays or Program specific rules it can potentially cause your loan to be declined.

Do not ever pay rent in cash in the future. Always have a personal check as a paper trail in case you run into a (Jerk) oh I mean landlord who refuses to verify. Sorry you find yourself in this position and hope it works out.

[Anonymous]

Thanks for the info and yes I've learned my lesson from this and I feel like unfortunately it's going to be a big one to learn 😫.

Just curious though, why would I get to closing disclosure and calls from the insurance companies if in the end they're most likely going to tell me denied? Seems like an awful lot of work right before the close date to go through if ultimately they're going to deny me. I'm stressed.

[JVille]

Depending on the strength of the rest of your file you may end up approved. Not all Borrowers are created equal. So unless it’s required for the loan you are getting and you are a strong borrower in every other respect this may not kill your loan. Clean file with strong credit, employment and DTI you may just get approved. But if your file has been a squeaker, rocky Credit, marginal file then this could be the final straw.

As to the other activity the people working in your file want to be prepared to proceed with closing if everything else works out. You basically have different dept working on being prepared to close this deal and not get caught playing catch up.
Good luck I hope it all works out for you.

[Anonymous]

Thank you for the info, I really appreciate it!

[CreditInspired]

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@Anonymous wrote:
I know everyone says buying a house is an emotional rollercoaster but sheesh! So long story short I made it all the way to closing disclosure but I'm told I still dont have the clear to close?? This is my first time buying a home and my landlord flat out told the UW she wouldn't provide rent verification. I've sent over my bank statements per their request because I always paid cash (lesson learned, I know my landlord and didnt think this would be an issue, shouldn't have assumed). Any who, some months I way over paid if possible and other months less and/or we did work on the house to have taken off the rent. I've received calls from the insurance companies (homeowners & flood) saying the bank requested the final paperwork but my LO is saying still no clear to close?? My closing date is supposed to be Tuesday.

Can someone help me understand please? I'm looking for piece of mind or if I need to chalk it up and start looking for another rental. TIA!

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Hi and welcome to the forum

In this case, it may be a good sign that the landlord won’t provide verification, especially if some months you weren’t paying the amount that was due. The months you overpaid kind of sounds like catchup. And work you did on the house to reduce rent payment is really not paying the agreed upon monthly rent. Did you have a lease?

From your own words, it sounds like you had an animus relationship. A few questions: how long were you a tenant, why were you paying cash (did a rent check bounce?), did landlord ever threaten eviction for nonpayment of rent?

I’m not asking these questions to be nosy but just trying to figure out what the underlying reason is for landlord not wanting to verify rent. If he/she is going to give a very negative view of your rental history, IMHO, it may be a godsend it’s not in writing.

As jville said, if everything else on your credit profile is strong and stable, there may be a possibility that the rent verification can be overlooked. 

[Anonymous]

We've been here for 5yrs next month and currently on a month to month because the lease was only for one year. I've known the LL for a very long time and she asked for cash since the start, I didn't think anything of I guess because I know her.

Well, at this point the with rollercoaster it's been, if it's meant to be it'll be is how I'm trying to look at it.

Thanks for the info and advice!