My mortgage process with Quicken (edited)

[Anonymous]

In my loan application package, there are three lines for asset verification needed.

One states we need $900. The next states $23,000. The next $24,000.

The estimated cash to close is $900 (seller is picking up closing costs and I've already covered the down payment). Why are they asking for so much cash in reserve? The house is $160,000, FHA loan. I've told the LO from the start that I have $10,000 in reserve which he said was more than enough, but these documents are asking for time and a half that! He left me a voicemail saying not to worry about it as many things get added in "just in case", but I wasn't able to speak to him tonight to find out what that "case" was.

We have plenty of time before closing (50 days) so I'd like to understand sooner rather than later. 

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New problem. While reading through the mortgage application, the LO added several thousand dollars monthly to my income. I'm not 100% sure where he got the numbers from. I sent him an e-mail to figure it out. It shouldn't affect my ability to get the house, My present "front end" ratio is 6% and my proposed "back end" ratio is 24% (from gross monthly income). I'm still panicking over it.

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Edit: I changed the title, as I'm sure I'll have more questions and want to keep it in one thread.

[StartingOver10]

It is a problem if the income on the mortgage application is different from your actual income. This is a major problem as it is mortgage fraud.So whatever you do, don't sign the mortgage application with errors on it as you are responsible for the content of the application, even if you didn't fill it out and the LO filled it out for you.

If I were in your shoes, I would make application with another lender.  No LO can verbally over ride the lender guidelines.  If you don't have the reserves required by Quicken (these are not FHA requirements), then find a lender that doesn't have those large reserve requirements. I am serious. 

EDIT:  Quicken is a perfect example of the lender model that has application takers on the front end rather than true loan officers that have been trained in the mortgage business. Your file is not reviewed by anyone that has the knowledge until it hits underwriting.  By then you have already paid for an appraisal and inspection and are well into the mortgage process.  You have a time limit in your contract, make sure to find another lender right away and at a minimum run your apps simultaneously. But, given your post, it is prudent for you to change lenders to someone that doesn't have those large reserve requirements.

[Anonymous]

I haven't signed it. I'm waiting to hear back from him. His response is really going to decide whether or not I stick with this company. I initially chose them because they offered lower closing costs than the other prospective lender and I found more good than bad reviews them online.

[Anonymous]

I dumped Quicken and went with a local lender. I lost all confidence in my loan officer with Quicken and couldn't imagine continuing to do business with the company after that.

[cartwrna]

^ great choice! I went local credit union as well! The ease of being able to call/text my mortgage officer at any point or drop by her office is great.

[Anonymous]

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@Anonymous wrote:

In my loan application package, there are three lines for asset verification needed.

One states we need $900. The next states $23,000. The next $24,000.

The estimated cash to close is $900 (seller is picking up closing costs and I've already covered the down payment). Why are they asking for so much cash in reserve? The house is $160,000, FHA loan. I've told the LO from the start that I have $10,000 in reserve which he said was more than enough, but these documents are asking for time and a half that! He left me a voicemail saying not to worry about it as many things get added in "just in case", but I wasn't able to speak to him tonight to find out what that "case" was.

We have plenty of time before closing (50 days) so I'd like to understand sooner rather than later. 

---------

New problem. While reading through the mortgage application, the LO added several thousand dollars monthly to my income. I'm not 100% sure where he got the numbers from. I sent him an e-mail to figure it out. It shouldn't affect my ability to get the house, My present "front end" ratio is 6% and my proposed "back end" ratio is 24% (from gross monthly income). I'm still panicking over it.

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Edit: I changed the title, as I'm sure I'll have more questions and want to keep it in one thread.

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@Stop it if you are uncomfortable.  That is unacceptable and it looks like they want to close this deal quickly. As @Anonymous said, that will be fraud. 

[StartingOver10]

That is the right thing to do OP. Two thumbs up.

[Anonymous]

I requested the LO withdraw my application and the response is less than professional. My experience with this company was fantastic until it came time for the actual application, then it all went to crap. Very disappointing. 

[StartingOver10]

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@Anonymous wrote:

I requested the LO withdraw my application and the response is less than professional. My experience with this company was fantastic until it came time for the actual application, then it all went to crap. Very disappointing. 

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At least you found out now and not further into the financing process.  Your experience is typical for Quicken Loans from what I have seen.  They like to get you to apply and they take the non-refundable appraisal fee right up front ($500+ from what I have seen).  

Different lenders have different loan procedures. Personally I find it very uncomfortable to have an untrained application taker at the front end.  That is why I always suggest going with an experienced loan officer, no matter where they are located. It makes a real difference in the entire process.  JMO. 

Hopefully you have found another lender you can work with for your new home financing.

[Anonymous]

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@StartingOver10 wrote:

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@Anonymous wrote:

I requested the LO withdraw my application and the response is less than professional. My experience with this company was fantastic until it came time for the actual application, then it all went to crap. Very disappointing. 

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At least you found out now and not further into the financing process.  Your experience is typical for Quicken Loans from what I have seen.  They like to get you to apply and they take the non-refundable appraisal fee right up front ($500+ from what I have seen).  

Different lenders have different loan procedures. Personally I find it very uncomfortable to have an untrained application taker at the front end.  That is why I always suggest going with an experienced loan officer, no matter where they are located. It makes a real difference in the entire process.  JMO. 

Hopefully you have found another lender you can work with for your new home financing.

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Yes, I did! I went with a local bank. As you said, it's fortunate I found out before I was financially committed to Quicken. The processor I was working with there was extremely unprofessional about withdrawing my application, to say the least. The LO I'm now working with at a local bank is extremely knowledgable and experienced. She made sure I had produced every piece of documentation she could ever see underwriting requesting. 

An update on the journey:

Inspection came back with a few minor issues (expected).

FHA appraisal came back on Monday clean as a whistle.

My file was sent to underwriting Monday afternoon. 

The LO said to expect a decision from underwriting by tomorrow at the latest, but I'm not holding my breath for a decision before Monday/Tuesday. Still waiting for a bump in the road, but hoping it doesn't show up.