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When you borrow money to buy a house, the bank needs the property to be immediately marketable and therefore fully operational. Gov't loans require more cosmetic items to be repaired due to the very small - to negative - equity position that they are in the moment the loan closes. This is why conventional loans with 20% down have less stringent "cosmetic" repair requirements.
The act requires lenders to verify the source of any and all large deposits on each financial statement. Most lenders interpret this as meaning any deposit greater than $500. Whether it was a wedding or birthday gift, a rent check, repayment of a loan or any other type of deposit, lenders are now required to ask the homeowner to provide a brief explanation of each deposit, as well as verification of the source. Usually, this means providing a copy of the cancelled check for each deposit.
How do they identify any deposit greater than $500? Do you need to print out detailed checking account records to give them or do they have automatic electronic access to your bank account records once the application is filed? How far back do they need to look?
A paperwork nightmare. How many people can identify exactly where every $500+ deposit came from?
How do they identify any deposit greater than $500? Do you need to print out detailed checking account records to give them or do they have automatic electronic access to your bank account records once the application is filed? How far back do they need to look?
A paperwork nightmare. How many people can identify exactly where every $500+ deposit came from?
Pretty much everyone. Your bank should have an image of the transaction. Now if they are cash deposits...then you might have trouble identifying and trouble with being able to use those funds to close a real estate deal.
My situation is VERY unusual, however, this isn't my first home purchase, my credit is pristine, I had sold a home and had cash from that, so I was putting down half the balance plus paying closing costs, this should be a breeze. Was I wrong!
I went through h*e*l *l trying to get a small mortgage loan, to the point it was affecting me physically. My BP went through the roof, my rage went through the roof (and it takes alot to get me angry), I had aches from stress, my mood was hair trigger, I thought I was gonna "stroke out" a few times, I was thisclose to telling them to "shove it where the sun don't shine." I can understand how someone can "lose it". I provided paperwork I knew wasn't necessary, I went downtown and got a legal paper recorded, which was NOT necessary, they didn't know what they needed and were making things up as they went along, my attorney provided a letter they wanted AT THE TIME, then when he questioned it before he made a special trip to get it signed, they decided they didn't need it after all. The lender ignored me, my agent and the agent's broker for 2 days, no contact whatsoever, when I was in the critical 14 day financing period. The 14 days was exceeded by a week or more.
In the end, I WAS DENIED. I understand why, I was surprised I got pre-approved to begin with. I had found the perfect house, the price was right, the area, size, everything. I wanted to keep some house sale money as a cushion. That is why I started the loan process. I placed an offer, that is another story, and I "won" the house.
I ended up having just enough money, from my former house sale and closing a stagnant retirement account, to pay for the house in cash. This is not a "lucky" break, it is a Miracle.
I received a letter from them, mandatory I guess when one is denied, and the reason was.........Part 1 "applicant withdrew". WTH(eck)??? I never withdrew my application, how can they say that?
I do not wish this nightmare on anyone!
Last edited by Lodestar 77; 09-12-2013 at 07:45 PM..
Reason: Added more information.
My situation is VERY unusual, however, this isn't my first home purchase, my credit is pristine, I had sold a home and had cash from that, so I was putting down half the balance plus paying closing costs, this should be a breeze. Was I wrong!
I went through h*e*l *l trying to get a small mortgage loan, to the point it was affecting me physically. My BP went through the roof, my rage went through the roof (and it takes alot to get me angry), I had aches from stress, my mood was hair trigger, I thought I was gonna "stroke out" a few times, I was thisclose to telling them to "shove it where the sun don't shine." I can understand how someone can "lose it". I provided paperwork I knew wasn't necessary, I went downtown and got a legal paper recorded, which was NOT necessary, they didn't know what they needed and were making things up as they went along, my attorney provided a letter they wanted AT THE TIME, then when he questioned it before he made a special trip to get it signed, they decided they didn't need it after all. The lender ignored me, my agent and the agent's broker for 2 days, no contact whatsoever, when I was in the critical 14 day financing period. The 14 days was exceeded by a week or more.
In the end, I WAS DENIED. I understand why, I was surprised I got pre-approved to begin with. I had found the perfect house, the price was right, the area, size, everything. I wanted to keep some house sale money as a cushion. That is why I started the loan process. I placed an offer, that is another story, and I "won" the house.
I ended up having just enough money, from my former house sale and closing a stagnant retirement account, to pay for the house in cash. This is not a "lucky" break, it is a Miracle.
I received a letter from them, mandatory I guess when one is denied, and the reason was.........Part 1 "applicant withdrew". WTH(eck)??? I never withdrew my application, how can they say that?
I would rather not say because, based on this thread, it is not just this lender that is being a PITA. My realtor had me submit my information to another mortgage broker during this "waiting game", and their underwriters turned me down without going any further. My complaint with the company that denied me is I gave them my full information over the phone, and I was pre-approved at that time. Then during such a stressful time I was totally ignored for 2 full days, excuse was he was busy getting several other end of month closings done. OK, I was on a time schedule as well, if I was going to be denied I wanted time to find other financing. Then the untrue reason for my denial, I still don't get that one.
TimtheGuy,
My current income is not "mine".
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