How tight are lending standards getting for a home mortgage?
July 10th, 2009
Posted by: admin
We are in escrow. We have submitted six weeks worth of payroll, four months of bank statements and now they are asking for 12 months of proof we paid rent on time. Every time we talk with our mortgage broker we are asked for more proof of funds, credit etc. It is really making us frantic! What will they ask for next?
We are first time home buyers and have no idea if all the documentation is due to the housing market collapse or is it just normal?
Wow Grey….that is just too much info for a mortgage company! Amazing!
We are first time home buyers and have no idea if all the documentation is due to the housing market collapse or is it just normal?
Wow Grey….that is just too much info for a mortgage company! Amazing!
And Teri….Our credit score is above 750 and we really thought this would help pave the way and make it easy. But it would seem that even good credit is not everything!
I’d say so too……….
Thanks Candi…After the holiday I think we will go in for a meeting just to get things in perspective! Such as what will come up and what may come up! In the end I want to be prepared and hate having such short notice on getting everything together.
OC mom your scaring me now! I’m also in Cali and do not trust this market at all! If this escrow falls out, we could be screwed by the 18% rise in home buying!
By: jd
Tags: Credit Score, Mortgage Broker, Payroll
July 11th, 2009 at 09:14
documents are normal, the failure is that your Realtor and your loan officer did not prep you up front for what might be needed. They are fulling establishing that you are creditworthy.
This is a by product of the recent issues with bad mortgages in 2005-2007. Everyone wants paper, paper, paper proof.
in 1970, when my mom applied for a loan as a divorced mom, they asked for proof that she had undergone a hysterectomy. They where afraid that she might get knocked up with a baby and thereby default on the mortgage.
She had to provide a copy of the hospital bill when they removed her uterus!
July 14th, 2009 at 18:40
We went through a lot in 2005 and it was three incomes involved. I would ask the lender how much more proof is needed. How is you credit score? That usually needs to be good - I would ask do you need to seek another bank or credit union for a mortgage. That may get the ball rolling. I wish you all the luck and I hope you get a beautiful home. Good Luck.
July 17th, 2009 at 22:51
I’d say so…
July 20th, 2009 at 11:11
I know that it seems frustrating but look towards the final picture….owning your very own first home. You can also try asking them what else you would need to give to them or sit down and think together of what has not been requested so that you can put it in a folder to give if it is later requested. Hope this helps and good luck.
July 21st, 2009 at 11:55
okay we just bought a home. my husband has worked at his job for 15 years. makes over $100,000/ year, our debt to income ratio is 25/75. credit scores are 756 and 770. we had to go through 3 different lenders to finally get approved! ridiculous!!!
July 23rd, 2009 at 17:57
Those are all standard requirements but your mortgage broker should have told you that up front not ask for it piece by piece. I’m sorry for your frustration.