UPDATED AGAIN Jumping Through hoops for mortgage

amother

Amethyst

Wed, Feb 14 2018, 4:50 pm

Anon bc no one knows yet that we are buying a house IYH. We are under contract. The bank is asking us to provide documentation that I dont think they are entitled to! Most things I agree is fair game. After all, they are loaning me money. A lot of it.

BH, my uncle gave us $10,000. The bank is making me get my uncles bank statement for 30 days showing the withdrawel of funds for that check. I’ve already given them the cancelled check and my bank statement showing that it was deposited, as wel as a signed gift letter from my uncle. Uncle doesnt feel that its the banks business whats on his statement and doesnt want to give it. I totally understand. IYH itll work out.

Please make me feel better and share stories of crazy hoops that your banks made you jump through to get a mortgage! I am 36 and this is my first house.

thunderstorm

Wed, Feb 14 2018, 5:18 pm

I think my MIL had to give her bank statement as well to show that gift she gave us, in addition to the gift letter. This was a few years ago. Are you going through a mortgage broker? They know what the norm is and what's not the norm.
I work with lenders daily because I work in title and they have lots of demands and are very picky , but you need to comply in order to get them to agree to lend. It's just the way it is.

loveit

Wed, Feb 14 2018, 5:49 pm

This is standard procedure since 9/11. They have to follow the paper trail of gifted money to ensure it didn’t come from improper means. I know it’s frustrating, our family members didn’t appreciate giving this info either. Although it our case the gifts came from sales of stock and the cashing in of a CD I think so the paper trail was a bit easier and less invasive. Had it been a straight check they would have asked the same.

Iyh this will all be over soon and you’ll be enjoying your new house!!

amother

Amethyst

Wed, Feb 14 2018, 6:11 pm

Bizzydizzymommy wrote:

Thanks. We arent using a broker, we got a great rate and product with a bank so were going with them. My uncle literally wont give them his statement. He thinks (and I see his point) its none of their business. I dont know what to do.

amother

Wheat

Wed, Feb 14 2018, 6:14 pm

amother wrote:

I work in the mortgage business. It's standard. If he won't give it, you have a big problem.

amother

Turquoise

Wed, Feb 14 2018, 6:36 pm

Sorry, we just went through this. It’s standard Sad

good luck. Maybe there’s someone else who can lend you $10,000, - and provide the documentation - and you can pay them right back with your uncles money?

33055

Wed, Feb 14 2018, 6:54 pm

amother wrote:

Sorry, we just went through this. It’s standard Sad

good luck. Maybe there’s someone else who can lend you $10,000, - and provide the documentation - and you can pay them right back with your uncles money?

OP,

You do realize this is fraudulent? No one ever thinks they will get caught until they do.

Speak to your attorney. This isn't legal advice.

amother

Blue

Wed, Feb 14 2018, 6:59 pm

I am a mortgage broker and almost never had to give bank statements. A gift letter, proof of receipt and cancelled check was always enough. I deal with this all the time so there are definitely banks that are okay without it.

amother

Azure

Thu, Feb 15 2018, 10:18 am

amother wrote:

Agreed. However, since I'm a mortgage broker that does FHA mortgages in addition to conventional mortgages, I will tell you that on FHA this is a standard requirement. It depends on the type of mortgage you're going for, OP. Most retail banks will require a lot more documentation than your local broker who is more familiar with each bank's guidelines. And the right mortgage broker will walk you through the process with a lot more hand holding than a retail bank, so you won't feel so lost.

What the OP's uncle may find helpful, is sending his bank statement directly to the bank. I've handled many loans in which the donor didn't want the recipient to see their statement, but was ok sending it directly to us.

amother

Amethyst

Thu, Feb 15 2018, 10:20 am

amother wrote:

This is a fannie mae loan. My uncle wont send his statement at all.

thunderstorm

Thu, Feb 15 2018, 2:01 pm

amother wrote:

This is a fannie mae loan. My uncle wont send his statement at all.

I would take that other posters advice and use a broker. That's what they are here for. Their goal is to get you a loan as smoothly as possible.

amother

Amethyst

Thu, Feb 15 2018, 2:12 pm

Bizzydizzymommy wrote:

I would take that other posters advice and use a broker. That's what they are here for. Their goal is to get you a loan as smoothly as possible.

I actually initially was using a broker, and the best he was able to do was give me an FHA with PMI and really high interest. For some reason he couldn’t approve me for mortgage with anything better. This bank has a mortgage product that has a normal interest-rate, no PMI, and a 3% down payment. We’re actually pretty far along the loan process and it’s just really really frustrating. We’re supposed to close soon! I can’t exactly stop where I am in the process and start again with someone else.

lfab

Thu, Feb 15 2018, 2:23 pm

amother wrote:

I'll admit that I don't know much about mortgages, but I've never heard of being able to put down so little without having a PMI. To me it sounds too good to be true. The benefit of using a broker would be that presumably they would have been able to let you know if this requiring nevus you were this fast along in the process. Then you could have tried to find someone else, whose willing to give their statements, to lend you there money. I know this is not what you wanted to heat but unfortunately, if he won't give you the statement, I'm not sure there's much you can do.

amother

Wheat

Thu, Feb 15 2018, 3:36 pm

amother wrote:

I replied up thread I work in a mortgage bank. We are direct lenders. I have had many many times where clients were about to close with a retail bank and last minute wasn't able to and I was able to save them.
Personally as someone in the field I wouldn't ever recommend anyone to a retail bank. They only have their guidelines. I have guidelines from many many banks and therefore can get more closed. You also don't get that hand holding in a bank. I hope it works out but if it doesn't and you need go run last minute to.someone else I am honestly ttly not surprised.

amother

Amethyst

Thu, Feb 15 2018, 5:15 pm

amother wrote:

Op please let us know what ends up happening. I am also intrigued by the 3% down, no PMI. Sounds too good to be true.

Its a loan product called Fannie Mae Home Ready. https://www.fanniemae.com/sing.....ready

amother

Turquoise

Thu, Feb 15 2018, 5:32 pm

Looks good!
Wish I knew about this; just got a mortgage and put 20% down. With closing costs, I needed close to $100,000.!!
Ps. I don’t see where it says no pmi. It just says once you have 20% equity in the house, you can have that removed.

amother

Amethyst

Thu, Feb 15 2018, 5:35 pm

amother wrote:

The loan officer who is working with me explained the whole thing to me. Its no pmi. She said this is the only bank that has this specific program.