SESocialMedia

Yep - We'll Take a Thumbprint of Your Second Child, Too

Just give us a copy of everything!If you purchased a home in 2005 and find yourself in the enviable position of purchasing again now... you might be surprised by some of the ways the mortgage process has changed.

Oh Sure... you've heard that it's hard to get a mortgage, but you've got 800 credit scores, a ten year job, cash in the bank (2.5 kids AND a dog!)!  You might think the stories about a tough time getting a mortgage is all about those "other" poor souls.

These days... it doesn't matter how much money you make, what a great deal you got on the house - or if you have 2.5 kids... we want to know everything, and we have to PROVE/Document everything.

AND... just because your loan is approved does NOT mean that we are through asking you for more stuff!  Once a loan is approved by an underwriter, it OFTEN (luck of the draw) goes through a rigorous quality control audit.  The audit can require (in addition to any details the underwriter requested) a full tax return, or an updated credit suppliment, or an additional bank statement.

To understand this a little better, consider the Privacy Acts, and how we now use the Internet to store varying data.  You might say on a loan application that your telephone number is 222.334.4555... and that MIGHT be the right number.  However, when the QC Auditor goes to verify that telephone number as yours (usually online through a service like Reverse Lookup) - they find that it's your CELL number, and therefore not listed.

OR... let's say you applied for your mortgage on January 5th, and provided us with 2 months of bank statements that "drop" on the 20th of each month.  We may have to get a copy of your JANUARY 20th bank statement, even if we have enough money verified to close!

So here's our advice, if you are applying for a mortgage in North Carolina (some states are different):

  • Assume we need everything.  All of your tax returns, all of your bank statements, your paystubs, divorce decrees, IRA account statements... all of it.
  • Assume we need any updated documents you receive after you apply for a mortgage.  If the loan officer says you are approved, don't throw those documents away - you probably have another opportunity for us to ask you for it again!
  • Don't pack financial documents in a box on the moving van unless the loan officer tells you to... just in case. This is Murphy's Law in full force!
Why did we get to this?  Well, the fine State of North Carolina requires me to verify that you have the "ability" to pay the loan back.  It's not the underwriter who is trying to be so difficult, it's not the QC people, and it's not me.  It is the law!

If you are self-employed, and considering a home purchase in North Carolina - please read this!

Comment balloon 47 commentsEleanor Thorne • February 02 2010 03:26PM

Comments

I have a lender that is insisting on my clients 2009 tax return.  Well guess what, he doesn't do his taxes until midnight on April 14 usually.  The key is usually.  He is jumping through the hoops becuase he loves the house.  If we all keep thinking the way it was is better then the way it is we would all be riding ponies up to the bank.

Posted by Diane Osowiecki, Greater Nashville Real Estate (Diane O and Friends - Benchmark Realty) over 7 years ago

Yeee Ha!  Git along little Pony!  I know exactly what you mean!  It's tough!

Posted by Eleanor Thorne, Equity Resources 919-649-5058 (Equity Resources) over 7 years ago

Eleanor, I just had my first closing with the new HUD this morning. What a nightmare. We were to close last week. Yada Yada. Now I'm busy gathering my own information to go through the same process. I am so not looking forward to this. :(

Posted by Connie Harvey, Realtor - Nashville TN Real Estate (Pilkerton Realtors) over 7 years ago

Hey, we're having REBar Camp here in Nashville. Why don't you and Pam and a bunch of you do a road trip!:)

Posted by Connie Harvey, Realtor - Nashville TN Real Estate (Pilkerton Realtors) over 7 years ago

Thanks Eleanor for taking the time to write this out.  It will be a great link to send to our clients as they look at us and asking what's this all about??  I love the image you chose too.  Must be how you're feeling these days!

Posted by Lee & Pamela St. Peter, Making Connections to Success in Real Estate (Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522) over 7 years ago

Eleanor: Love the pic!!  Change has certainly happened in both our businesses.

This is a great blog you have written about the minutiae required for a mortgage today. 

If you are self - employed, I would guess even more complicated!! (It wasn't easy before)

Reblogging & Flagging you for a FEATURE - well deserved,  IMHO  - Bonnie

 

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) over 7 years ago

Excellent advice for home buyers, regardless of the state where they are purchasing.

Posted by Kay Van Kampen, Realtor®, Springfield Mo Real Estate (RE/MAX Broker, RE/MAX Solutions) over 7 years ago

Eleanor - Great blog!  You have inspired me to steal your..er...I mean...ahem...use your idea for one of my blogs!  Thanks

Posted by Nevin Williams, Raleigh Mortgage Pro (Sierra Pacific Mortgage Raleigh) over 7 years ago

And they just keep making things easier and easier- don't they? lol.  I've had several clients tell me that same story in the last few months, they kept asking for the same info over and over.  Guess it's happening to everyone.

Thanks for the info.

Posted by Linda Jandura, Realtor, North Carolina Buyer & Seller Specialist (Raleigh Cary Realty) over 7 years ago

Patience and a copy of everything is the new normal.

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) over 7 years ago

Eleanor,

You write in a lucid, compelling way.  And where do you come up with your funny photos?  I saw the photo and just had to stay to read.  (That's the idea, huh?)  LOL

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 7 years ago

Hey thanks guys!  I was at a meeting with some agents a couple of weeks ago - and they wanted a place they could refer their prospects to... it occurred to me that it should be an AR post!

Posted by Eleanor Thorne, Equity Resources 919-649-5058 (Equity Resources) over 7 years ago

When I read your title, I just knew you had to be talking about getting a loan.  It made me smile, but it was a rueful one because this is all too true.

Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) over 7 years ago

Eleanor - This is something we've been discussing at our staff meetings for awhile.  I appreciate the info and will look forward to educating buyers on the changes that have taken place that now affect all of us.  Best wishes for a prosperous 2010.

Posted by Lynn Johnson, Owatonna, MN Real Estate (Coldwell Banker Home Connection) over 7 years ago

Oh I love your graphic.  It certainly makes the point along with your well written post.  It seems things go from one extreme to the other making the process harder for everyone involved.

Sue of Robin and Sue

Posted by Robin Dampier REALTOR®, Hendersonville & Western NC Real Estate Source (Coldwell Banker King) over 7 years ago

Things are changing so ever fast. Even the lenders are having a hard time keeping up.

Posted by Roland Woodworth, Q Realty - Power In Real Estate (Q Realty) over 7 years ago

Doesn't really matter what state you're in, the process is nothing like it was in 05'. I guess that's a good thing.

Posted by Jeremy Lehman, Jeremy Lehman (The Boutique Real Estate Group) over 7 years ago

Take the thumbprint of the second born?  ONLY the thumbprint.  I though they were taking the second child!  My mistake.  Thanks for clearing that up ;-)

Posted by Carla Muss-Jacobs, Principal Broker (503) 810-7192, Buyer Focused ~ Buyer Results (BuyersAgentPortland.com | Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% of the Time) over 7 years ago

Is there no happy medium? The lenders go from making loans to anybody who can sign their name to loaning only to the best of the best. Is the dream of home ownership gone for most Americans?

Posted by Tom Bailey (Margaret Rudd & Associates Inc.) over 7 years ago

Things went from if someone could breath they could get a loan to now, documentation and more documentation -- it is interesting for sure.

Posted by Bob & Carolin Benjamin, East Phoenix Arizona Homes (Benjamin Realty LLC) over 7 years ago

I truly understand it is my 3rd downturn and when money get tightened it is as if the banks do not want to loan.  You know they don't.  But it is better and it will keep getting better as time goes on.

Posted by Elite Home Sales Team, A Tenacious and Skilled Real Estate Team (Elite Home Sales Team OC) over 7 years ago

Great reminder to all to be very organized at the time of closing.  I expecially like the reminder to not pack these important documents.

Posted by Judy Greenberg, Coldwell Banker - Buffalo Grove - Long Grove Homes (Coldwell Banker Long Grove) over 7 years ago

Require all the documents and then don't give the loan... but charge to go through the nightmare!

Posted by Mark VanBuskirk, PA REALTOR Specializing in Carbon & Monroe County (Cassidon Realty ) over 7 years ago

It just seems like the torture continues.  LOVE the picture of being burried under paper!

Posted by Ruthmarie Hicks (Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605) over 7 years ago
Great article and so true.
Posted by Trisha P Realty Group, "Holding the Keys to Your Dream Home" (Realty Executives) over 7 years ago

Had one last month were a client didn't list all properties owned. Missed one that had no mortgage. UW wanted to turn down for fraud. UGH!

Posted by Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv (REISA - 317-663-4173) over 7 years ago

WOW!  I got a Star!  That's so cool!

Tony - there are so many behind the scenes audit checks done now - I think that's why Underwriting fees are so high!  They send the file through like 3 or 4 checks that have to match!!

Posted by Eleanor Thorne, Equity Resources 919-649-5058 (Equity Resources) over 7 years ago

You did my friend and on a well deserved post!   Well done Eleanor!

Posted by Lee & Pamela St. Peter, Making Connections to Success in Real Estate (Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522) over 7 years ago

Things have certainly come full circle from the "easy" days of credit. This is definitely a sign of the times.

 

Posted by Claudette Millette, Buyer, Broker - Metrowest Mass (The Buyers' Counsel) over 7 years ago

Eleanor, great post, I'll re blog it if you don't mind, we really need to get out in front of this stuff. Just as well I have three months to sell Lisa and Eugene's house it looks like we'll need it.

Posted by David O'Doherty, Clayton NC Homes, Raleigh, NC (Raleigh Realty Inc) over 7 years ago

Eleanor, great post, I'll re blog it if you don't mind, we really need to get out in front of this stuff. Just as well I have three months to sell Lisa and Eugene's house it looks like we'll need it.

Posted by David O'Doherty, Clayton NC Homes, Raleigh, NC (Raleigh Realty Inc) over 7 years ago

Judd ReynoldsWe just bought a home in November. I didn't find it that much different than in the past. Lenders have to "make sure" you are who you are, and have the ability to repay. Unfortunately, this was not the case for several recent years. One change which did surprise me was the appraisal. They used to be 10-12 pages. This time it was 27 pages (no kidding)! The appraiser just like the lender has to "document" and look up more exteraneous data, that really doesn't change the result at all.

Posted by Judd Reynolds, Savannah, GA (Exit Team Realty) over 7 years ago

Thank you for getting this out to us today.  It's appreciated!

Patricia/Seacoast NH

Posted by Patricia Aulson, Realtor - Portsmouth NH Homes-Hampton NH Homes (BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate ) over 7 years ago

PS.....Luv  the picture!  Too funny.

Posted by Patricia Aulson, Realtor - Portsmouth NH Homes-Hampton NH Homes (BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate ) over 7 years ago

HI Eleanor -- Your post illustrates so well why it is very important to find an exception realtor.

Posted by Chris Olsen, Broker Owner Cleveland Ohio Real Estate (Olsen Ziegler Realty) over 7 years ago
Great advise. When We refinance our mortgage last year, I was asked to run a copy of my most current paystub to the office before they fund the loan. I was shocked that it had became so strict.
Posted by Mike Yeo (3:16 team REALTY) over 7 years ago

Great post & it's the same here in Georgia.  My husband is an LO for a Broker and I get to see the drama unfold first hand.  It is IMPERATIVE for buyers & sellers to avail themselves of the services of educated, informed, competent professionals when employing a REALTOR or a Loan Officer. 

Posted by Jenna Dixon, Assoc Broker - Let's Talk Cobb County Real Estate (DRA Homes | Cobb County Real Estate ) over 7 years ago

Still laughing about the pic, mostly because it is so true. Thanks for the post.

Posted by James Lyon (Vista Pacific Realty) over 7 years ago

Great post!  Although it is going to be tougher, I believe we will adjust by getting more organized and making sure our clients have all the proper documentation as soon as possible!  Congrats on the Feature!!

Posted by April Stephens, Broker/Realtor - Johnston & Wake County (RE/MAX One Realty) over 7 years ago

Wow, that was a lot of words to discuss this problem; but I did make it through most, and you vent in a particularly entertaining way about what has become a very frustrating process.

Posted by Aaron Vaughn | Builder | Investor, If the deal makes sense, the cash will follow. (Conifer Homes) over 7 years ago

Thing definitely are different now, aren't they?!?!

Posted by Todd & Devona Garrigus, Broker / REALTORS® (Garrigus Real Estate) over 7 years ago

Eleanor, just love that picture.  It's a beauty!

Posted by Bob Hirsch (The AVD Group) over 7 years ago

You make a case for digitizng your financial records, and for not having children.

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) over 7 years ago

Eleanor!  You got that right!

Posted by Ed Gillespie over 7 years ago

The pendulum has swung the other way. You used to get a loan for having a pulse, which was stupid and caused massive problems. Now they are too cautious, and it is hindering meaningful recovery because well qualified people can't get out of underwriting. 

Posted by J. Philip Faranda, Broker-Owner (J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY) over 7 years ago

Eleanor: Congrats. on your featured post. For a minute there I thought you were going to say your firstborn! Yes, we're all a little frustrated right now. But what can we do. We're dedicated and know that this too shall pass. I wish you well this year!

Posted by Paul McFadden, Pest Control, Seattle, WA. (Paratex) over 7 years ago

Hey congrates for your post and I agree with Mr. Paul you were bit fraustrated .....

any way keep going.

reverse cell phone lookup
Posted by Kim Jones over 7 years ago

Participate