Posted on: 08th May, 2009 06:21 am
My husband and I are currently in escrow on a house but having a bit of trouble getting a loan. We are working with a mortgage broker and he recently had my husbands employer fill out a VOE form and we are now wating to hear back from the lender. My Husbands credit score is in the 750's, we have no debt and a substantial downpayment (35%). The problem we are having which is requiring the VOE is my husband makes most of his wage in tips and his w2 does not reflect this. What are the chances of securing a loan with a VOE in this situation?
wouldn't the employer have knowledge of the tip income (reported tip income) that your husband has? or is it that you're trying to use cash tips that do not get reported to the irs? that's not something a lender will be able to take into account. if you cannot document portions of your income, it won't be used for qualifying purposes.
the voe could be your undoing, i think.
the voe could be your undoing, i think.
well his employer filled it out for him so I am assuming they had some record of it. we were ready to just say forget it and stay where we are for a while longer but our broker seemed to think the voe could possibly work. we are not holding our breath though.
well that's a good idea thomas, because if you had to hold your breath waiting for a mortgage company to get back to you, i'm afraid it wouldn't matter any more by the time they responded.
umm, okay? I just meant that we aren't having high hopes about getting the loan. its been weeks of back and forth and has been emotionally draining...but thank you for the feedback.
sorry - just trying to make light of the situation.
obviously you know this process is painstakingly slow.
obviously you know this process is painstakingly slow.
thats okay. so it *is* normal for this process to be really slow?? I was taking that as a bad sign. thanks again for the advice.
there's no such thing as "normal" anymore thomas. with the ever-changing guidelines and all the new programs that have come out, plus all the bank-owned and short-sale on top of the normal, every-day deals, there's a delay on virtually every deal that comes in.
also, the paperwork involved has become far more onerous - for example, the voe that might not have been needed in the past.
so, yes, slow process is becoming the norm for just about everyone.
also, the paperwork involved has become far more onerous - for example, the voe that might not have been needed in the past.
so, yes, slow process is becoming the norm for just about everyone.
Thats okay. So it is normal for this to take forever?? It seems like a big waiting game, from the time you put the offer in to getting the financing figured out. If we don't get this house I don't want to do this again!!!
oops, sorry I didn't see your last post. The house we are trying to buy is a foreclosure...I think that makes the waiting times a lot longer as well. As least to find out if our offer was accepted or not, it took well over a week.
"well over a week" is absolutely normal. it's agonizing for you, for the loan officers, the realtors...you name it.
George, do you think it is "easier" to get a loan when working with a broker? We are first time home buyers and that was what was suggested to us.
Also, we have $40,000 for a downpayment...my husbands credit score is in the 750's...do you think if we put more $$ down it would be easier to get the loan? I told my husband to ask the broker but he forgot.
Hi thomas,
It may be easier for you to get a loan if you are working with a broker, however, getting a loan will depend upon your income and credit score. It you give 20% of the property value as a downpayment, it would be easier to get a loan. However, you can also pay points to lower your interest rate. 1 point equals to 1% of the loan amount. So if you can can pay 3-4 points, your interest rates can get further reduced.
Thanks
It may be easier for you to get a loan if you are working with a broker, however, getting a loan will depend upon your income and credit score. It you give 20% of the property value as a downpayment, it would be easier to get a loan. However, you can also pay points to lower your interest rate. 1 point equals to 1% of the loan amount. So if you can can pay 3-4 points, your interest rates can get further reduced.
Thanks
what is "easier" is simply to be qualified. if you have a decent credit score, decent debt to income ratio and at least the minimum down payment requirement, that makes it easy to obtain the loan you desire. going to a broker, a bank, a mortgage company, etc. will get you precisely what you need. they tell me that brokers can do better because they can shop around.
in my opinion, and in the opinion of most of those who garner my utmost respect, the most important person you deal with is your loan officer. if that person is forthright and trustworthy, it doesn't matter if your loan is being shopped around to various lenders or going to one specific lender. if you have confidence in whom you are working with (deserved confidence), that's key.
i don't honestly think that 20% down payment makes it "easier." as long as you meet requirements, that's what'll make qualifying and obtaining a loan "easy."
in my opinion, and in the opinion of most of those who garner my utmost respect, the most important person you deal with is your loan officer. if that person is forthright and trustworthy, it doesn't matter if your loan is being shopped around to various lenders or going to one specific lender. if you have confidence in whom you are working with (deserved confidence), that's key.
i don't honestly think that 20% down payment makes it "easier." as long as you meet requirements, that's what'll make qualifying and obtaining a loan "easy."
once again, thanks for the advice! we are still waiting to hear back from our broker...it probably won't be until Monday since it's the weekend. We are wanting to put that amount down since it would make our mortgage,insurance,and taxes less than $1,000/mo.