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why were we rejected?

Posted on: 01st Feb, 2011 06:24 am
qualified for with our W-2's, have good credit, debt to income 18% only problem is that we are in hospitality and we can't verifiy our deposits over the last two months, why would we be declined a mortgage for a second home because we have to much money in the bank?
Honestly, Scott, you are not the person who makes the decision as to what is needed for you to qualify for a loan. Isn't it a bit preposterous to suggest that you ought to be able to judge what is needed for someone to lend you several thousands of dollars (perhaps hundreds of thousands of dollars?).

I worked in banking/finance/consumer loans/mortgage loans for a lot of years, and continually came up against the plaint, "why do you need that?" A lender is trying to build a picture of a responsible person who can be relied upon to make payments on a regular basis over a specified period of time. Part of that picture concerns overall financial responsibility, which would include how one handles a checking account, how one saves (if at all, as many don't), and it also takes into account anything that can be even partially considered as out of the ordinary for that particular person.

You can certainly go to fannie mae dot-com and seek to investigate what goes into the verification of funds for a borrower, and you'll see that "unusual" activity on a savings or checking account is reviewed. You're looking for a government requirement, but it's not a government requirement other than with fha seeking similar information from its potential borrowers.

My personal take on things is this: if you're asking to borrow money from me, I'm going to tell you exactly what I want in order to consider granting you that loan. If you come through, great - you'll get the loan. If you protest too much and refuse to provide what I've requested, then your request for a loan will be denied.

It's that simple.
Posted on: 26th May, 2011 12:14 pm
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