Posted on: 26th Jul, 2011 04:28 pm
While trying to refi, the lender has asked for all the financial information for the corporation I founded, and now of course work for. I provided them with all my w-2's and k-1s. Are they allowed to ask for the financial information of the corporation. I thought that was a separate entity. Should I only have to give them my personal information?
Hi miket,
If you're refinancing your home loan, then they shouldn't ask you about the financial information of the corporation. You will be liable for giving him only your personal information.
If you're refinancing your home loan, then they shouldn't ask you about the financial information of the corporation. You will be liable for giving him only your personal information.
I don't think their request is all that extraordinary, frankly. It's pretty common practice to seek both personal and corporate tax returns. Is this something other than those documents that they're seeking? Perhaps they spotted something in documentation you've already provided that triggered this request.
Honestly, in attempting to qualify for a loan - particularly in the current economic environment - I don't believe that anyone ought to be too surprised when asked for far more than is thought to be appropriate.
Remember, it's the guys with the money who are making the decision whether or not to lend who hold all the cards. Borrowers hold no cards whatsoever. The lender calls the shots and makes the decision as to what is needed to grant a loan. If you provide what is requested and get approved, that's great. If you refuse their request, they can easily deny the loan request - after all, it's their money you're borrowing.
Honestly, in attempting to qualify for a loan - particularly in the current economic environment - I don't believe that anyone ought to be too surprised when asked for far more than is thought to be appropriate.
Remember, it's the guys with the money who are making the decision whether or not to lend who hold all the cards. Borrowers hold no cards whatsoever. The lender calls the shots and makes the decision as to what is needed to grant a loan. If you provide what is requested and get approved, that's great. If you refuse their request, they can easily deny the loan request - after all, it's their money you're borrowing.
And I know you didn't specifically say as much, but I want to add to the above...
All too often, lenders hear "they don't need that" or "why do they need that - it's not relevant" or similar comments from borrowers who don't wish to provide certain data.
I've never quite understood how a potential borrower, who is asking for a certain sum of money, could deem him or herself to be the arbiter of precisely which documentation is needed for a lender to make a decision on whether or not to grant the loan.
In my experience, it's been the person with the money (or corporation) that decides how someone does or does not qualify to borrow. And that's precisely how it ought to be.
All too often, lenders hear "they don't need that" or "why do they need that - it's not relevant" or similar comments from borrowers who don't wish to provide certain data.
I've never quite understood how a potential borrower, who is asking for a certain sum of money, could deem him or herself to be the arbiter of precisely which documentation is needed for a lender to make a decision on whether or not to grant the loan.
In my experience, it's been the person with the money (or corporation) that decides how someone does or does not qualify to borrow. And that's precisely how it ought to be.
The lender is going to ask for them to show ownership and liabilities to the individual. Yes, its a separate entity for tax and personal liability, but it provides your paycheck, so the lender needs to do their due diligence.
