Mortgage Surprises

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For one new to mortgages, there will be many questions and things that the borrower is surprised that the lender asks for. Here are some of the most common surprises the borrowers run into
1. Bring in money for a no point no fee loan: It’s a no point no fees means you don’t have to pay anything at all right? Just sign and go? Unfortunately that is not the case. The borrower still needs to bring in money to cover the recurring closing cost if it is not “rolled” into the loan.
2. Why do you keep calling my employer? The lender needs to verify your employment. If you have irregular pay, bonuses or commissions then the lender needs to find out how much it is so they can calculate it into the DTI. If that is the case then the employer will need to be contacted twice, once to get your wage information and once to verify your employment.
3. Why do you need blank pages of statements? The guidelines dictate that the lender needs to provide all pages of a statement, regardless of the information on it. If it is a blank page and it is numbered, the guidelines state the page is necessary.
4. Why do I need to tell you about my deposits? If there are large deposits in your bank account, guidelines state that they need to be sourced, so they know where the money came from. Even though you may be making tens of thousands of dollars a month, any large deposits must be sourced. The amount is not based on a percentage but a fixed amount.
5. I don’t qualify anymore? The worse thing that can happen during the loan process is to not qualify for the loan anymore. This can be caused by a variety of reason and is not something that the lender can know immediately. Maybe the appraisal came in much lower than expected or there were liabilities that were undisclosed. These factors are uncontrollable for the lender and if this happens, then there is nothing much either can do about it.

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