Is it possible for a lender to convince the underwriter to change their decision?
We have been working on a loan to put a new manufactured home on our property. The appraisal came in ,000 more than the loan amount. The broker called yesterday to say that the underwriter denied the loan because of what they saw going in and out of our checking account. My husband is a seasonal worker and the bank statements were from the period he was not working. If you use our annual income to determine our average monthly income, then our debt to income ratio is 25% before the loan (I am including child support payments in this). We realize that we will need to put money in savings for the house payment when he is working to pay the payment when he is not. We have the money to do that. We had 4000 extra dollars after paying our bills this month.
Anyway, the broker didn’t agree with the underwriters decision. He asked us for more bank statements and also something in writing about our plan to pay the payment in the off season. Should I give up that this is going to go through or can the underwriter change his mind?
For Jim…
How is the appraisal value relevant to your problem? I thought that ,000 in equity before even signing would be a plus.
What did the underwriter see going in and out of your checking account? After seeing what went into the checking account and what went out, there wasn’t enough money left to make the house payment which would be true because we weren’t needing to have money left for a house payment.
Is your husband currently not working? He went back to work in July and got his first check August 1st.
If he is currently working why did you provide a bank statement from when he wasn’t working? It went to underwriting the day he got his first paycheck, August 1st, but the current bank statement only goes to July 20th.
If he is not currently working, when does he go back to work? N/A
Do you receive the child support income for at least the next 3 years? The child support is an expense, not income and she will be 18 in April so I believe the payments will end then.
Do
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5 comments
chatsplas on August 17, 2011 at 9:26 am
YES, it is possible
Write it out. . . . Husband is seasonal worker. He has worked in this field for X years and for this company for Y years. In the offseason he is eligible for unemployment compensation. Wife works year-round and during the season the couple save substantial sums to cover the months when income is limited. Over the last Z years, annual income has averaged $####. Couple have never been late with rent payments or utility bills during the off-season due to planning and saving. Sign and date it.
Underwriter wants to know that there is a pattern here, a pattern of seasonal income, a pattern of saving and paying bills.
Mom on August 17, 2011 at 9:26 am
Underwriter will not change his mind. The broker needs to find another.
InsiderTips on August 17, 2011 at 9:26 am
Yes and No !
All types of things happen indoors we do not know about !
So A Big No ….is the answer for the most part, but there are instances where things can get swayed but then this is illegal but it was happening before the meltdown and it still is just more careful about things .
Do not count on it, but anything is possible but unlikely !
Jim on August 17, 2011 at 9:26 am
If you want a real answer to your question, I need the following information:
How is the appraisal value relevant to your problem?
What did the underwriter see going in and out of your checking account?
Is your husband currently not working?
If he is currently working why did you provide a bank statement from when he wasn’t working?
If he is not currently working, when does he go back to work?
Do you receive the child support income for at least the next 3 years?
Do you have any additional income other than your husbands seasonal employment and child support?
What months during the year does your husband work?
dog ma on August 17, 2011 at 9:26 am
If you are working with a mortgage broker, he should be able to locate a different lender who may have different guidelines. Can you provide several years of tax returns showing consistent income for the past 3 to 5 years? That is standard for all borrowers who are self-employed, seasonal, or commission-based. There is no reason to give up – just supply as much information as you can so the underwriter is comfortable with his or her decision.