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mortgage headaches-- a rant

March 22nd, 2011 at 07:40 pm

I have an aching mortgage headache.

I expected to have to provide extra documents and endure a higher level of scrutiny to get a mortgage these days. But I have to admit I am surprised by what they are scrutinizing.

You would think a bank would be looking at your assets, reserves, your income, and your credit history to really get a good idea of your ability to repay your loan and avoid foreclosure. Oh no. They could care less about that!

When I provided documentation of assets, I was missing a huge piece-- statements from hubby's 401k. Well into the 6 digits. They told me not to bother. It didn't matter.

The only things they keep bugging me about are related to the downpayment. I have told them multiple times I am selling stock for part of it, and that it will be transferred to checking when the trades settled. It's like they are on another planet. First, they needed a receipt for every last share that was sold. I managed to scrape that together-- about 12 documents in all.

Then, they wanted me to fax them a copy of the "check" we received from the brokerage for the stock sale. (and then a deposit slip for our bank account) Um check? What is the real estate 1950? It's all online. You sell, it goes into your account. They just couldn't understand why I wouldn't get a paper check OR why I wouldn't have a deposit slip. Um really? I had to explain no less than 5 times today that it would be online transferred into my checking.

Then, just as I was rolling my eyes, it got worse. I got an email from the underwriter tell me I HAD to deposit the stock sale money into my online savings account, then provide 30 days transaction history, a DEPOSIT SLIP (what is the obsession with deposit slips, which once again do not exist with online transfers...), and that my cashier's check for closing would have to come from that account and I would need to document that.

Um, yeah. It's an online savings account. I can't go to a branch and ask for a cashier's check. I spent most of the day arguing with them over this, and insisting that the money will be transferred into my checking account-- ironically, at the same bank I am getting the mortgage from-- from which I will draw the cashier's check.

They finally relented-- after I explained that I can't transfer to my savings account from my brokerage without first filing a paper form and waiting two weeks for them to add that account (we close in a week)-- or that I would have to transfer to checking, then to savings, then back to checking and hope the money would be there on time.

So, yeah, checking. And once again, they said they needed a deposit slip.That doesn't exist. For an online transfer.

Do these people work at a bank in 2011 or in 1895?

So yes, I am frustrated. I have never been asked to document in minutiae the movement of my own money between my own accounts. It's ridiculous. I also don't see how this information has any bearing on my ability to pay the loan OR would improve in any way the mortgage process to avoid any further housing crises. I just don't get it.

Deposit slips and telling me which of my personal accounts I HAVE to take the money out of? It just doesn't make sense.

Now, my income and assets, yes. That kind of information is actually relevant to my loan, but for some reason, they have only required minimal documentation for that.

But transferring my own money from one account to another? Now that is scary shady complicated stuff!

I was so mad today that I almost called the whole thing off!!!

12 Responses to “mortgage headaches-- a rant”

  1. creditcardfree Says:

    Ugh!! Sounds like a headache for sure. I think I have one reading your post!

    Would a printout of your transactions at the bank work as a 'deposit slip'. I wonder if they are just wording things wrong. Can they not call the bank where the deposit is received to confirm that it was actually deposited there? Seems easy to me.

  2. crazyliblady Says:

    We had difficulties last summer. Both of us have a fairly extensive credit history going back to 1993 for me and 1980s for my husband. We currently have no auto loans, student loans, personal loans, signature loans, and only 1 credit card. They did not seem to understand how people making so little money could do so well. I am the sole breadwinner and my husband gets a VA disability check. Our only debts are a small amount on a credit card and two medical bills. We worked very hard to keep it that way. We had to provide W2s for two years, bank statements for 2 years, utility bills for 1 year, and whole bunch of other stuff I don't remember. I don't know why they are being so hard on you, though. You have already proven you can pay off one mortgage. We are first time homeowners.

  3. Single Guy Says:

    I'm assuming this is a bank, not a credit union. Usually credit unions are more reasonable about this type of thing. Too late for you at this point, but just saying.

  4. ThriftoRama Says:

    I don't mind providing documents that are relevant, I just don't see how these are relevant. And of course, they don't exist!! They did mean actual paper checks and deposit slips. they seemed surprised when I said that all of our banking transfers were online.

  5. MonkeyMama Says:

    Holy cow!

    Actually, a 401k would be irrelevant because it is protected from creditors. Meaning, it doesn't help them if you default on your loan. Just saying it is logical that they could care less about that.

    I can understand also why they would want to know you have funds available. Even proof that they are available. The stock market goes up and down, and if you IRS refund isn't there in time - I can see why they would have issue. Obviously they want things more liquid for the loan to move forward.

    That said, they obviously need to get with the times. Rolleyes How obnoxious. (Deposit slips? Not understanding online transfers?)

    @Single Guy - I haven't had good experiences with CUs for mortgage loans. I am sure they are fine, but since they don't seem to be as "hungry" I just couldn't get the best rates with any CU. My issue was flexibility to lock in a rate (outside a 3-day period or something. I think we waited a year to lock in our last mortgage rate. My mortgage broker let me wait a year - my CU wouldn't let me wait a week!)

  6. J-Money Says:

    I think I recall someone saying that banks are so hyper sensitive on the down payment to ensure you are not laundering money -- apparently buying real estate is a common way to launder money. go figure.

  7. Single Guy Says:

    You may have a point about the credit unions. I have only done refinancing with CUs that I was already a member without any problem (my initial mortgage was with a bank). If I wasn't a CU member, or if it was an initial purchase... I don't know, perhaps there would be problems there as well for me.

  8. CB in the City Says:

    OMG, this scares me to death for when I buy! Would it have been better if you had the stock money already in the bank account before you applied for the loan? Just thinking ahead....

  9. ThriftoRama Says:

    I understand wanting to know where the money has come from, but we already provided so many documents that made it clear it was our money and was just moving from either savings or brokerage into checking. I don't understand the pressing for deposit slips and telling me what account I can move my own money in to. It's like they are just adding extra steps. It's just such a headache.

  10. Joan.of.the.Arch Says:

    If misery loves company, you can read a new thread in the discussion forum about this, Thrift-o. Someone just made a post to it this morning, I think. You are awfully busy, so I will go find the link for you.

  11. Joan.of.the.Arch Says:

  12. ThriftoRama Says:

    I probably shouldn't have, but I watched the Money Pit on netflix. Not something you want to see before you buy a house!

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