The day of the unqualified buyer appears to be gone.

You need the purchase.

A year ago I had to go through far more gyrations than normal even with my regular lender on a couple REOs I put over 50% down on.

The sometimes excessive scrutiny has trickled into every loan, with judgement going the way of the dodo bird.

It is almost like the 'zero tolerance' of your typical educational bureaucrat.

A bank VP later called to apologize, but banks make VPs like Keebler makes cookies.

All banks are still lending money. That's how they earn their living. If they stopped, they'd go out of business. But their lending standards have become much tighter. So they may not lend to YOU, but that doesn't mean they're not lending to ANYONE.

BTW, that's not a commentary on your financial situation. I have no idea if banks will lend to you; you need to talk with them and see if you meet their tighter standards.

"All banks are still lending money. That's how they earn their living. If they stopped, they'd go out of business. But their lending standards have become much tighter. So they may not lend to YOU, but that doesn't mean they're not lending to ANYONE. "

Yep.
Plenty of people are getting mortgages from "willing lenders".

Plenty of jumbo loans being approved in my area of CA, but as mentioned above they are qualified buyers and most put down 30% plus downpayments.

I would hope I'm not the only one that is happy they have gone back to "old fashioned" lending standards. Letting people cash out all their equity and use it to fund lifestyles they could not afford, was not a good thing.

You are NOT the only one! Glad that things tightened up....

Thanks everyone, for all your insight I was looking for more personal recent experience, yes glad banks are back to doing checks however some I have heard have gone way to the other extreme. There is a happy spot where all can be happy. Bad credit is not our issue. Infact our credit is better then most, we just need it fast and dont want to waste our time with a crazy bank...I have heard horror stories.

Have you approached your bank (where you have accounts) and asked about getting a mortgage? Don't go by, "what you have heard". Ask what your current bank can do for you.

ML

Your family member has not lost business due to banks not wrting loans for qualified buyers... your family member is losing business by sending banks unqualified borrowers. Why not ask her/him which ones he/she is finding that ARE lending?
The best thing for you to do is go to two or three lenders and get prequalified. Then you will know for sure.
Even though your credit is good, as you say, your debt to income ratio may be too high because of the other houses that you own. (assuming you are carrying a note on these too)
You will find that most lenders have pretty much the same criteria when it comes to lending.

I just built a new house, and sold my old house, so had the "pleasure" of going through this process.

All I can tell you, is be prepared for just about anything. It took a lot longer than it did in years' past, and I was surprised at the level of documentation I had to provide.

I had to provide copies of my retirement statements, which makes perfect sense. What surprised me what the absolute freaking ruckus that ensued when someone at the bank noticed that I had only provided 7 of the 8 pages of the statement. The 8th page said, "this page intentionally left blank.", so I threw it away. Holy cow. Don't do that. ;)

Obviously it was eventually resolved - but I couldn't believe how much hassle it caused.

@patriceny- Holy cow, I forgot that I had the same "blank page" issue when I got an investment condo loan with Mercantile Bank (not recommended). Just when I thought I got them everything, they'd come up with another piece of paper that I had to track down, including that 4th of 4 pages that was blank. The one that took the cake was the copy of my DH's drivers license. I mean, they make those difficult to copy on purpose, and after a couple of tries, they kept saying that it wasn't legible enough. Fine, I'm bringing it to the branch by my house and handing it over and YOUR BANK can figure out how to get a more legible copy for you. Suddenly the last one I scanned them was good enough.
I had none of those problems with Quicken Loans. They gave me a straightforward list of paperwork, and then came back within a day of follow-up (please show us where the $25K came from that showed up in your checking account - it was money we moved to pay for the new pool). I was really impressed how easy it was, and the online tracking is terrific. After we got all the paperwork done, the notary came to our house and we signed everything and we were done and closed. Easy.

Patriceny and c9pilot thank you so much for taking the time to post your experiences. This is exactly the info I was looking for. Not an opinion on my or anyone else's credit worthiness or not. I just spoke to a Realtor and he said some banks are just crazy with demands, that he has clients with 6 figure jobs an it was as if every time they gave the bank one form they thought of another even asking for college info. Thank you! I am happy to hear you liked Quicken Loans, gives me some direction.

We downsized last year. We have excellent credit, have never been unemployed, ever, no debt including car loans and qualified for over double the amount of the loan, with 40% down. We thought it would be a no brainier. The new loan was much lower than the old one. However, it was a daily battle to give the mortage people every new document they required, including months of bank statements on a savings account that had a grand total of about 1000 dollars in it that I didn't initially include on my application, because it was so insignificant..

I think the mortgage industry was foolish to loan without qualifying customers, but they have gone the other way. I would agree you need to sell one of the houses first, then sell the second as you look for a new home. I would strongly suggest you use a LOCAL lender, even if they have higher ratels, it will make the process smoother. You can refinance with Quicken later when it won't matter if you close a day later than planned.

@gmp3 - You reminded me of another one! That mortgage from Mercantile (local bank, or branch at least) where they gave me that paperwork runaround? It was for a 20% loan! We were doing a 1301 exchange and just needed to cover $50K (for a $265K condo)! And it was the same thing, only I was having to call them and ask, "what now?" and they'd say, "ummm...we need xxx" and I was pushing the loan along to close on time and the driver's license thing was the last (I hoped) piece of paperwork I was having trouble delivering. Then they immediately sold the loan to Wells Fargo, which is currently servicing it.
We actually closed early with Quicken. It was so black & white. You send us this, we verify that, appraisal - check, a few electronic signatures, "okay, let's close!" - I honestly thought it would be weeks longer based on that last experience, and I was really nervous choosing some online company that nobody I knew had used.
I researched about 6 lenders that gave me the best rates, and drafted a spreadsheet (kinda geeky, I know) to compare all the fees and charges and stuff (some of which, such as doc stamps and taxes are the same, except credit unions are exempt from one of the taxes for some reason). It came down to Quicken and one other online lender (BB & T? something with B's in the initials - can't remember) and I was literally on the phone with both of them saying, "well, the other guy is waiving the loan origination fee..." and then Quicken waived just about everything (no idea how they make money this way) and I took a leap of faith to give them a shot, and ended up very pleased that I did, which is why I sing their praises all the time.
Will go to them first for my next loan at the end of the month, and will probably refi again with them (for the cost of the appraisal) after we finish up a few things in the remodel so the appraisal goes better, as prices are starting to rise slightly in my neighborhood.
Enough babbling...sick kids at home from school and bored.

My credit-worthiness wasn't an issue either. I'm a bit older, have some decent savings/CD's, along with retirement funds, some other real estate, and some investments.

I had the same issue come up, with having to explain a large deposit. (I was dying to tell the bank I sold cocaine as a side job. ;) ) I sold a building lot I had owned. I told them that. Then they came back and said they checked our county real estate transactions and there was no record of me selling anything! Ummm....the land is in an adjacent county. For heaven's sake.

And the last page of the retirement statement - I swear to God, anyone with half a brain could see it wasn't important. The first 7 pages of the statement had my total balance, showed the breakdown of various funds and balances, all the deposits, and then had 2 pages of all the legal stuff/funds performance, etc.. What did they think I could be hiding on the mysterious page 8?

The whole process left a very unpleasant taste in my mouth too. I used a local bank - one that has had my checking account for 2 decades, along with a good chunk of my savings. By the time I closed on the construction loan and moved into a regular mortgage, I was about ready to pull every account out of there and move to a different bank.

I totally understand a bank needing to be careful. I have no problems with tighter lending standards. What I don't understand is why they seem to enjoy making people jump through hoops now....when the hoops in question seem just stupid, from where I sit anyway.

Does anyone know what is going on? When banks sell these loans, does Freddie or Fannie (or whoever) actually CHECK to see if they have all 8 pages of someone's retirement statement? Or is this just an issue of you give someone a little power and they go crazy?

"Then they came back and said they checked our county real estate transactions and there was no record of me selling anything! "

No one said they got any smarter at their jobs, just that they are looking harder (even if they have no real idea what they are looking at).

With all due respect, if you provided a document indicating it was an 8-page document, but you only sent in 7 pages, why the person could not ask for page 8? You saw page 8 was "this page intentionally left blank." and threw it away, but the person did not see the note. What if page 8 had caveats?

How the person would know the land sold was in a different county or country? I am actually impressed that s/he went ahead to verify the fact. May be s/he should have asked where the land was before verifying it.

I won't fault a person who wants to do a thorough job by following the process that required of him/her by the organization. If there are issues, bring them up to the decision makers in the organization.

All of these excessive demands are the results of creativities of the low denominators who dragged down the economy. Now everyone is paying the price.

This post was edited by azmom on Fri, Jan 25, 13 at 13:10

"All of these excessive demands are the results of creativities of the low denominators who dragged down the economy."

Like the president of Countrywide.

Lending is normal. Normal define what it use to be before Wall St. made it a game of musical chairs.

If you are qualified, great credit, low debt, loan/debt to income value less than 41% and can document steady wages, cash flow/reserves to close and stable job environment - loan shouldn't be a problem.

"Like the president of Countrywide." Exactly right...and the "friends of Angelo", some of whom made the banking laws.

@azmom-
"With all due respect, if you provided a document indicating it was an 8-page document, but you only sent in 7 pages, why the person could not ask for page 8? You saw page 8 was "this page intentionally left blank." and threw it away, but the person did not see the note. What if page 8 had caveats?"

-The assumption is that supposedly these people requesting the paperwork see documents like this on a regular basis. If they did, they would know that the last page(s) are fillers, just like my bank statement advertising services, my credit card statement with a whole page on dealing with the Fair Credit Reporting Act, and our investment accounts that have pages and pages of disclaimers and caveats and other "fine print". The information they need is generally on the first page or two. And I'm the one paying $1 per page to fax them junk pages? All they have to do it ASK, and I'll say, "that was a blank page and I threw it away" and there is absolutely no reasonable reason that they shouldn't believe me. Whatever is on the missing last page certainly shouldn't invalidate the rest of the document.

"How the person would know the land sold was in a different county or country? I am actually impressed that s/he went ahead to verify the fact. May be s/he should have asked where the land was before verifying it."

- If they needed information on a deposit, they just have to ASK for proof. Instead, patriceny's lender for some reason, went looking for it themselves? And how much time would that take instead of ASKING? "Okay, you sold some land, could you send us a copy of the contract or bill of sale?" In my case, I moved some money from an investment account, so they asked to see it and I sent the first page of that account showing the move to the checking account. Since the rest of that investment account was irrelevant to my credit, I didn't have to send the entire 12 pages (Quicken, obviously - because Mercantile would've had a heyday with that one)

I understand that the banks need to verify, but it's nice to deal with a real, understanding person who gets stuff like this and is just a tiny bit more resourceful than checking public record on their own. Isn't it always just faster to ask the person who is interested in getting this loan done?

C9... people lie all the time. Especially people who badly want someone to loan them hundreds of thoudands of dollars. If I was lending someone $500,000 you better believe I would want to see the 8 pages of an 8 page document. Yes, I deal with the BS from the banks on a daily basis too. And whenever I, or my clients get aggrevated with the banks, I just remind myself and my client what hoops they would make somone go through if they were the ones lending some stranger $500,000. That usually puts things in perspective.

I suppose the problem is that everyone involved is removed from the process. If you sat down with George Bailey back in the day and promised to pay him back, you did it, and he could trust you. Now, someone sells you a mortgage for commission, but they aren't liable for payment and someone else gets the paperwork together without understanding the big picture but needs to check the boxes, that don't always make sense, and many customers are trying to scam the banks. Fannie and Freddie can operate at a taxpayer funded deficit and still give their officers fat bonuses on the taxpayer dime.

C9,
I see your point; yet the person who processes this specific document is not the only one who sees the paper work. The ones downstream in the entire operation, the ones up the chain, the internal and external auditors, the lawyers, the persons who might purchase the loans..etc., all of them will see the paper work as well.

I assume these pages on the document you mentioned are of American banks and investment institutes, yet foreign institutes may not follow this convention. If loans would be purchased by foreign investors, they would want to see page 8.

We are in a global economy, lots of things are handled like an assembly line that any out of norm glitch would delay the process and cause extra work and time. Believe it or not, it is highly likely that any step in the process has its purpose. Some seems are "nice to have" when things go well in fact they could be "life savers" when things go bad. Banks want profit, why would they want to add unnecessary costs if they don’t have to?

Whenever we applied for a mortgage (new or refinance), from the very beginning, we expressed that we did not have the time to go back and forth, we wanted to make their lives easy that would make ours easy too. We asked WHAT, WHEN and WHAT FORMAT (electronic or hard copy) of the documents they wanted. We got the list in writing in person or through email. We did not have time or interest to question the purpose, validity, or intention of what they asked, we also did not want to make any decision for their process, such as they should not need page 8. We provided exact what they asked.

A couple occasions, they forgot items, they had to pay for a runner (it is not cheap) to pick up documents at our house. The most recent refinance their mistakes delayed the closing. We received a loan extension with identical loan amount and term. Since we got a killer rate, I guess someone along the line had to pay for the difference.

The way we have been doing may not be the best way, but it has served us well. Over the years getting a mortgage has always been very easy for us.

Part of the abuse started when Fannie and Freddie received pressure form the Executive and Congress to provide loans to 'under-served populations.'
the 'Community Reinvestment Act' was used as a cudgel to force lending to unqualified borrowers.

Mortgage lending has relied on VERY low default rates to allow for the thin profit margins often present on 20 and 30 year fixed rate loans.

At the same time, mechanisms for well qualified borrowers had been put in place to simplify the lending process for them.

Folks with large investments providing good returns often do not want to liquidate these investments to purchase their house.
The tax advantages of a mortgage often make their 'cost' higher than the market gain on investments.

These folks are willing to assume the risk of 'interest only' mortgages, knowing that if the mortgage rate rises or investment returns fall they have the resources to pay the mortgage.

'No documentation' (AKA 'no docs' and later 'liars loans') where used for high earners with strong financial backing and often high down payments.
Few lenders are that concerned with a default on a 50% loan to value note.
With 50% equity there is more than enough value available in a foreclosure, and the borrowers are going to work VERY hard to prevent their equity form being erased.

When the equity level falls to less than 20%, the risk is greatly increased.

By falsifying buyers qualifications and then selling bonds backed by the risky loans the whole system began to teeter.

The low cost of money fed directly into price escalation at rates that could not be sustained (the 'bubble').

When the bubble finally broke, many of the borrowers simply defaulted.
The anticipated default rate of small fractions of 1% quickly overwhelmed the system, making the bonds worthless.

Banks and lenders hold those bonds as part of their capital reserves.
With the downgrade in the bonds value, more reserves must be created for the bank to remain solvent.

The downward spiral starts and momentum builds.

Hi, I mostly just lurk at this site, but figured I would relate our own recent experience with mortgage lenders- our buyer's experience, really.

We recently sold our house in southeast Florida- must have been what they consider a "hot" property ( who'da thunk it?) as it was listed on the MLS for one day, we got two offers the first day it was shown, and one more offer on the second day. We sold it for the asking price. I guess this could indicate our asking price was too low, but we were happy with what we got, and we did want that house off our hands so we could move on.

Our buyers, who must have been extremely well qualified, got a mortgage through the Sunbelt Title agency, the realtors were from Coldwell Bankers, and they referred to the mortgage as coming from "in-house", so I am not sure what the relationship between Coldwell Bankers and Sunbelt Title would be. But from all indications, while we as the sellers were run through a few hoops regarding the appraisal of the house, ( it appraised at approximately our asking price), the buyers had no problems meeting the demands of the mortgage company, and we were all assured while the contract was pending that they'd get the mortgage, it was just a matter of details. Since the closing was delayed by several days due to last minute "issues" on the part of the lender, they bought the buyer a replacement airline ticket home for the one she had had to cancel in order to be in town for the closing. I'm figuring these folks are willing to lend mortgage money!

" I'm figuring these folks are willing to lend mortgage money! "

Sounds almost like they are holding, as in keeping the mortgage and not selling it into the secondary market.

The only folks they have to satisfy are themselves.

With yields on CDs and other very safe investments being held down by the FED's low rate, mortgages are looking better.

The whole saga of Page 8 was a bit more complicated than I wanted to type out at first. I started out by giving them online statements...but those didn't satisfy them for various reasons. So I called the customer service center, and spoke with someone for whom English was clearly a struggle, to request they email me a pdf. Of course that didn't happen. Etc.

What was most frustrating is that I have been a customer of this bank for over 20 years. That is 20 years of checking accounts (with direct deposit, so some measure of employment history as well), savings accounts, CD's, a visa (that gets paid in full every month), and they held my prior mortgage too. Along with that they have my SSN, DOB, credit reports (807, thankyouverymuch), a copy of my driver's license, and enough verification of my retirement savings and investment income to see I am about as low risk as a human being can be.

So seriously, what could be on Page 8? (Again, keeping in mind I already gave them reams on online statements.) The fact that I was the brain trust behind giving interest-only loans to people who probably shouldn't be trusted with a pre-paid gift card? Nope, that wasn't me. Or that I took TARP money when my business planning skills failed? Nope, that wasn't me either. I'm just some poor schmoe who has gone to work every day for 25 years and has slowly and carefully built up my financial position.

I wasn't relying on my retirement savings to fund any part of the construction loan. I would have qualified for the loan if I had zero retirement savings.

So, despite the fact I'm probably having too much fun complaining about something that happened 6 months ago now - I'm serious when I say I don't understand all the extra scrutiny about assets which have no bearing on the loan nor my ability to re-pay it.

I asked the bank and never got a real answer. So I'm genuinely curious about this....particularly now that I'm hearing other people are having to jump through the same hoops - and the hoops have no bearing on credit-worthiness or ability to repay the loan.

Patriceny... I am assuming you got the hundreds of thousands of dollars of financing. So what's your beef? That you had to refax one page that took you a whole two minutes to do. Sheesh!

Hi NC - Sorry if I'm annoying you. I write expressively for amusement value. :)

It took me a lot longer than 2 minutes to get it straightened out. It delayed my final construction closing by close to 2 weeks. Was I a moron for throwing away a blank page? Sure, you can call me that...especially given the fact that I knew they didn't think the online statements I had already provided were detailed enough. Plus there were a few other silly issues that came up during their construction inspections - so again, in hindsight, I should have known.

I'm responding to the question asked here, because I had a difficult experience in closing on a mortgage. Until I stumbled across this question I thought my local bank was just being a PITA to me and I didn't understand why. (I never had any problems closing on past mortgages.) But in talking with some local real estate agents, they tell me that our local banks are finding nits to pick all the time. And now I'm seeing other people here saying the same things too.

I find it a curious thing. :) And I don't mean to annoy anyone by saying so.

"they tell me that our local banks are finding nits to pick all the time"

Driven be Fannie and Freddie, not by their choice.

Patriceny, I want to thank you for writing in and telling me about your experiences. It is because of you that I made sure that "all" pages went in. You helped make my deal go smoother. I don't know why people write in with snooty attacks. The purpose of this community is to build people up with knowledge by sharing in their own experiences, not tear them down. I see it time and time again. People think because they are behind a computer and keyboard they can just say what they want to. I for one don't see the point. But I am a pretty nice well adjusted person and maybe those that do this sort of thing are NOT. I went on here asking about an Ikea Kitchen and someone wrote in and said I would be the talk of the trailer park. That person was repremendend and warned of being booted out. Anyway thank you to all who tried to help me with your past experiances you are what makes GardenWeb so great.

Jiaazzy and Patriceny, I guess I'd conclude that banks are being "nit-picky" for a myriad of reasons, perhaps some because they can, but I was recently speaking to a neighbor who works for the mortgage department at Wells Fargo. I don't think she oversees who gets mortgages there as she was complaining about their nitpicking too. But she was telling me that because of the fallout from all the fraudulant activity with mortgages during the real estate boom, when anyone and everyone, qualified or not was getting mortgages, the pendulum has swung in the other direction and underwriters are being nit-picky about every little detail in a mortgage lest something overlooked comes back to bite them in the butt. Perhaps as NC suggests, there is added oversight from Fannie and Freddie these days, who knows?

Reading all your experiences takes me back to 1985 when we applied for, and finally got a mortgage for a house we bought that year. We went through a local mortgage company recommended by our real estate agent- I'd not recommend them but they seem to have closed shop in any case-. The house was in southeast Florida and we were informed that banks were reluctant to lend money in Dade, Broward, or Palm Beach county due to these counties having the dubious distinction of having the highest foreclosure rate in the country. We had good credit, comparatively little debt, were both working, and we had a downpayment of approximately 55% ( we didn't want a huge mortgage payment) so you'd have thought they'd be happy to lend us money. Apparently not, and that mortgage company tried every which way to disqualify us, from demanding additional paperwork (from specific years' W4 forms, paycheck stubs when we'd submitted the previous two years,) within a deadline they hoped we couldn't meet; they wouldn't count all our income ( said consulting wasn't "stable" enough even though my husband had been doing it for five years at that time), would not consider savings, and counted a debt we had against us even when we paid off that debt. I recall sitting in their office waiting room late one afternoon with yet more paperwork they had requested ( with a 48 hr deadline) and it seemed the underwriter, who wasn't happy I had been able to make this deadline with those additional paycheck stubs, planned to make me wait till the office was closed and then tell me I had gotten there too late. Well, I'd taken some time off work to get there, so I insisted, raised he!! and finally they took those documents. What was riding on these was that we had been informed that this was the last day, no more application extentions, ( had been three due to their demands, and foot dragging) and if we didn't have all those paycheck stubs in their office at 4PM there would be no mortgage.

I guess they finally ran out of excuses, and we got that mortgage, but by the time we got to the closing, no one was speaking to anyone else- I guess we were still speaking to our realtor, but that was it. And the bank who ended up holding our new mortgage ( a Boston bank) sold our mortgage two weeks later, informing us that their Quality Assurance department declared this mortgage (and any in this area) a high risk. I did write them a thank you letter back, informing them of my relief for not having to do business with an entity that truly believes holding a mortgage on a property on which there is a 52% downpayment is a bad investment decision.

We learned to do business with banks directly, and local banks, and never had a problem with a mortgage after that.

Patriceny,
I never called you a moron, nor insisted that you were annoying us.
I only wrote that maybe your reaction to having to refax paperwork is a little overreacting, even if it did delay the closing a bit. After all, you are asking someone to give you hundreds of thousands of dollars! Maybe even more! My only point is that it is a very small price to pay to be able to get your hands on such a large sum of money. We can not have it both ways... either we want easy money with not much nit picking, (and we all know where that gets us), or we put up with a few minor inconveniences when asking someone to give us money.
Stand back and take a look at the bigger picture.

Here's another important one for jjaazzy-
Once your loan is in process (which is where I'm assuming you are) - be sure not to do ANYTHING to your credit until AFTER you are closed.
Do not (and these are real examples that have killed a closing):
- go out and buy a giant flat screen TV for the Super Bowl on credit (or any other furniture)
- get a new credit card or line of credit or anything that remotely smells like credit
- finance a new car
- fail to make a payment on current credit lines
- etc
The bank will do another credit check right before closing and any changes will give them a reason to not fund you. Wait until you close!

I recently got a loan and was a bit taken aback by the documentation requested that had not been requested in any of our past loans. It was OK, just more than in the past.

It wasn't a credit issue - credit scores over 800 and we had over 40% equity in the property. Debt to income ratio was well below even the strictest limits.

Still we had to give things we never had before. For example, we had to look at our credit report and give a written explanation of every credit inquiry on there (they were all very straightforward and obvious on their face). There were other things that were really fine to provide just had to provide more than in the past.

my wife and i purchased 3 acres of ground.there was a basemneand well and septic already done in 2008 also a two car garage .we have had property for almost 2 yrs.since we have owned it i have built a 36'x40'x10' pole barn complete.once again we used are own money so we owe nothing on this property.here are the problems we have any comments would be great.my wife applied for new construction loan at grabill bank.the lady that did the pre approved part.siad everthing was good.her credit scores ranged from 720 to 755.she has been at her job for 22 yrs and her yearly income averages arond 75 to 82 thousand.we currently rent from her mother.we owe 3 more payments on are suv.she has 4 or 5 credit cards.all in good standing with only 3 having a balance.and its a low balance.when the bank went to comp the house they said we couldnt claim a third bedroom in basement because it wasnt a walk out.so we raised the roof line a added a 3rd br.we did have 5 grand on previous amount that we were asking for but i already built barn so amount then was lower we wanted.after not hearing anything for 90 more days [ this whole process was over a 11 month period]when cheryll called the bank they said oh cheryll your credit score has dropped dramatically.they said they had no idea what happened.they use a third source to help them do back ground checks the name of this company is CBCInnovis. the bank said they would have them check into it.they sent us the reason her credit dropped in the past 90 days so much that she no longer qualified for construction loan.it was over 70 or close to that her points dropped.they said fact act one-the number of inquiries on the consumers credit filehas adversely affected the credit score with no dergatory information found fact act two-the number of inquiries on the consumerscredit file has adversely affected the credit score.the only people that ran checks on her credit were the bank.3 times in a 5 to 6 month period.the other was this CBCInnovis ran it 4 times.on two seperate times it ran it two times in one day.are contrater/builder new the man in charge at the bank and called him to see what was going on.after all of this he says the lady that did the original paper work made mistakes and the checks on her credit didnt harm her very much.he said she didnt even qualify in the first place.but you went thru 11 months of comping the house and property and re doing the blue prints comping house again.then didnt even contact us .we called them.from what i have read about the fair act agreement.they are liable for all this headache.can someone please help us with where we stand on this issue.we are not saying or doing anything untill we get the recent credit reports cheryll sent for since she was denied this mortgage than you

sorry aboiut the mis spelling .first paragraph was suppose to read.basement,well and septic. also i put the first floor over basement.once again out of are own pockets.if i would have known all of this would lead us to over a year later. i never would have done it.im sure you can all imagine how thick the 3/4" flooring is now.it will need tore off before i can build anything on it.just a stinking sad situation.we got married last fall.and thought we could spend are first christmas married in are new house. so much for that.thank you all for any advice.

Why did you let it the appraisal run on for nearly a year? I can valuate a difficult home in about 3 hours. Why would you let them take 11 months? Doesn't make sense to me.

Cheryll is out of town and i found the paper work this went from 3/20/12 to 11/07/12 we were niaeve and trusting they were here to help us. not screw us over. when cheryll first got pre approved it seemed like they took forever to comp house/property.then they said no comp because basement was not walk out.we were redoing layout of house and builder got sick was in hospital for over a month and onther month recouperating.bank was notified of illness.when we did summitt revisions they took another 2 months comping house again.after sevearl phone calls they stated her credit dropped just like i stated.i have the papers from the third party company as to why.is there anything leagally that can be done?i do know that those pulls stay on credit report for 2 stinking years.if nothing else it is morally wrong to just keep pulling someones credit and then telling them oh well you dont qualiffy anymore,bull crap.....

This post was edited by Edward1962 on Sat, Feb 2, 13 at 13:17

1. I don't quite understand why a lender needs to use a third party like yours did to pul a credit report.
2. Lenders can pull credit in a way that it shows up as a type of credit check that does not ding your credit.
3. Even though the basement is not a walkout, the lot and basement still has a value. The finished house also would still have a value. I am confused here.
4. If this really is why the credit score dropped, then you need to call this third party and have them help you remove the dings.

ncrealestateguy, from what i have read on the internet this is a company that banks use to pull credit report.why i dont know.there is no other reason for it to drop.we did not open or close any type of accounts.we feel like the bank people and this credit check company just ran it when ever they felt like it.instead of having a copy and if they needed to look at something they could of doe it that way.its pretty dishearting to say the least.in the end the man that runs the bank said it didnt matter about running the credit because she didnt even qualify in te beginning because the lady that did all the paper work made a mistake? we kind of know this woman and she has been at this job for 11 yrs.so it just sounds like they are trying to cover up thier massive mistake.we are witing for the free credit reports to come and then we will see whats on them.the property appraised at 66 thousand.we paid cash 35 for it.and i have built a 36x40x10 pole barn with are own money so we definetley have value we have the deed we owe no one
i just cant believe what has transpired here.thank you though for your input.can they be sued.i have read some of the federal laws and it states they must have a permissible reason to run your credit after inital filing for mortgage,thanks,ed

Have you asked the boss man why your credit was pulled so many times?
I would forget these fools and start over with another lender.

no ones knows.everyone i ha spoke to said its the craziest thing they have ever heard.the only one that said anything was the head of the bank.he saud it didnt matter because she didnt qualify in the beginning,which is bull crap.if the credit reports show it was because of all the hard pulls.that means they have broken federal law according to fair issac law. dont care if it was a mistake. because new people at the bank kept pulling her credit.we did it just in her name because 5 yrs ago i got hurt at work[carpenters union local 232] and i fought with workmans comp and they finally paid a year later.we were not married then and it foced me into bankuptcy.so my credit would of just drug hers down.cheryll has done nothing but work hard,raised 3 wonder full children and paid her bills and this is how she gets repaid.thanks for any input,edward

Edward I'm really sorry this happened to you guys and it sounds like the president is hoping you will just go away and knows someone messed up. If your in for the fight, I would suggest looking for an attorney or, if you have a law library nearby go and start doing some research. I have a GF who got in a real snafu with a local dentist, they did crap work and wanted her to pay for their sloppy mistakes. She at that point had zero law experience and through dedication and lots of hard work has taken them to court multiple times and has uncovered so much fraud on behalf of the doctors, attorneys, and even judges. It's a tail of a different story but if you want to pursue it go for it. My GF became so proficient in the law that people were asking if she was an attorney and some offering her employment for research. She found a love for the law and thinks of it as a big chess game. And when her case is said and done she will start working on law degree, she is the odd duck, me,,,, I can't stand all that termoil. Reason I am telling you this, is her deal has been going on over 4 years, you have to really want to stick it out, and its going to probably cost you some bucks. Maybe BBB do they rate banks? Might go that direction first. But I have zero law experience and just wanted to say sorry about your troubles... And thanks for sharing it we all can learn from others.

Edward, the problem is that you are now married and a couple. You have a bankruptcy on your credit. No bank will ignore that, and it completely changes the eligibility for a mortgage. If you had not married, then the pre-approval would probably have held if her income alone qualified her for the amount she was seeking---if she was hiring a contractor to oversee the build.

Now, you are a couple and have joined your finances and problems together. I'm presuming that you are on disability in addition to your bankruptcy. The bank will look at that, and your plan to self construct the home and wonder how a disabled person will manage to do that. Objectively, it's not a smart money move for any bank to give you money for this home if you are GCing or laboring on the project. Even in the best of times, with no bankruptcy, they'd want around 40% of the projected cost of the house as a down payment for you to be approved for the build. The land and it's improvements could be part of that, but they'd also want to have more assurance about the your ability to DIY the project given your history.

If you want to proceed with the project, wait a few years for the bankrupcy to clear, save more down payment, and then hire a General Contractor and his crew to do the work. Unless you have recovered from your disability for several years at that time. Or look at alternative housing for the lot if that's allowed. Like a mobile home. Those often have incentives for poor credit purchasers and they will provide you some shelter while you DIY a cash build a little at a time if that is your ultimate goal.

If I am not mistaken, even though he is now married, his wife can still apply for a mortgage w/o him being on the mortgage application. I have done that in the recent past.

i was planning to do some work.we do have a general contractor that we contracted the whole job with.i am not on disability but am retired fron the carpenters union.my income exceeds over 2700.00 per month before taxes.cheryll's income is plenty to be approved on her own.she is a enginner with a company in warsaw indiana that makes human implants and has been gainfully employed with them for ,i think right at 26 or 27 yrs.i retired with 27 yrs carpenters union.before i do a mobile home ill just keep renting from her mom.the property is paid for.it is zoned for a modular. but we have worked hard all are lives and raised her 3 children and i had one my son.all we wanted was a custom ranch that we designed together with the help of are contractor.before i built barn property apprased at 61 thousand.i would think the barn would add at least 8 to 10 thousand.we are not going to make any decisions untill we see whats on her credit report. thank you all for your input and words of encouragement,ed & cheryll palmer P.S. real estateguy is right they dont care if we are married she can still file on her own without me.we asked that before we decided to get married.we wanted to be married and spend are first christmas together as man and wife in new home.thank you all.edward

Edward,
Have you entertained the idea of speaking with another lender and see if they can pre qualify you?

yes we have.peoples federal in the town we live in.grabill bank was in fort wayne.are contractor knows himpersonally and explained to him what transpired between cheryll and grabill bank.he said he would be more than happy to talk to us.he likes to do business with locals and keep the money in the community,edward

Find a mortgage broker.

They can shop your loan to numerous lenders.

An individual lender only offers 'their' product.