Special offer

Client E-Mail Question #3 >> Common Underwriting Snag

By
Real Estate Agent with Berkshire Hathaway HomeServices - C. Dan Joyner 21498

Following is an actual e-mail I received from a client a while back, along with my response:

 

Hi Sheila,

I am so frustrated right now I could scream! I just got off the phone with Anne (Banker) and she is now telling me that their underwriting department has a problem with Frank’s employment status. She said that he hasn’t been on his current job long enough to qualify! I thought we covered this! They know we will be moving there soon and Frank’s job is the reason! As you know, he's already on his new job! What should I do?

Janie

 

Hey Janie,

I hear your frustration and I understand why you would be upset right now. But here’s the good news: I see this all the time, and I feel like we can clear the matter of Frank’s employment status up fairly easily.

In Memphis, Frank had a junior supervisory position with that plant, and then he received an offer of employment from another plant here, and he took it. My guess is that the underwriter is seeing a brand new start when they review your loan application, and that is not what we have here. What we have is Frank taking a job IN THE SAME LINE OF WORK HE HAS BEEN FOR EIGHT YEARS. He will still be working in the same field (with promotion), and that changes everything for the underwriter. All we need to do is convey this to Anne and we will have that issue handled. There may be a few questions for Frank, but no big deal.

Feel better?

Sheila    

 

Some of my recent blogs:   

  1. Stupid Husband
  2. New Year's Resolutions Are For Quitters
  3. That IS normal...right?
  4. Client E-Mail Question #2 -- Who Can Hold the Earnest Money?
  5. New Year's Meal >> What's Your Tradition?
  6. Price Reduced - Brick home in Anderson/Belton area for Under $60,000!
  7.  New Year's Tradition
  8. Client E-Mail Question -- Home Warranties
  9. Total Lunar Eclipse? I Totally Missed It!
  10. Fresh Tomatoes Anyone? (Even in December)
  11. Kodak Moment -- From Kitty to College...A Love Story
  12. Get Up The Poop or Stay In Your Own Yard
  13. The Happening
  14. Get Your Bread And Milk -- It MIGHT Snow!!!
  15. And So This Is Christmas 
  16. Sue Monk Kidd -- Just Look at Her Now!
  17. Dr. Phil is a Big Disappointment 

 

 

Posted by

If you are looking to buy or sell a home in the  Anderson or Greenville SC real estate areas, visit our website at www.SheilaNewtonTeam.com for tons of great information.

 

   
Sheila Newton   
Sheila Newton Team 
Berkshire Hathaway HomeServices -
C. Dan Joyner, Realtors
864-225-1205 (direct)
864-940-6377 (mobile)

www.SheilaNewtonTeam.com    


                  Follow Me on Pinterest

 

Upstate Real Estate Team

 

       
    

Comments (3)

Rodney Mason, VP of Mtg Lending
Guaranteed Rate NMLS# 2611 - Atlanta, GA
AL,AR,CA,CO,FL,GA,IN,MI,MS,NC,SC,TN,TX,VA

Actually there is a minimum time on each job.  Just being in the same line of work is no longer sufficient.  As of April 2010, Fannie Mae changed their policy to state: History of Income:  "The borrower must have been employed a minimum of 30 days in his or her current position to use the income for qualifying purposes." 

For an FHA mortgages HUD's underwiritng manual states: "The lender must obtain the most recent pay stub showing year-to-date earnings of at least one month, and obtain one of the following to verify urrent employment."

 

Jan 04, 2011 02:50 PM
Sheila Newton Team Anderson & Greenville SC
Berkshire Hathaway HomeServices - C. Dan Joyner - Anderson, SC
Selling the Upstate since 1989

Hi Rodney...Thanks for the response and the policy specifics. In the case of the example above, the borrower had been on his job for over 60 days and could show a lateral move, so things worked out fine.

Jan 04, 2011 03:14 PM
Rodney Mason, VP of Mtg Lending
Guaranteed Rate NMLS# 2611 - Atlanta, GA
AL,AR,CA,CO,FL,GA,IN,MI,MS,NC,SC,TN,TX,VA

Good for you that everything worked out.  More than 30 days on the job and you should be good on that requirement.  It's hard to say why an underwriter would have initially said that 60 days was not OK. 

Jan 05, 2011 01:06 AM