It seems that mortgage underwriters are placing every borrower under more and more scrutiny every day.
They especially want to know the source of deposits in the clients’s bank accounts. Since down-payments cannot be paid with borrowed money unless it is disclosed, it is essential to prove that none of the monies used as down-payment will ever have to be paid back to another undisclosed party.
The logic is simple and self-explanatory, but in practice it can be annoying because nowadays even small amounts need to be sourced. If you got a birthday gift from grandma or a rebate check from a product you purchased, an explanation may be required.
Although it seems like the mortgage company is deliberately trying to drive the home-buyer crazy, the fact is that they are just trying to make the loan more attractive to the end investor by proving that the buyer has “skin in the game.”
As time goes on, it’s only going to get worse. The best advice that I can offer is for a borrower to listen to the instructions, grit their teeth and just do it!
Because resistance is futile!!!
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