Borrowers, you may think that those bank statements aren't necessary...but wait, there's more!

By
Mortgage and Lending with Bank of Oregon a division of Willamette Valley Bank

Borrowers, you may think that those bank statements aren't necessary...but wait, there's more!


I do empathize with clients who remain hesitant to provide a lot of personal paperwork when they are seeking mortgage financing.  But I have to remind folks that they are asking a lending institution to lend them money...and generally, A LOT of money!

I'm working with a gal to get her preapproved for a VA loan.  She provided me with the standard stuff, pay stubs, W-2's, bank statements, allowed me to pull credit, etc.  When I submitted her initial file through our Desktop Underwriting (DU) system to get her preapproved it was returned with a "refer" status.  Meaning that I couldn't get an upfront automated approval, but rather it would have to be manually underwritten by an underwriter.  While she did provide me with her checking and savings account statements, I did ask her if she had any other assets she could provide documentation on.  She followed up with sending me copies of her Retirement statements.  While her accounts didn't have a ton of money in them, I did input those values and resubmitted the file.  

Eureka!  Having just a few more thousand dollars in her asset category was just enough to push the initial findings from a "Refer" to an "Approve/Eligible" status!

So buyers...while you may be of the mindset of "why should I provide all those other statements, I'm not using those monies", by providing them, could just make the difference in your loan approval.

Karen Burket Bank of Oregon

 

Interested in getting preapproved for a home mortgage?  Call me for all your home lending needs!  

 

 

 

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Ambassador
559,434
Peter Pfann @ eXp Realty Pfanntastic Properties in Victoria, Since 1986.
eXp Realty, Victoria BC www.pfanntastic.com - Victoria, BC
Talk To or Text Peter 250-213-9490

it is all about going the extra step, to find solutions for our clients, it is often in the little things that make the big difference.

Nov 03, 2011 03:25 PM #14
Rainer
329,276
Donald Reich
Prudential Centennial - New Rochelle, NY

It seems like a no brainer. If  you are applying for a laon, you want to show yourself in as a good a light as possible. Why WOULDN'T you want to disclose all your assets??

Nov 03, 2011 04:09 PM #15
Rainer
194,497
Stephanie Stringer
First Choice Loan Services NMLS#210764 - San Antonio, TX
Mortgage Loan Originator
Karen- great post! Being a loan officer myself, I am so glad this was posted. Adding just a few extra months in reserves can make a totally different outcome for our buyers! Congrats on your gd star!
Nov 03, 2011 05:00 PM #16
Rainer
178,712
Rosalie Evans
Meritus Group Real Estate - Sioux Falls, SD
The Evans Group, Sioux Falls, SD Homes For Sale

I am amazed at how much more paperwork there is since the mortgage meltdown. When I bought my house back in 2003 there was half as much paperwork it seemed as there is now! What I wonder is if all of this documentation would even matter if the same meltdown happened all over again. I mean most of the people I know that have gotten behind was because of either moving and not being able to sell or unemployment. If either of these things happen does it matter how much paperwork the bank asks for? Would the borrower still get behind. Just pondering things here!

Nov 03, 2011 05:49 PM #17
Rainer
344,596
Charlie Dresen
Steamboat Sotheby's International Realty - Steamboat Springs, CO
Steamboat Springs, CO e-Pro

Thanks for the helpful post. It's a constant "coaching exercise" to explain to folks why all the documentation is needed and how it can help expedite the process. I think many people understand it, but balk at the time it takes to pull it all together...but it's a necessary task and you are so right, buyers are asking a bank to commit a lot of money to their purchase...a good reminder when you need that final motivator to get all the documents needed!

Nov 04, 2011 12:19 AM #19
Rainmaker
4,432,217
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Congratulations on the featured post. Consumers should go to a good loan officer who can explain the process .

Nov 04, 2011 12:56 AM #20
Rainmaker
1,376,217
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Karen, very good tip. Holding back information can mean the difference between approval and disapproval.

Nov 04, 2011 01:49 AM #21
Rainmaker
537,728
Rob Spinosa
Guaranteed Rate, Marin County, CA - San Anselmo, CA
Vice President of Mortgage Lending, Marin County

If we could issue just one bit of advice to potential borrowers before they began the loan process, it would be:  "Be prepared to provide information on EVERYTHING."  In this case, "everything" implies documents related to income, assets, credit history, residence and employment history and so on.  And the operative phrase is "be prepared."  I believe that the good loan originators among us use our experience to ask for information prudently and we don't overly inconvenience our clients, but again, they should be ready (and preferably organized) to provide what we need if they wish to experience a smooth loan process.

It's not as easy as it was to get a loan approval, but it's far from impossible.  And if clients work with their loan originator instead of against him/her, the best of us in this industry can boast very close to a 100% success rate on getting loans funded.  It's as simple as that.

Nov 04, 2011 02:33 AM #22
Rainer
252,448
Shay Campbell
Universal American Mortgage Company - Raleigh, NC
Raleigh, NC

Karen your story is a perfect example of the importance of reserves.  DU and underwriting do not like to see a borrower flat broke the day after closing.  They love reserves, more the better.

Nov 04, 2011 02:43 AM #23
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1,154,258
Bryan Robertson
Los Altos, CA

When applying for a loan, every tangible asset should be disclosed.  It's always easier to borrow when you've got plenty of assets to back the loan.  Much harder with no assets.  Put it all on the table - the underwriters want to see it all.

Nov 04, 2011 02:47 AM #24
Rainmaker
2,455,514
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Something my professor told me in college applies here...Keep jumping through hoops to achieve your end results until you don't have to..those that spend too much time questioning "why" instead of comply,  could weaken or delay their own results...good post and host thank you Karen

Nov 04, 2011 03:40 AM #25
Rainer
143,002
Karen Burket
Bank of Oregon a division of Willamette Valley Bank - Medford, OR
Valley Mortgage Grou, Conventional, FHA, VA, mortgages

Morning Ed!  Thank you for the kind remarks.  Judge and jury...a very good analogy indeed!  I hope your day is a fantastic one!  Thanks again for your visit and added comments.  Mucho appreciated!  :)

Hi Barbara!  I think it's important for not only the lender reiterating this, but as the agent, you too can assist.  Certainly creates more of a "team" environment enforcing to the buyer what's probably going to be needed.   Thanks for your added input.  Continued successes to you!  :)

Kevin, you are absolutely right!  Underwriters will go through paperwork with a fine tooth comb!  Had a transaction recently where there were some small (I mean SMALL as in less than $5.00) deposits that weren't payroll related.  We had to document those deposits.  They were small utility refunds buyers had received from a property they had recently sold.  Again, borrowers need to be prepared to address ANY issue with regard to their account activity.  Thanks for the added comments.  I hope your day is a great one! 

Hi Steven!  You are most welcome and I appreciate your visit!  All the best to you! 

Morning Nancy!  Thanks for passing on this information.  As mentioned, in this case it really wasn't a huge amount of money.  That little bit made all the difference!  Hopefully it can for your clients too, allowing them to get a favorable approval.  Thanks for your visit and enjoy the day! 

 

Nov 04, 2011 04:35 AM #26
Rainer
143,002
Karen Burket
Bank of Oregon a division of Willamette Valley Bank - Medford, OR
Valley Mortgage Grou, Conventional, FHA, VA, mortgages

Hi Laurie! (Angel Realty).  Thank you for the kind words!  I appreciate your comments and you are most welcome.  All the best to you and have a great weekend! 

Morning Peter and Linda.  You are so correct, that "little" bit of extra information can be the difference between a make or break deal!  Have a fantastic Friday and thanks for the visit and your comments.  I really appreciate it! 

Donald...that's a very good question!  I actually had clients recently "offended" that the standard application asked for information such as their life insurance value.  While I told them it wasn't necessary for them to provide that, they pulled the entire deal.  Silly for sure.  

Thank you Stephanie!  I appreciate your comments, especially coming from a fellow LO.  Wishing you all the best and continued successes!  :) 

 

Nov 04, 2011 04:46 AM #27
Rainer
111,788
David A. Weaver
Peoples Bank & Trust Co. - Scottsdale, AZ
24 years helping folks finance their dreams.

Great reminder to us all.  Ask more fact finding questions during the initial interview, it may save you valuable time and the deal as well.

Nov 04, 2011 06:43 AM #28
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Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

Karen: Thanks for the post. I think we need to get everything these days. I'm fortunate in that my borrowers seem to be cooperating. It's nice to see such easy approvals and clean files!

Nov 04, 2011 06:55 AM #29
Rainer
143,002
Karen Burket
Bank of Oregon a division of Willamette Valley Bank - Medford, OR
Valley Mortgage Grou, Conventional, FHA, VA, mortgages

Ho Rosalie!  Yes, there certainly is a lot more required these days in the "new world of mortgages" that we're in.  You do bring up an interesting point.  I don't think necessarilly that the added paperwork is going to "prevent" folks from getting behind on their mortgages, however, it IS preventing the closure of some loans that probably should never have been in the first place.  Thanks for your comments!  

Thank you, Luz!  I appreciate your kind comments.  All the best to you and I hope you have a terrific weekend!  :) 

Hi Charlie!  Glad you found the information helpful.  Fortunately, this gal is very cooperative in what I've asked her for!  Thanks for your visit and added comments.  I really appreciate it!  

Thank you Gita for the kind comments!  :-)   Yes, customers who deal with someone "in the know" are generally going to have a lot less headaches through the process!  All the best to you! 

Agreed, Michael!  100%!  Have a great day!

Rob.  You are SPOT ON with your added comments.  THANK YOU!  Like you, I don't want to over complicate things for my clients, but at the same time, the Boyscout motto of "Be prepared" is definitely warranted!  :-)  Wishing you continued successes and thanks again! 

Shay you are absolutely right!  Especially when we're talking about 100% financing!!!  Have a great day and I wish you all the best. 

Hi Bryan!  Thanks so much for your visit and comments.  Always appreciated!  Indeed....that added paperwork may be the difference in getting the keys to that new home!  :-)  I hope your day is going fantabulous!  :)

Great point, Richie!  I know I've been frustrated with clients who question and argue the "why" factor.  As my mom used to say when we were kids..."BECAUSE I SAID SO!"  lol  But seriously, the client can argue all they want, but at the end of the day "it is, what it is".   Enjoy the day and thanks for chiming in on this one!  :) 

Thanks, David!  What's funny is that I had her preapproved a number of months ago, without the added assets.  I was updating an approval for her.  Can only assume that because her FICO dropped a tad bit that the added reserves really helped out.  Have a great day and terrific weekend.  Thanks for your added comments.  :) 

You are most welcome, Paul!  Thank YOU for taking the time to read and comment.  And yes, it IS nice when we can get a clean approval that doesn't have a ton of added conditions to meet.  All the best to  you and continued success. 

Nov 04, 2011 08:04 AM #30
Rainmaker
809,919
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Karen:

I can certainly understand buyer's reluctance to provide information they think is not necessary.  But if the underwriter asks for it, it should be provided promptly.  The goal is to get the loan. 

Nov 04, 2011 12:21 PM #31
Rainer
143,002
Karen Burket
Bank of Oregon a division of Willamette Valley Bank - Medford, OR
Valley Mortgage Grou, Conventional, FHA, VA, mortgages

Hi Evelyn!  Thanks for chiming in on this one.  Actually, it wasn't the UW who was asking for it as I was merely trying to get an automated approval before it went to underwriting.  This borrower has been great and doesn't question what I'm asking her to provide.  At the end of the day, we got an approval!  :-)

Have a great day! 

Nov 04, 2011 12:42 PM #32
Rainmaker
316,101
Sandy Acevedo
951-290-8588 - Chino Hills, CA
RE/MAX Masters, Inland Empire Homes for Sale

This is great that they had knowledgeable person working for them. It made a difference!    

Nov 05, 2011 04:44 AM #33
Rainer
143,002
Karen Burket
Bank of Oregon a division of Willamette Valley Bank - Medford, OR
Valley Mortgage Grou, Conventional, FHA, VA, mortgages

Thanks Sandy for your visit and kind words!  Have a great week and all the best to you! 

Nov 07, 2011 04:02 AM #34
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Karen Burket

Valley Mortgage Grou, Conventional, FHA, VA, mortgages
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