Financing in Babylon>Question Details

Barbie Gm, Home Buyer in Babylon, NY

Having a problem pre-approving.

Asked by Barbie Gm, Babylon, NY Sun Mar 3, 2013

I met with a Wells Fargo loan officer and he pre-approved me for $375,000. We found a house and went into contracts and then he said he wasn't able to do my loan because I has unreimbursed expenses on my taxes for 2011 & 2012. He said that their rules had changed and they can no longer accept this. Is this the case for every bank? I desperetly need to get the mortgage because I am already in contract. I don;t understand how it was ok before and less than a month later it's not ok.

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Barbie, The first thing I want to say is that unreimbursed expenses will be accounted for with ALL LENDERS. There's no such thing as different lenders have different rules when it comes to this.

I'm sure that other mortgage bankers would agree with when I say that this Loan Officer lied to you. Unreimbursed expenses had the same effect in a loan way before a month ago, in fact it's been like this for YEARS. What this says to me is that he either didn't know about it or he simply didn't bother to review your tax returns carefully enough to notice it.

I strongly suggest that you meet with a reputable Loan Officer and allow him/her to review your credit, tax returns and all other necessary documentation and see where you stand. If in fact you can finance the amount you need to follow through with the purchase contract, you need to know sooner than later. I would also keep your attorney closely informed about all this. Don't simply assume that a denial letter will protect you. Good luck!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
3 votes Thank Flag Link Sun Mar 3, 2013
Barbie,

Javier is correct is saying that "unreimbursed business expenses" is something all lenders have to account for when qualifying borrowers. I'm guessing that when you received your intial pre-approval the person you were dealing with never looked at or even asked you for your tax returns. They probably looked at your pay stubs and/or W-2's only. Bad mistake. Then telling you "a rule had changed" was a cover-iup for their error.
Unreimbursed business expenses are used as a tax write-off, but some of that expense IS ALLOWED to be added back to your income. It depends on what you are actually writing off under this expense. What you need is a "knowledgable" mortgage consultant that can determine what is or is not the problem.
I know others commented about using a "reputable lender" and then offered their services. Wells Fargo is the Nation's No.1 Lender, but like any lender - including those offering services to you now - there are peole working for them that make mistakes or cut corners to give out quick pre-approvals. Please be careful of anyone making offers now that want $$ from you to provide a pre-approval. Watch out for anyone offering quick solutions or telling you they can ignore this expense.
1 vote Thank Flag Link Mon Mar 4, 2013
Barbie,

Wells Fargo has rather strict guidelines and, more than likely, your unreimbursed expenses lowered your qualifying income which increased your your debt-to-income ratio thus disqualifying you from their programs. I work with many lenders, both big and small, which gives you a competitive advantage in scenarios such as this. If you're in contract then you know the clock is ticking and time is against you. Please give me a call so we can expedite a mortgage commitment from the lender being that this is an urgent matter. I may be reached directly via phone or email; whichever is of greatest convenience.


Kindest regards,


Paul F. Marzolla
Loan Officer
(201) 957-6768
pmarzolla@unvmortgage.com
0 votes Thank Flag Link Mon Mar 4, 2013
Have you considered speaking to other lenders....
0 votes Thank Flag Link Mon Mar 4, 2013
William Rugen says:

"Please ignore Gregorio's stubborn comment about not listening to a Realtor's referral. Apparently he forgets where much of his business comes from..."
----
Well, since I am a licensed California RE agent and a Licensed CA Mortgage originator, I believe you have it wrong. I give business to agents, not the other way around.

William, as to your "referral", when people ask questions they usually want answers from qualified professionals. You are not one regarding mortgages. The question was posted in FINANCING. There are many qualified originators here who know a thing or 2 about that topic and are ready willing and able to answer. If you don't know the answer, you have the option to not answer. These questions are not being asked of you personally. you don't even understand the question so how do you know if your guy knows the answer or not?

Do yourself and the people looking for advice a favor; stick to what you know.
0 votes Thank Flag Link Sun Mar 3, 2013
Yes, I 100% agree with Javier to contact a reputable loan officer as soon as possible to see if your deal can be saved. Real Estate agents are licensed to sell real estate and not issue mortgages however the right Realtor can refer you to a reputable mortgage professional to assist you in your needs. Please ignore Gregorio's stubborn comment about not listening to a Realtor's referral. Apparently he forgets where much of his business comes from...
0 votes Thank Flag Link Sun Mar 3, 2013
You should contact Javier immediately, what you should not do is contact William the agent for his magic referral for a lender.

This "contact me and I'll send you to my lender" needs to stop. Especially when the agent in question doesn't even understand the problem well enough to know if their lender can help.
0 votes Thank Flag Link Sun Mar 3, 2013
Thank you for answer. Is it possible to set an appointment to get a 2nd opinion? I'll email you.
0 votes Thank Flag Link Sun Mar 3, 2013
Please contact me at 631-793-1005. I will direct you to a reputable mortgage professional that can assist you. Not all lenders have the same rules...
0 votes Thank Flag Link Sun Mar 3, 2013
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