Financing in 95835>Question Details

Jackmele, Home Buyer in Sacramento, CA

Mortgage company asking married couple for separate applications?

Asked by Jackmele, Sacramento, CA Thu Jul 9, 2009

We were approved for a mortgage several months ago on a new home purchase (our primary residence) but the deal fell through the day before closing because the seller had a problem with his bank (short-sale nightmare). Now we're under contract for a different property (no short-sale this time) and the same lending institution who approved our original mortgage (different underwriter, however) is now asking my spouse and I to complete separate mortgage applications. Is this common or even legal? We live in California and all of our assets including the house are joint owned. Also, we are and have been throughout this process a legally married same-sex couple, though it is my hope that we're not being jerked around because of it.

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Thank you all for the great responses! We've decided to just do whatever it is they're asking and get the darn thing done! We both have credit scores above 720, more than enough income to qualify for the loan amount, and are putting 20% down. But as noted in these responses, changes are happening daily and the sooner we get this behind us the better! Thanks again!
2 votes Thank Flag Link Thu Jul 9, 2009
COngrats on getting your new purchase closed! Bank said jump you said HOW HIGH and made it happen!
0 votes Thank Flag Link Mon Apr 1, 2013
It's all good... we closed on the house yesterday. Thanks again!
0 votes Thank Flag Link Tue Jul 21, 2009
Look at this blog it will help you to learn more about your situation.
I've got most of my answers there as well.

Good Luck.
0 votes Thank Flag Link Tue Jul 21, 2009
Great answers in this forum... the loan officer should be able to do just about everything so you just have to literally initial a few places and sign a few places. Most lenders will allow co-borrowers (even non-married) to be on the same disclosure so you shouldn't have to do all your disclosures again... just a few signatures and few initials... Good luck and I hope everything goes smoothly from here.
0 votes Thank Flag Link Thu Jul 9, 2009
Jackmele,

I've been doing this a long time and I can't think of any reason why a married couple would go on two separate applications. If the lender intended to leave a borrower off for credit reasons, that applicant would be on no application, not a separate one.

In your shoes, I would ask your loan officer for a specific reason why this is happening. When you get it, post it here or send it to me directly and I'll be happy to share my thoughts. If your lender is not forthcoming with an answer, you've solved the mystery in a roundabout way. You need a new lender, because you can't afford to work with someone who will not be truthful.

Good luck and let me know if I can help.

Rob Spinosa
rspinosa@mortgagemasterinc.com
0 votes Thank Flag Link Thu Jul 9, 2009
I'm not a lender and this is best answered by lenders but I would suggest that your marriage would have to be acceptable on a national level, as most lenders and title companies are national not state mandated. In addition, the laws are changing so fast in terms of lenders (such as the new appraisal law- HVVC, and a 7 day disclosure regulation) that it could be some new practice that came up.

I wouldn't sweat it as most buyers are asked for strange requests up to the end, no matter who they are. If you want the house, and the loan, just complete them separately and get your home.Nothing is common in the market FOR ANYONE and they're not discriminating, just being thorough to make sure there can be no issue on a national level.
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Thu Jul 9, 2009
Opps! I missed the same sex marriage part! See Julie's answer!
0 votes Thank Flag Link Thu Jul 9, 2009
Hmmm sounds weird but that does not mean that much these days in our current lending world.

Is it possible that the lender is submitting your application so that only one of you will be on the loan? Sometimes this has to happen because you cannot qualify as a couple. Often times this is because income issues or credit score challenges. That is the only thing I can think of off the top of my head.

Did you ask them why? Just curious what they said!

Good luck!
0 votes Thank Flag Link Thu Jul 9, 2009
I am so sorry that your first deal fell through...that must have been very disappointing!

If you are legally married and have a certificate stating as such, you absolutely can fill out the application jointly and have your credit run jointly. Where you may run into issues, is with the title company. With the most recent purhcase we closed for a same-sex cople, the title company would not insure the couple as maried. We did not have to fill out new applications or re-do anything on our end, but the title company insured the couple as unmarried, joint tenancy. My understanding is that the title company had not yet legally developed the veriage for issuinga Deed for a same-sex maried couple. Although I am sure it is frustrating for you, it truly did not hold up the purchase.

My assumption is that since your purchase got so close to closing, your lender probably ran into the same issues at the title company as we did in my office. And becasue your lender is unsure about how to proceed this time, they are asking you to fill our separate applications. I do not think you are being jerked around, but maybe your lender is just uncomfortable with the unknown situation of same-sex marriages couples buying property.

My advice...use what I have told you to have an open conversation with your lender.
Good luck!
Julie Thall
jthall@rpm-mtg.com
0 votes Thank Flag Link Thu Jul 9, 2009
I may be wrong, but I have never heard of anything like this.
Web Reference: http://bestcaloans.com
0 votes Thank Flag Link Thu Jul 9, 2009
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