The loan officer is not asking too much. It sounds as if he/she is doing their best to make sure that you will be approved and reduce any headaches or heartaches later.
Jen Bowman, Keller Williams Realty
There are lots of logical reasons... bigger house, more bedroom, better location better school district, not next to the obnoxious family, not downwind of the chicken farm...
Typically the lender is only concerned with your financial well-being, and your ability to pay back their loan. And yes, pulling your credit and providing your networth could easily be part of that.
Regarding the letter, just tell the truth. Each person may have different reasons for moving so close to the present home, so I know of no "sample" letters available. The lender is probably concerned you may be trying to buy an investment property rather than a new primary home, especially if the new home is similar in size to the old home and not an obvious upgrade.
In terms of the credit, yes, the report is good for 90-120 days depending on the lender, however, whichever lender (or LO's) company you choose must use the credit they pull. If this LO has not pulled your credit yet, he can not move forward....
It is standard and customary for the LO to request net worth info, current income info, and checking account info. This information is all required by the lender to determine your qualifications to purchase the new home.
I am sure your LO would be happy to help you write the letter(s). Best wishes, Jim
Why don't you start by explaining why you are buying a house in close proximity to your current home. Is it bigger, and your family has grown? Is it is better condition, a better school district? You will be asked for a "motivation letter", and if there is not good explanation, they will assume you are buying this one as an investment property, and not only with the loan be priced accordingly, you may have to give a higher down payment than you were planning.
So long a the credit report is no older than 90 days at the time of your closing, they may not have to re-pull a new credit report prior to closing. For documentation, you must provide your most recent pay stub, all pages of your most recent month of bank statements, and all pages/schedules of your '09 & '10 W-2's and Federal Income Tax returns.
A letter of explannation signed by the borrower is required for anyone retaining their current home. It jsut needs to state what you wil be doing with your current home and the reasons why you want to move. An undewrwriter will not decision a loan without an acceptable motivation letter from the borrower.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
Conventional | FHA | FHA 203K Renovation (Streamline & Consultant) | HomePath® |
HomePath® Renovation | VA | USDA | GA Dream | Jumbo Financing
When applying for a home loan, any unerwritting company will require a credit check, job verification and your current asset list and a list of all your debits / payments. PLUS within two days of closing the underwritting department will RERUN your credit report.
This is just the way it is. If you want the loan, you must work with their rules.