Home Buying in 63129>Question Details

WantaHome, Home Buyer in Canton, MI

I am in process of purchasing a home and the underwriter is more concerned about my husband who is not on the application than myself.

Asked by WantaHome, Canton, MI Sat Apr 6, 2013

Hi,
My husband purchased a home by himself about 7 months prior to our marriage. I am not on the deed or the mortgage. Now I am looking to purchase a home for my family. I am currently in underwriting and passed the credit, income and asset stage. Problem is the underwriter is saying that whatever machine they are using pulls me up as an owner on my husband’s home. She is asking me to turn in a copy of my marriage lic. & Deed. I did this. Now they are asking me if my husband pays his house payment on time.I fail to understand why this is an issue with my underwriter. The home is ONLY in MY name. It seems that she is more concerned about my husband who is not on the application than she is on me.
Thanks

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7
Klaus Illian’s answer
It is certainly true that underwriting is tougher than than several years ago. I couldn't tell from your question where you were planning to buy a home but hope you are dealing with a local lender in the community in which you plan to live. Underwriting for loans that will be sold in the secondary market need to meet specific criteria; if you can't get an approval from your lender, you might want to try a small bank or credit union that can offer you a portfolio loan-- one the bank will retain as an asset rather than selling it.
0 votes Thank Flag Link Mon Apr 8, 2013
BEST ANSWER
They are within their rights to ask you to verify that you are not on the mortgage. Asking for a copy of the deed is questionable. However, asking about your husband's credit would be a violation of the Equal Credit Opportunity Act, unless you are relying on his income in order to meet your obligations, or if they are using his income as a compinsating factor because of joint obligations. However, since most borrowers are unable to talk directly with an underwriter, her/his request could have been misinterpreted by whomever communicated it to you. Ask for the request in writing.
0 votes Thank Flag Link Sat Apr 6, 2013
Thanks Bill. Although I really questioned the request of the deed I went along with it just to get the entire process over with. However when the underwriter didn't believe me or the deed and asked for our marriage lic. and information on how he pays his bills I became upset. I mean will they ask how my mothers credit is next? Its a little much but I guess as Spirit stated I will have long forgot about this once I get the home. However one more crazy request I will be contacting my attorney. Thanks again Bill.
Flag Sun Apr 7, 2013
Get divorced is the best advice. http://www.naplesrealestateguys.com/
0 votes Thank Flag Link Sun Apr 14, 2013
As I understand it, you can not purchase a home or sell a home with out your spouse's "permission". This may be why they are asking. Your REALTOR should be able to assist you with this.

Also the lender may be concerned that the other home is going into foreclosure. Many people have purchased a 2nd home and then let the first go back. Although it doesn't affect YOUR position to purchase now, the lender is probably trying to figure out why you are purchasing a new one while retainer the other.

Good Luck working thru it.
0 votes Thank Flag Link Wed Apr 10, 2013
My apologies for the typo, that meant to say - In SOME STATES, You can not purchase or sell a home with out your spouses' knowledge. (Had a client from MI that was used to having to get the spouse to sign a document saying she was aware he was buying additional property).
Flag Sun Apr 14, 2013
Yes it is all the right questions and concerns from the underwriter as all of those questions are within all government back Mortgage and i fact your Loan Officer should have done the due diligence up front and have a separate credit report from your husband and look at the total household income as there are risk involved.


Ensuring that you make the right choice for you and your family is my ultimate goal, and I am committed to providing my customers with mortgage services that exceed their expectations.. As always, you may contact me anytime by phone, fax or email for personalized service and expert advice.

I look forward to working with you!

Lowell Sterling
Mortgage Banker
NMLS# 968898
LSterling@englending.com
16800 N. Dallas Pkwy, Suite 290 | Dallas, TX 75248
Office: 972-646-2411 | Cell: 214-418-7022 | Fax: 214-614-4637
Bank of England /dba ENG Lending: NMLS# 418481
0 votes Thank Flag Link Sat Apr 6, 2013
Talk to your realtor about the state laws in your area. In Missouri, we are a marital rights state - that means that you can buy a home by yourself, but your spouse AUTOMATICALLY, BY STATE LAW, has half ownership in the home. Doesn't matter if the spouse isn't on the title or on the mortgage, they have rights to the home. I don't know the law in your state, but you need to ask your realtor the question. If you are NOT in a marital rights state, find out if the underwriter is - many mortgage companies use national processing centers and the people in the centers don't know the state laws. If that's the case, then have your LOCAL mortgage lender contact the underwriter and point out the law in your state.
0 votes Thank Flag Link Sat Apr 6, 2013
Before becoming a Realtor, I was a Certified Bank Compliance Officer and wrote policy and procedures for one of the largest mortgage lenders in the nation for over 14 years. The Equal Credit Opportunity Act prevents them from checking her husbands credit, or requiring him to be associated with it in any way. It does not allow them to require him to be on the mortgage unless he is on title to the home; which he won't be. Even in a marital rights state, if the spouce is not going to be on title, they cannot require the spouse to be on the mortgage. In a marital property state, the only thing they can require is for the spouse to sign a waiver of marital interest if he/she will not be on title.
Flag Sat Apr 6, 2013
Talk with your lender. FYI, they have lost a lot of money over the past 5 years, getting a home is harder now than it used to be. I know it is frustrating, but working with so many buyers I have found it does little good to question them, instead get them (lender) what they want as soon as you can, jump thru all of their hoops. Once you are done, you will be moved into your new house and probably forget all about the lender's hassles within the first month.

And it does not matter if the loan is "only in your name", you are married.

Best of luck.

Spirit
0 votes Thank Flag Link Sat Apr 6, 2013
It does matter that the loan is only in her name. The Equal Credit Opportunity Act prevents them from asking about or requiring information from her spouse. Being married, if in a community property state, will give her an interest in the property, but it does not obligate her on his loan.
Flag Sat Apr 6, 2013
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