Home Buying in Memphis>Question Details

Annpatterson…, Home Buyer in Memphis, TN

Why are we being denied by THDA??

Asked by Annpatterson82, Memphis, TN Sun Dec 15, 2013

We buying a home,we qualify with a score of 625,required by the mortgage co.everything they asked we did,we paid off things,had gift given to us we showed proof of my husband pension which has plenty of money,we showed proof of everything!! Yet they trying to deny us the loan.we money to take care of everything they ask,they ask for people very personal information like they acct.no.how much was in their acct since Nov.alot of personal things!!what is going on should we get a lawyer.

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6
In some cases THDA has an income guideline for qualified candidates. Although your credit score is on the cuffs; they may saw some things on your credit report and might thought the loan would be to risky. If I may suggest, check with REGIONS BANK and ask for Steve Sentell 901-821-8801 or email address steve.sentell@regions.com. If not Regions, pay down some of your debt on your credit cards so that your credit scores will increase. For all other information of getting financed please contact me at 901-643-9729 or email me at clay.dickson@crye-leike.com
0 votes Thank Flag Link Mon Dec 23, 2013
There is no such thing as personal information when it comes to asking for a loan

When applying for a mortgage loan it is important to understand why underwriters ask certain questions. One of the most popular questions is “why do you care where a get the money for my down payment and closing cost”?

First understand that when supplying bank statements for a mortgage loan, only the past 60 days worth of statements are required. There are a few things an underwriter looks at when they are looking at your bank statements. The one in question are the deposits. Depending on the type of mortgage loan you are applying for (Conventional, FHA, etc.) will dictate how funds can be accumulated in an account per that loans guidelines.

With conventional loans the borrower has to provide proof that they have seasoned funds (funds in an account 60 days or longer) for the minimum down payment of 5% of the sales price. The statements must show proof the funds were saved by the borrower and not a result of a loan or gift. For FHA loans the 3.5% down payment can be a gift from a family member or close friend.

So, the first reason an underwriter ask for proof of a deposit is to determine that the down payment was accumulated correctly according to mortgage loan’s guidelines. The second reason is to make sure the funds deposited in the account did not come from a new loan or credit card advance that was not reflected on the credit report. Therefore not having the correct monthly debt payments reported in the debt to income ratio, which in turn could affect that amount of loan a borrower can qualify for.

So, to answer the initial question. Underwriters have to prove that the funds accumulated in the bank account did not come from a source that is not allowed by the subject mortgage guidelines. The only way to prove that is show where the funds actually came from.

No need to get a lawyer. It won't help. Ultimately it is the lender's decision whether to lend you money or not and you need to play by their rules and jump through their hoops.

Best of luck!
Tony

Tony Grech | Mortgage Loan Originator | NMLS 977416
PMAC Lending Services, Inc.
Toll-free (855) 642-4762 | Fax (248) 945-4842 | Direct (248) 728-0078
tony.grech@pmac.com
0 votes Thank Flag Link Mon Dec 16, 2013
HI ann

when you are apply for loan with lender they would like to get personal assets and personal income for qualification purpose .

sincerely


Omar Khamisa
Web Reference: http://msjmortgage.com
0 votes Thank Flag Link Sun Dec 15, 2013
Good evening,

Your loan officer should be able to answer that question for you. If I can be of any assistance to you please give me a call anytime.

Regards,
Brian Collier
First National Realty
901-270-8201
0 votes Thank Flag Link Sun Dec 15, 2013
Only your Loan Officer can tell you why your mortgage was not approved. No one other than them will have that information. Whenever a mortgage company is lending you tens of thousands of dollars, they are required to be asking very personal information of you. They would not be doing their jobs if they were not. That is the very nature of the lending world.

Aside from actual discrimination cases, I have never heard of anyone successful winning a lawsuit for a lender not approving their loan. There is no law that says a lender must approve a loan that does not meet their minimum standards.
0 votes Thank Flag Link Sun Dec 15, 2013
Ann,
Your lender can give you the reasoning from the underwriter. If you were approved through an automated underwrite, and can meet the conditions required, there is still not guarantee that other things won't appear.
Your credit score is far from an automatic approval. It generally means a higher rate and closer scrutiny of your application and the paperwork you provide.
There is no way we can know what the reasoning is, but your loan officer should be able to five some reasoning. Once you get that ask what your next step would be. Is the loan amount too high, your income too low, your debts too high, did your employment or deposit verification come back not matching the application?
Ask your lender not just for the reason, but what you can do to get a loan for this house or another.
0 votes Thank Flag Link Sun Dec 15, 2013
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