Financing in Concord>Question Details

Tony, Home Buyer in Concord, CA

Hello. I'm currently applying for a loan through a broker. Is it normal for them to ask for 401k statements?

Asked by Tony, Concord, CA Wed Nov 19, 2008

Don't seem to recall this being one of the requirements back when I applied for my first loan 7 years ago, so I'm looking to see if this is something new. With so many questionable companies popping up out of the woodworks, I'm very hesitant to divulge so much of my personal and financial information right away without checking first.

Also, do any of you have any recommendations (websites preferably) on how I could go about checking on the reliability and reputation of a mortgage lender or broker?


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Tony - Now I see - the Realtor referred you to their in-house lender - That is not necessarily a bad thing - The question is this - Do you feel you are being represented properly? A mortgage is not just a rate and should not be viewed as just a transaction. Does it fit with your financial plan? Are they providing you with options that may literally save thousands over the life of the loan? Are they a direct lender, or can they offer services of several lenders - This is like comparing Allstate Insurance to an Independant Agent that can shop several carriers. What are the closing cost? $395 service fee? Have you received a good faith estimate that outlines all the fees associated with the transaction? Good idea to get one -

Basically - If you are comfortable with the loan officer and the program, that is great and the most important thing.

Sorry - I do not mean to cause more questions - Just want to provide you with some things to think about. I am a native Northern California Gal - From Sacamento with many relatives in the Bay Area - I suppose I am looking our for a fellow Californian! (big smile) -
1 vote Thank Flag Link Wed Nov 19, 2008
Hi Tony: I am a Certified Mortgage Planner from Wisconsin - I only do business in Wisconsin and I am happy to help shed some light for you. I have nothing to gain but to be of service to you and help direct you. Personal referrals are the way to go. The local BBB will not have had a personal experience with the lender of choice. You would be better off asking for a personal recommendation from a trusted source -

In light of the current finance and credit enviornment, lenders are looking at what they consider "layers of risk". As the result, borrowers are required to provide detailed documentation with regard to these layers; Job Time, Income, Assets, Credit, etc. The new guidelines are mandated by the Federal Lending Guidelines, Fannie, Freddie and FHA - Conforming and FHA loan have always followed these guidelines, however since the market turn, the guideline have tightened.

When you got your loan 7 months ago, guidelines were still pretty lenient for A+ borrowers often times waiving W2 income and asset verification and simply relying upon a strong credit score with low debt to income and other strong borrower characteristics. I hope you have found this helpful - Good Luck
1 vote Thank Flag Link Wed Nov 19, 2008
Tony... it's a whole different world. If you have seen or every should have seen any peice of paper, they are likely to ask you for a copy of it! Expect to be raked over the coals. Expect to feel like you're not getting the loan right up until the closing is done. It's the new "normal". Ugh. Welcome to our world.

Having said that, someone else said find a TRUSTWORTHY lender. Please, do. I prefer you not use loan brokers, but a direct lender... ideally one referred by your agent who has seen them close MANY deals.
1 vote Thank Flag Link Wed Nov 19, 2008

It is not uncommon these days to ask for:

w'2's past two years
Tax returns past two years
bank Statements and any other asset accounts you have. (401K, mutual funds, etc.)

As far as reliability, check with your local Better Business Bureau. Google the broker-sometimes you will be amazed at what you find out about people or companies!
1 vote Thank Flag Link Wed Nov 19, 2008
1) use a reputable, local lender referred to you by someone you know/ a trusted advisor;
2) new guidelines are stringent and if you having to confirm your assets to obtain the loan, and are disclosing your 401k as part of that process, then documentation will probably be required;
3) if you are working with anyone other than a lender that was referred to you, then get a second opinion before releasing such sensitive information;
4) BetterBusinessBureau can be a resource; also your local Chamber of Commerce
1 vote Thank Flag Link Wed Nov 19, 2008
Life has changed in lending since 7 years ago. Many lenders would rather have you "thru in your great great grandchildren for collateral". I am not only a realtor but a loan officer realize it appears we are picking on you when in fact not we are doing what standard lending practice NOW requires for us to follow their guidelines.
Web Reference:
1 vote Thank Flag Link Wed Nov 19, 2008
Hi Tony,

These days lenders need all the information they can get regarding your credit history and stability.

I like to use a loan officer at Bank of America., 2020 Willow Pass Rd., Concord. This way you do not have to worry about checking on the reliability and reputation of the lender.

If you would like a "second opinion" and to contact me.
0 votes Thank Flag Link Wed Nov 19, 2008
One more thing Tony - I would recommend that you stay local and work with someone that you can physically shake their hand. Lending is a tough cookie these days. Very best wishes to you.
0 votes Thank Flag Link Wed Nov 19, 2008
Hi Gwenn. Too soon to tell about some of the other questions. The numbers I went over on the phone with him yesterday all seemed fine and dandy and yes, they did fit my financial plans. I haven't submitted any papers yet due to my concern about giving them too much of my personal & financial info. I was given an estimate on closing costs as well, but no good faith estimate nor any figures on paper yet as I have yet to send in any paperwork from my end.

I did go through Lending Tree a couple of months ago and a lender that responded was able to give me a good faith estimate based on some very rudimentary information I exchanged via email. Absolutely no financial paperwork was sent over to this lender before or after I received his good faith estimate.

I've spoken and exchanged emails with both, but am still trying to get a feel for both, whether or not I can work with and trust both of them. I'm barely into the second week since I first contacted the realtor, and even then we've only exchanged a few emails and a couple of quick phone calls due to my work schedule. Same with her referred lender.

Just doing my homework at this point before I start emailing and faxing my private information. Cn't be too cautious with that nowadays.

Again, many thanks!!!
0 votes Thank Flag Link Wed Nov 19, 2008
Thank you everyone!!! Yes, the broker was referred to me by a realtor I'm currently working with on finding a new home. I was just taken aback by the 401k question as I don't ever recall sending that info over the last time I got a loan for my current condo.

I have checked the BBB and Googled the mortgage broker and they seem reputable enough. I even checked to see if their license was current and active at

I've made no commitments yet as I've barely started the process. I am indeed mulling over the choice of going with a direct lender instead of a broker. The one in question right now is offering me a reasonable deal if he sticks with his first and current offer of $395 for his total service fee.

But here's another thing I just found out. While the realtor works for one of the really large and popular realty companies here in the West coast (CA, NV, and TX), I just saw that her office shares the same street address (no suite #) as the lender she referred me to. I was warned by another realtor to be cautious about situations wherein the agent, lender, and/or the appraiser were all in the same address as that was *sometimes* a sign that something fishy may be going on.

Any thoughts??

Thanks again!!!
0 votes Thank Flag Link Wed Nov 19, 2008
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