Yep, I said it. Mortgage business insiders have spent three years beating around the bush. Telling clients “this is just how it is, or how it should have been all along. It was too easy before, now all this “extra” documentation is appropriate.”
It’s all BS. Trust me.
But I can’t make it go away. I can only explain why it is. Maybe then it will make sense and stop you and I from having “why do I have to do this” and “it seems silly that underwriting wants this” discussions that come as your loan is in process. Ultimately, if you want the money to buy that house or the lower rate/term when you refinance, you will do what is asked to get the loan closed.
It’s about what happens to your loan after closing. Nowadays, if your loan is not “perfect “ at closing any lender we may sell your loan to can send it back to us later and demand all the money back. The money we loaned you and the money they paid us for the right to collect your payments. We can’t take that business risk.
So everything has to be perfect.
Crazy stuff in your taxes has to be explained.
Your 401K loan on your paystub has to be backed up.
The random cash deposits in your bank statements are an issue.
Your credit report got whacked in 2007? Get out your pencil.
Sometimes your word is not good enough, we may need a letter from your parents accountant.
Anything else unusual? Explain it in writing.
So get over it. Trust me, those of us on the inside of the mortgage process are not excited about this any more than you are. It’s more work and we are not getting paid more to do it, believe you me. But we want to help you get to the closing table. So work with me, would ya?
