Profile picture for Adel Manuel

Adel Manuel

Confirmed Lender

Sr. Loan Officer (11 years experience)

Specialties:
Conforming, FHA, VA, USDA, Jumbo,
Purchase Loan,
Refinancing,
Mortgage Planning

Advice

  • (13 Contributions,
  • 1 Best Answers,
  • 8 Helpful)

Contributions are sorted newest to oldest.

Can a Mortgage Underwriter require me to source funds not used in the purchase of a new home.

Answer

You are confusing their guidelines for gifts for their guidelines for sourcing deposits. In your case, since the gift was a large unexplained deposit into your checking account, the underwriter is asking for documentation to source the gift. They have to make sure that what you were gifted wasn't in fact a loan. You might also run into issues if the person gifting you the money isn't a family member. If you can't source the money, they will back out the money from your available funds for closing. This may or may not be a huge issue. So the best course, if you want to close on time, is to get that money sourced. Below is some copy and pasting of guidelines so you can better understand why they are asking for sourcing. Gift funds:Allowed for primary residence or second homes.Not allowed for investment property transactions.Gift may fund all or part of the down payment, closing costs (including prepaid) and liquid reserves as long as borrower meets minimum requirements shown in the following table:NOTE: If the borrower receives a gift from a relative or domestic partner who has lived with the borrower for the last 12 months, or from a fiancé or fiancée, the gift is considered the borrower's own funds and may be used to satisfy the minimum borrower contribution requirement as long as primary residence transaction.Acceptable Donors:A relative (spouse, child, other dependent or individual related by blood, marriage, adoption, legal guardianship);A fiancé, fiancée or domestic partner.Cannot be or have an affiliation with an interested third party to the transaction.Documentation Required:Signed gift letter from donor showingthe gift's dollar amount;date funds transferred;statement that no repayment is expected; andinclude donor's name, address, phone number, relationship.Funds to cover the gift must be verified either in the donor's account or transferred in the borrower's account. One of the following types of documentation is acceptable:a copy of the donor's check and the borrower's deposit slip,a copy of the donor's withdrawal slip and the borrower's deposit slip,a settlement statement showing receipt of the donor's check, ora copy of the donor's check to the closing agent,check must be in the form of a certified check, a cashier's check, or other official check.Depository Account (Checking, Savings, Money Market Funds, Certificates of Deposit)If the bank statement shows a large deposit the source of the large deposit must be documented and explained by the borrower.Large deposits are defined as a single deposit that exceeds 50% of the total monthly qualifying income for the loan. 

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Mortgage Professional

Answer

Go to the "Find A Pro" tab on the top of the Zillow website. Then type in your city or zip code and go through the lender reviews until you find someone you are comfortable with. I wouldn't worry to much about what the loan officer has to say about themselves. Concern yourself instead with what their previous clients have said. Hope this helps.

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Chances of securing a mortgage?

Answer

From what you have stated here, your wife should not have any issues securing a loan in just her name. But before you go down that route, have the loan officer attempt to do the loan in your name as well. You might have a score pop up since you were added to her credit cards. As long as you have 2 out of 3 available companies giving you a score, you should be in business. Definitely have the loan officer run automated underwriting to make sure the system accepts you and then have them underwrite your file minus a property. Your wife only being a nurse for 3 months should be fine. She can document both her work and college history before that so it will be usable. Since all of your debt reports under her credit, you have nothing to lose to try it with you on the loan as well. Worst case scenario is the loan officer has to delete you off the loan and run it with just her. Not a bad gamble. 

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Should I include my current rent when calculating my DTI?

Answer

Current rent is not included in your debt to income ratio unless it reports to your credit report and is not scheduled to end until well past your close date. Have your loan officer confirm it isn't on your credit report and you should be good to go.

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How many mortgage preapprovals should I get?

Best Answer

First you need to know the difference between a pre-approval and a pre-qualification. A pre-approval is when your credit and income have been looked at by an underwriter. When you just have a loan officer look at these 2 items, it only counts as a pre-qualification.These are new distinctions that are being implemented into the mortgage industry in 2014.To answer your question, you shouldn't need more than 1 company to get you pre-approved. But if during the process of getting pre-approved, you aren't impressed by that companies customer service, then would be the time to find a new lender. So which company should get you pre-approved? If I was in your shoes, I would find 2 or 3 good loan officers from word of mouth. You should ask your realtor and friends for referrals. Interview them and pick the most knowledgeable loan officer of the bunch. Then give them a spin by having them get you pre-approved. If they blow your socks off with how they treat you, you have found your person. If not, keep shopping until you feel like you have found the right person to do your loan. 2 key points to consider.1) You shouldn't pay an application fee or any other type of fee to get a pre-approval. If the lender demands some type of up-front fee, keep looking for a lender that doesn't. The vast majority of lenders do not charge to do a proper pre-approval. 2) YOU ARE IN CHARGE. Don't settle for someone who was referred to you if they don't mesh with you. If you aren't comfortable with the loan officer or feel like you are being blown off, dump them and find a new loan officer.

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How Can I Prove Income if I just started this year?

Answer

While you can definitely argue that being a stay-at-home parent is a job (and a hard one at that), the lender will need a 6 month history at your new job since you were out of the work force for the previous 2 years. Other than that, I see no issues with your income. Good luck. 

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How are property taxes and HOA calculated for pre-qualification/pre-approval?

Answer

On a pre-approval, I always guess on the high side. It is better to go down on the numbers than to go up. A simple internet search will give me the tax rate for the county and I always go a little higher than that to keep the surprises down. I also try to guess the homeowners insurance high also. I have never had a loan denied because the taxes and insurance came in lower than we thought. And you will want to stay away from getting pre-qualified and go for a pre-approval instead. A pre-qualification is not verified. The loan officer just goes off what you tell him and issues a pre-qual letter based off it. A pre-approval requires the loan officer to verify your income and credit. The loan officer will also run your pre-approval file through a computerized underwriting system to ensure that you fit the program guidelines before issuing a pre-approval. Hope this information helps.

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I declared bankruptcy 6 years ago and my mortgage was not reaffirmed. I have always made my mortgag

Answer

Have the mortgage payments been showing up on your credit report? If they have, I would have your loan officer take a full application and run automated underwriting to see what it says. Enough time has passed that the bankruptcies themselves will not hold you back from getting an approval. But because of the bankruptcy, your credit profile will be scrutinized a little more than someone who didn't declare bankruptcy. Hopefully, you haven't had any late payments since the discharge as this is what will derail most people with a previous BK. If the mortgages were not reporting, the loan officer can attempt a line update to get your mortgages to report correctly. If this doesn't work, you will have to work with the mortgage companies to get you to report correctly. This might be as simple as a couple phone calls or it may require you to hire a credit repair company to help. Hard to say for sure without knowing the whole picture but I know enough to encourage you to apply for a mortgage to see what you qualify for. 

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I'm retired, and have ~70% of my substantial income coming from solid investments in Roth IRAs -- wh

Answer

I can only guess what the question is but I think you want to know if you can use IRA income to qualify for a mortgage. The answer is yes as long as you can have your financial advisor write a letter detailing what your withdrawals will be and that there is enough money in your IRA to support these withdrawals for 3 years. Depending on how long these withdrawals have been taking place, the underwriter might also ask for 1099's and you can bet they will ask to see the most recent quarterly IRA statement. I hope that answers what you are asking. If not, feel free to contact me for more information.

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Approved for a loan while being on probation at my job..

Response

Congratulations on the new job. You should not have any issue with being on probation even if a verification of employment was done on your file. Most jobs have probation periods attached to them. As long as you can show 30 days of earnings, you will be fine. If you have never been a corrections officer before, you will have to show your school transcripts and you will be good to go.To answer M Works01, Your employer would not be able to retaliate against you switching jobs by "turning you in" to the mortgage company that did your loan. The loan application is a snapshot of your financial picture of you on the date of closing. There is nothing the lender can do to you if down the road, a new job presents itself to you. In the same line of thinking, they couldn't call your loan if you lost your job either. As long as you make your payments, they will leave you alone. 

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