problems with refinancing?

Question

my mom and brother own a home which they are trying to refinance my brother is a truck driver and gets a 1099at the end of the year. the problem is that they been trying to close for the past month and a half. the company keeps on asking for more things all the time even after they keep on saying that they are working on it. we just want to know is this normal because he has a 1099 and not a w2 or is there something wrong.

Answer 1

There is something wrong.

There is nothing about being on a 1099 that would cause such a big problem - lots of people are on 1099s and lenders deal with them every day. I assure you, your finances are not unusually complex. Your issue lies elsewhere. You either have a lender/loan officer who is in over their head (too busy or too inexperienced) or your file has other issues.

Almost all lenders use what we call "layered risk" analysis in underwriting your loan. This essentially means that if there is nothing bad about your loan, but there are lots of things that are questionable (poor credit, low or shaky income, no savings, bad property) then the loan may still be declined even though the loan fits the program. It sounds like you lender is trying to make a marginal loan fly.

If your loan is with a broker, then ask them frankly what is wrong and suggest that they submit it with another lender. If you went directly to a bank or a direct lender, then consider applying somewhere else as a backup (be upfront with the new lender about this).

DON'T FEEL BAD - this happens more than you think. This is business, it isn't personal, don't read too much into it.

Answer 2

You may want to look into using a different lender. We refi'd last december. Made a couple of calls at the beginning of the month, settled on one guy in the second week. We were closed before christmas. We had a consult with the guy and gave him our 05 tax info, last pay stubs, property tax info, etc.


Good Luck!

Answer 3

It is normal to need paperwork. But not lenders are as disorganized as what you mentioned. Most ask for all the paperwork they need up front. Unless of course they ran a credit check and they need documentation of a paid bill that is showing unpaid on the credit report.

Answer 4

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