Can mortgage companies still ask for more information if you have been given the "clear to close?"?

Question

We are trying to buy our first house and it has been LONG. A few days ago our mortgage broker said we were given the clear to close which I thought meant we were done trying to "prove" that we are worthy of recieving the loan. Now today she has called and said that she needs copies of the check from our 401k and deposit slip. Is this right? Can they continue to ask for MORE stuff? OR is this normal?

Answer 1

Yes they can. Either they found something was missing from the docs or they wanted an undated version of something they have or they are verifying that you did something that you said you were going to do.

Answer 2

This is normal, don't get stressed, you are closer than you know.

I was trying to figure out why they would want copies of your check from your 401K plan and then the deposit slip. Apparantely you got the down payment for you home from your 402k plan.

The lender now want to insure that the money or check you presented was in fact from your 401k plan and not borrowered from someone else. These documents will prove this.

Apparently you have not signed loan docs as of yet, this will or should be your next step, your mortgage broker setting up a date and time for you to sign your loan docs.

Good luck in this purchase, soon the stress and frustration will be over and you will be decorating your new home, having friends over to admire it and making fond memories.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

"our mortgage broker said we were given the clear to close"

The operative word there is "said" which means nothing in this business.

Some times people make last minute purchases or have changes in credit situation for whatever reason and/or borrow money from their 401K at the last minute. Until you see the money in the bank, don't take someone's word to heart.

They can ask for things up until the last minute. Your loan was reviewed by the broker, processor and went through a pre-underwriting process. Then there is a final underwriting which is the final stamp of approval before they push the button.

Good luck with your purchase!!

Answer 4

Mortgage loans are not over until the papers have been signed and recorded.

The investor requires the lender verify sufficient acceptable funds to close and, in some cases, sufficient cash reserves for the borrower's protection in case of a job loss or other catastrophic issue.

Using statements and photocopies of deposit slips is normal in this industry as it is faster than mailing the necessary forms and, in many cases, faster than even faxing the forms.

Answer 5

That would sound perfectly reasonable. Since it has been a long time, the information probably has to be updated.

There are 2 "clears" that you have to be aware of: 1. Clear to close - The lender has enough information to allow you to sign on the loan. 2. Clear to fund - The lender is willing to send the money to you.

You may have needed the updated information to get the clear to fund.

Answer 6

yes it happens but rarely. You may have misunderstood the loan officer as they were waiting on a CTC. Once every one has signed off on a loan it is reviewed one last time for completeness. If that was missing then yes they can stip for that as well.

I am a mortgage banker in TN & KY

Answer 7

Nick; It sounds OK to me..She may be trying to prove assets, i.e. your 401K statement/ deposit that the lender has asked for. Normally she would fax to your bank what is called a "verification of deposit" form which is then filled out and returned to her showing your current balances. With some loan programs you also have to show 2 months of payments in reserves. So I would say yes, sounds OK, sounds like the hard way to me but she might be new. I would call the broker back and ask when docs are ready as well as your signing date..Put her on the spot and tell her you are not going to wait any longer.