TA_Processor

Well I'm a straight woman so no to the second one.

As for the first, I'm assuming you mean foreclosures? Not at all in a lender's best interest, at all, we want the cash cow to keep paying, we do not want a house that we have to try and pawn off and sell, lenders generally lose money on foreclosures, at least in the experience I have, however I do not work in that area.

There's more to it than that, lenders want clients, but they are a risk. If you have access to credit cards you might not have debt now but you have the potential for it. Plus, loans used to be far easier, a few paystubs and bam here's a mortgage. The market fell apart in 2008 for a lot of reasons, part of that was lenders not digging deep and making a lot of assumptions. Now there are both lender and federal requirements to verify funds.

The biggest part is, while there are some responsible people how there who properly manage their funds and have little risk associated with them, their in weeds of people juggling books or barely making each payment on time and it can no longer be a pick and choose situation when it comes to verifying assets or income.

The more you can put down up front the less you pay in interest in the long run, it's no longer a huge requirement. It varies program to program and based on everything from your debt to income, credit score, etc. I've seen as little as 3-5% down in special programs but I work more on the refi side so I haven't seen much.

First, I work specifically on refi's so my information may not be as exact.

There are many third party items completed with any loan, a good lender keeps you aware of everything from tax verification both personal and property, insurance, title, everything that goes on with the appraisal and sellers, local, state, federal commitments and laws etc.

If the appraisal came in way off that can be an issue too. I know with a refinance we cannot close until at least 3-7 (depending on delivery and state) after you have had a chance to review it. This may apply for purchase as well, if the inspection was done and it has been more than 5-7 business days, call your lender and request a copy.

Some lenders are doing something different now where they get you completely approved before you look for a house to try and curb the panic that's invovled, you get everything done and verified then all you're waiting on is the perfect home and appraisal.

Pre-approval and conditional approval mean that with everything a lender has so far, you are approved, pending additional conditions.

First, the last thing a processor likes to do is call and ask for more documentation, we know we're going to be told off, shouted at, whined at, cursed at, the list goes on.

In no way do lenders do this for the joy of it.

The concern for sourcing funds is to verify beyond a shadow of a doubt that the movement of funds we are seeing does not result from new debt, a new loan, advance, etc anything that might have to be repaid. This can have a huge effect on your debt to income ratio which in part qualifies you for your loan.

Normally if we were sourcing deposits as the one you described we would ask for the bank statements where the deposits were transferred into (I assume you provided this first), then the matching statements showing where the source funds came from. Each lender varies, I would say 80% of the time there are multiple requests for the same or similar items because we cannot use things like screenshots not showing names/account info. Lenders can't make assumptions so often times clients will provide what they think we need in an effort to avoid work and often end up doing more work in the long run verses just sending what we asked for, the complete statement.

Often time account histories or activity or screenshots don't verify the account holder for us to ensure that we're looking at your account rather than someone else's information.

Every lender is different though and some require more or less for this sort of verification.