Is this normal?

[Teresa1212]

What is the name of your state? OH My husband and I are buying our first home, not so good credit with 5% down. Closing date is coming up and the mortgage broker called to say that we now do not qualify for 5% down because he has to change lenders because we cannot provide 12 months cancelled checks for rent payment to qualify for the first lender. We pay cash to landlord on time at her request. The new lender he has us approved for wants 10% down. The mortgage broker want to amend the purchase agreement again saying the seller is carrying a seller buy back for 5%. I guess to make it look like we have 10% but do not. I do not want to have to bother the seller again. Has anyone heard of this before. By the way we amended the P A already to included closing costs into the loan. Any input appreciated. Thanks

 

[seniorjudge]

What is the name of your state? OH My husband and I are buying our first home, not so good credit with 5% down. Closing date is coming up and the mortgage broker called to say that we now do not qualify for 5% down because he has to change lenders because we cannot provide 12 months cancelled checks for rent payment to qualify for the first lender. We pay cash to landlord on time at her request. The new lender he has us approved for wants 10% down. The mortgage broker want to amend the purchase agreement again saying the seller is carrying a seller buy back for 5%. I guess to make it look like we have 10% but do not. I do not want to have to bother the seller again. Has anyone heard of this before. By the way we amended the P A already to included closing costs into the loan. Any input appreciated. Thanks

Sounds like a scam to me.

 

[PghREA]

Can your landlord provide 12 months of rent receipts for the first lender?

 

[Teresa1212]

Receipts

Yes, but they don't want receipts they want cancelled checks. They said anyone can buy a receipt book and fill it out. I offered a notarized letter from landlord. They said no.

 

[seniorjudge]

Yes, but they don't want receipts they want cancelled checks. They said anyone can buy a receipt book and fill it out. I offered a notarized letter from landlord. They said no.

They want proof you are responsible enough to handle a checking account.

HOWEVER, these mortgage companies have a way of hooking you and then later finding nits to pick and bump you into a higher rate loan.

That's not illegal but it is pretty slimy.

 

[Teresa1212]

Sound about right to me, we do handle our checking account correctly and our statements should show that. This is such a hassle. Thanks for your info. We are signing the new P A this evening for a higher amount.