Still being turned down for mortgages, time to lawyer up?

Late to the party, but in my life, only ONE company has ever declined my mortgage application... none other than USAA. I have been their customer for over 20 years, yet somehow they are the only institution to decline me, retired military with a solid work history and a FICO well over 700, for both mortgages *and* a re-fi I applied for 7 years ago.

Not anymore. I have slowly been moving all my assets elsewhere. Heck, even their savings account is the lowest yield out of all of mine, at 0.01%. Pitiful. Meanwhile, my savings account at NFCU earns 2.5x that amount, and I'm about to move it to a money market account for 0.45%

Take a look around. They aren't for us anymore, only for their bottom line.

 

Non bank mortgage lenders are going bankrupt, good luck finding a mortgage today even with everything looking perfect.

 

Because applicants are required by law to submit tax documents, employment and bank records. Even when individuals try to mask income type, a qualified underwriter or loan officer will dig it up. It's easy to identifiable CPM when there's inconsistent paycheck deposits and any bank that sees job title and company deposits relevant in the transportation industry will automatically verify if it is hourly wage or cpm. If not, your probably dealing with a super inexperienced person trying to close the deal no matter what because they are hunger for the commission. Any established bank doing their due diligence will find out. Not trying to be a Debby downer, but it's the hard truth. If you can get a low interest rate at another bank where they intentionally close any deal likely because they will offshore the risk on open market shortly after, my hats off to that person but if doing 1%+ and it's a variable rate over the big fixed rate banks your royally taking an ### kicking. There's times to reevaluate if your financially capable to qualify for a mortgage loan.

Land purchasing is usually a 40% down gig. Certain parts of the country that's not difficult at all to bring cash for 100 acres. I myself am always negotiating land purchases with private parties and this is a route I advise exploring if your capital is low and your good with holding for awhile or capable of building a low cost home. With the crazy prices in the market, it's worth considering this route. But builders are also charging asinine prices for renovations and home building. I really don't know what people are thinking anymore like they are just financing kitchen and bathroom renovations for 30 years. If your OTR, it isn't a bad ideal to just buy a house and rent it out. Let someone else pay the mortgage until your ready to settle down.

 

Negative, the 25% down won't make you qualified based off income type. Down payments are required by almost all types of loans except maybe the VA loan. If they are approving you without qualifying income or income history over 2 years, they are probably setting a borrower up in a variable interest loan.

 

I second your comment with USAA, I've never received a remotely attractive interest rate offer from USAA compared to other big banks. Which was quite frustrating that a bank I had a large checking's and savings account with couldn't offer a better rate than an unaffiliated bank I had not history with. I eventually moved on myself. I assume service members are so hyped to brag about 1-2 day early deposits and that makes USAA a good bank in their eyes. There were a few perks that I liked about them, but savvy shopping with all the online apps now makes anything I've ever appreciated about USAA irrelevant. I'd say your strategic move to Navy Fed is likely to pay off since Navy Fed consistently sets the record lowest interest rates to clients in the mortgage industry.

 

i had previously responded on the first page of this thread. i wished him all the best..''
but what you say is true...."there is NO LAW that says they have to loan you money"

that's the bottom line.

some banks WILL loan out the mortgage money, and quite simply many others will not. the "bean counters" at the bank's mortgage division watch, read and keep up with trends in employment, the job market and everything else. they "see" where many people leave job after job, after job, truckers be notorious for doing this.

they do not want to be land owners, or home owners, it'll cost them money to repo the home and resell it.

i wished him well, but in the end...seriously...what's a low end, or even high end lawyer gonna do..??

take his money, promise him some blah, blah, blah.......then tell him, "oh well we tried".....

 

When I was trying to get a loan for my house, I was told something by one lender and it stuck with me.

"In order to qualify for a mortgage loan, you basically have to prove to the lender that you don't need the loan at all. Then you'll qualify."

 

The reason he told you he's never seen it is because NOBODY puts down their $/mile. Stop it.

You do the math and put down how much you make in either a month or a year. They will want to see some W-2's/1099's/1040's to corroborate.