In this article, we’ll review the most common items that an underwriter might want to verify (at the last minute) before closing on your new mortgage.
Your first reaction to these requests can feel like a real knee-jerker!
Consider the following.
You’re almost ready to sign the closing documents for your new dream home. Then the underwriter at the last minute pulls the rug from under your feet. They want to see more money (cash reserves) in your checking account.
This actually happened to me! Not once, but twice now.
I was able to get the extra money from another account and show the underwriter proof of the transfer. Luckily for me, this was an easy process.
But what if I did not have the extra money?
If you cannot fulfill the request from the underwriter, then you’ll need to give them an honest explanation of why. Then see what happens.
I would confront the underwriter and say something like this:
“Look, you said $65,000 was enough during the pre-approval of the mortgage, and that’s all I have. We are three days away from closing. You’d better approve it, or you can explain to the seller, … READ MORE