How is net rental income verified by lenders on a residential loan application?
If I have net rental income of $ 100 per month, that $ 100 per month will count towards my gross income figure on a residential loan application, but the monthly mortgage I pay on the rental does not count towards my monthly debt obligations (with respect to calcuating debt to income ratios), as long as I have a postive monthlt cash flow on the rental property,correct? How do lenders verify your rental income? What if I won’t be renting the property until after I move out of it, but I already have a signed lease application from my future renter – is that acceptable proof?
Year 2006 I purchased house ($ 625K). I hired mortgage broker and he applied loan for me. BB&T was my lender and loan was approved in 20 days. I put $ 125K for deposit and got $ 500K loan. Last year one of my friend told me that BB&T is not a wholesale lender. There must be a loan officer. I was wondering because from the begging to the end I was contacted by my mortgage broker. He was acting like BB&T was a wholesale lender.
I requested full documents from the lender and I reviewed it. When I saw Loan Application I was confused because it was not 1003 Loan Application. It was Bank’s Retail Loan application. I am not sure but I think that retail loan application is for personnel loan, student loan, or home equity loan etc NOT FOR RESIDENTIAL PURCHASE LOAN… * I said I am not sure.
And my loan is-5 years Installment loan- That means I pay $ 3400 for 59 months and 60th I have to pay about $ 400K. On settlement day I was out of town and mortgage broker told me that my father could sign the settlement documents if I give him on authorization (Power of attorney). So we did. I believe my father didn’t know what he was signing.
Q.1 They (Lender) don’t have to use 1003 when we apply for residential home loan?
2. Is there any violation that I was not contacted by Bank’s Loan Officer or others from the Bank?
3. What do you think about my loan program?
4. Refinancing is my best solution?
P.S. When I applied loan, mortgage broker got all my information on blank paper. He said “I will fill loan application out for you”.
I called mortgage broker….NO ANSWER
Heard rumor that he went to jail.