There’s always something to howl about

Is it me or have underwriting…

My wife and I downsized earlier this year, to save money, reduce debt, and put money into the beginning of a rental empire we hope to build.  We have good cash flow, income, and excellent credit.  And yet, maybe because we earn money as a small business – read: law firm – the underwriting process was hellish.

This wasn’t our first time on the rodeo.  We have bought and sold – having moved a number of times, once from Phoenix to North Carolina, and several times in each state.  But it seems as thought these last two mortgages were the most difficult to get, even though we are in the best spot financially we’ve ever been in.

My wife, who did most of the legwork in tracking down last-minute documents requested by the bank, remarked that if they made it this difficult on us to close, imagine how difficult it must be for an average buyer.

I suppose part of the problem is that we are self-employed, and so there is quite a bit of (understandable) concern about the stability of our income.  But, having filed and reported above-average incomes for 5 years straight, you’d think a mortgage company would take those seriously – after all, we aren’t exactly excited about paying high taxes to Uncle Sam, and it would be stupid just to do that in order to show good “income” to a future mortgagor.

Any thoughts?


3 Comments so far

  1. Greg Swann November 8th, 2015 5:14 am

    Every Cautious tyranny abhors deviants. Where the good is never more or less than perfect compliance with the perfect order of everything, you give off the whiff of irredeemable evil. Not to worry. You’ll be assimilated in due course. Good luck with the real estate empire in the meanwhile.

  2. Thomas Johnson November 23rd, 2015 4:16 pm

    We have had the same happen here in Texas. There seems to a be a war on the self-employed. Mortgages are just one barrage. The affordable healthcare mandate is another.

  3. Gabe Sanders December 4th, 2015 4:10 pm

    Many of the big box lenders have some ridiculous requirements for loan approval. And, their customer service is just atrocious. I can’t believe they continue to be in business.