Dishonest lenders....has anyone experienced this?

[Diana Villalon]

Found a deal to house hack, spoke to 4 different lenders and everyone promised they could do the deal when they asked for the initial set of documents. Decided to go with one of the one that promised we would have closing in 21 days... It is day 9 and my work got a request from the lender to state something in writing that's not true... is this common practice? It's not lying about the income, because  the income is there, but it's on a different category (not w2). Still feels dishonest, has anyone dealt with something similar before? 

[Chris Mason]

Originally posted by @Diana Villalon:

Thanks Patricia, great reminder that keeping integrity is important. It is for me and no matter how good the deal is, I won't compromise honesty. 

David, I am aware of verification, and one was provided, the issue i have is that after they received the #'s, instead of asking why the difference from last year to this year, they asked for a statement that isnt' true, namely "this is the slow season for the business" which is quite opposite of the truth.  

 I'd be curious to know the full story. 

If they are asking for that, it's because YTD income isn't lining up with last year once annualized. For example let's suppose you were preapproved in early Feb 2019 when YTD from the completed month of Jan was $12k, and last year you made $120k in total, that last year's average monthly works out to $10k/mo. And now you're in escrow, and suppose this year your YTD that includes the completed months of Jan/Feb/March totaled out to $15k (you made $12k in Jan, but only $3k in Feb/March combined), which is $5k/mo. 

This hypothetically would tell me one of two things.

- It's the slow season for your business.

- Your loan is probably about to be denied.

Option A, above, is why Realtors can get mortgages in January and February. Industries are allowed to have slow seasons and the people in those industries can still get mortgages. Or let's say your income is from royalties for a book titled "Fun Things To Do In Summer," same idea, obviously it's to be expected that you're going to have less sales when the YTD only includes the cold months of Jan and Feb and March.

That's some context for you. Sooooo what's the full story here, if you don't mind sharing?