Cash-out refi big box bank lately?

Question

Trying to pull cash out of an owner occ rehab from Wells and it is insane. Having to answer questions about all my deposits (letter of explanation) and even want to know about small grocery reimbursements to GF.

Among some of the things they want a letter of explanation about my rent deposits even though they have copies of my rental agreements. Not once though but 3 times now on a $1645 deposit that includes 2 units. They listed the same deposits month after month and wants explanations for all 17 of them.

It is like they are trying to catch me in a lie and they leave no stone unturned. Have done quite a few loans in my life and have never seen anything close to this. I am burned out with this. Just trying to get a fixed rate loan.

Jesse Gonzalez · Answer

One way to work around this is to not list any assets on the loan application.  If the lender or broker gets an approval through fannie mae's automated underwriting engine without any assets listed on the 1003(loan application), then the lender will not ask you for bank statements and you will be able to work around the letter of explanation BS that comes with a loan in today's market.

Jeff S. · Answer

@Anthony G. it was called "recon risk review".

Darn, I was waiting for one more question before I said screw it but then he said "all conditions cleared."

Jeff S. · Answer

@Jesse Gonzalez .

Had to list rental income to qualify so had to prove every little thing.

Anthony Gayden · Answer

I literally experienced the same thing from BofA last month while getting a loan to buy a 4-plex. They wanted letters of explanation for payroll direct deposits from my job, for the IRS deposit for my tax return, and for other little things that were self explanatory.

The worst was when I removed $10,000 from a brokerage account and transferred to my savings account, they wanted an explanation of where the $10,000 came from, even though I sent them a fully detailed copy of both statements and it was extremely obvious.