Cash-out refi big box bank lately?

[Jeff S.]

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]

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.