One tip I have concerning item number 3, in regards to always paying your credit cards on time: I have all of my cards set up on the minimum auto payment every month, so they are all good in the event that I got busy and forgot to send in a payment. I end up paying them all down as I use them throughout the month, but that is just a good thing to have in place, just in case, so there are no mistakes :) By the way, I love your videos and I am looking into learning how to do what you do! I'm going to be moving into another state and I want to switch careers.
Great advice! There is a link in the description if you are interested in getting your real estate license online - best of luck and thank you for watching.
After the bank appraisal (, which matched the purchase price,) and inspection I got a mortgage approved months before the contract date. With no explanation, at the last minute, the bank decided I needed to put 30% down instead of 20%. My lawyer said there was nothing I could do. There was no time to get a loan from someone else. Luckily I had the money. It taught me that a bank approval means nothing.
I experienced the overtime thing firsthand. They were fine with it but they wanted a letter from my company stating that I had guaranteed overtime same hours every week. Luckily, that was actually the case so I was able to get approved.
First I want to say thank you for all your knowledge. I have been binge watching your videos for months. My loan is about to go to the processor and I am silently having panic attacks.
I made a $7000 deposit the night before closing and they denied my loan in underwriting until i explained where the money came from and showed them the receipts for the transaction from Paypal. So, that is DEFINITELY a must not do. I had to wait and close 5 days later because of that. Loan Officer did not mention that to me.
@claudettealexander5204 Thanks for watching! Avoid Costly Mistakes by Buying My First Time Homebuyer Masterclass and Digital Confidently Closed Handbook - bit.ly/47s4pT7
This is why I have credit card payments on auto pay even though I'm paying them off every month. I could get busy or sick and miss a payment if it is manual. If you're able to do this, I highly recommend it.
Good stuff! Thanks for another great video! I “confidentially closed” on October 14th all because of you and your GREAT videos! Thank you, thank you, thank you!
This happened to me with the first offer was accepted. We went through the inspection process, and the appraisal. Almost literally after reviewing the appraisal report the lender called to say that the condo's finances were too risky and pulled the loan. It turned out that the condo staff filled out the information incorrectly stating that over 50% of the tenants were behind on their condo fees (this was untrue, but the staff misread the condo questionnaire). Thankfully we exercised the finance contingency that allowed us to pull out before being fully committed but that was extremely traumatic. The realtor said we could possibly still find a lender to close on the date but we'd have to move insanely fast and it was bordering on impossible given the red flags with the condo management, the finances. In this case, it was a blessing in disguise and we walked away. Major kudos to you and your channel, Shaheedah. I've been watching your videos when I started the house hunting process and even after I closed on my home. Your videos are super informative, levelheaded and easy to follow.
@@losheroes6076 Nope. It was just money wasted. The only good thing was we got our deposit back at the end of the nightmare. Definitely pay attention to the contingencies you have available. In the end it was a good thing since we now knew what financial hell that condo was in (and more importantly how incompetent the condo management was).
I had a heck of a time buying my current home. My income was primarily from pensions and Social Security (to the tune of 5 times the projected PITI of the loan) with NO debt. My housing ratio was under 15%. What was the problem? On the application I disclosed a side business I had and asked them to disregard that income, as I had sufficient permanent, provable income without it. A single deposit of $500 from this business to my personal bank account almost sunk the application! I still can't believe the pile of paperwork I needed to prove the legitimacy of a single $500 deposit when I had provable, permanent income of over $5,000 per month.
the more I learn the more disappointed I am with this entire wealth/monopoly process. I'm not going to give up, because Salary alone just isn't enough today, but it's incredible what the real world "American dream" entails. It's a certified nightmare.
Typically that should be backed off on your asset. Were you short of $500 for funds to close? If it is needed. Thats when pile of documentation must be needed.
Awesome and welcome to the channel - all my videos will help you with the process, watch this video...I recommend that you get approved to see where you stand. th-cam.com/users/liveJ_SlmyUcjvU?feature=share
I greatly appreciate your videos. We got everything verified beforehand when we bought in 2022, and it was a blessing. We also had different lenders pre-approve us for different amounts and different rates. We decided to go with the builder’s lender because rates were starting to go up and they had the best incentives and rate so we switched two weeks in to a 30day closing deal. It was risky and delayed our closing by 7 days.
Girl thank you! I literally just changed my employment ( because it’s more money that will come in for my bills and mortgage) I am a veteran with monthly compensation but I let my lender know like asap
Yes, is shouldn't be a big deal but its a good idea to check. I had a client take a job making more money but it was a contract job and they made him wait another 6 months or until it became a permanant position.
@@NYCAppl3 That should be fine just make sure it is the same compensation type that they pre-approved you for. W2 to W2, if its a 1099 job speak with the lender first.
I'm getting denied because the taxes on a property I sold 7 yrs ago is still under my name and the current owner, I did not know that before getting under contract! This issue affects my debt to income as they assume that other house is still my debt
@@ShaheedahHill I reached out to the title company and I got a HUD1 document from them that shows the name of the sellers (I was a cosigner) and the buyer, but that didn't work thru underwriting. I also sent a document from the bank where it proves that the loan was paid off, but that didn't work with underwriting either
I remember when working for QL I had clients that needed to show source of payments for large deposits in there accounts. The underwriters requested the bank statements of the person lending/gifting and also needed a letter stating it to be a gift or loan
Yes... Do I need funds on reserve? Have an appraisal contingency in case mortgage will not lend due to appraisal not being high enough. Have a finance contingency so offer is contingent on approved mortgage financing? Find out how many homeowners insurance claims were filed on the house because if there were a lot of claims filed then that can cause a higher home owner's insurance price for me
We're moving 2 hours away. We're under contract and the closing is due in 11days. We're Already done with appraisal and inspection. Both me and my husband work from home, he works for an insurance company and his employer was able to verify that information to the underwriter. The issue now is with me since i'm a Hairstylist and self-employed, working from home. I sent out about 5 letters already, explaining that i got must of my customers online by posting my work on social media to get clients. But the underwriter is still not convince that i will be able to continue to get clientele where i'm moving 2hours away. At this point we don't know what to do. In one of the letter I even mentioned that sometimes i travel to my customer. I also have customers from out of state that come to me. Now they're saying they don't see travel expenses reduction in my past taxes report. And they want more proof of me traveling to my customers. Which I don't have because I travel by car when I go to my customers. I'm not clear what they really want from me , cause if it's past plane tickets receipt I don't have it. This is so stressful I can't even sleep.
This is a difficult one, ask the underwriter or loan processor what would satisfy them to keep this loan moving forward. Many times in the letter of explanation they just need to have it on file if they are audited. Maybe you can go to you former clients and ask them to book with you for the upcoming months, showing that you still plan to service them. But lean on the loan processor to see what you can do to satisfy the underwriter. Try not to stress...you will get past this.
@ShaheedahHill Thank you. I already sent 10 names and phone numbers of some clients that I know live 30 minutes to where I'm moving. They said they're not going to call my clients. They need something more convincing and proof that I used to travel to my customers. Now, I sent receipts of some cars that I rented on Turo in the past months for personal trips. hoping they will accept them as proof that I rented those cars to go service my customers. I'm going to try the booking ahead method as well with my customers. I'm praying for the best outcome. But logically, I don't see why me working from home as a hair braider since 2018 should be an issue. Since I am not moving away from a physical hair salon, I work home, and my customers either come to me or I go to them. I read he law only says you should not move 60 miles away from your job location, but my job location will be my home it seems like the underwriters doesn’t see things like we do. Thank you for answering. I will live an update if anything changes.
Didn’t know some of these were a concern. Scary! Thank you for this!!! Went to check my credit car payments messed one by 2 days! Thought was on auto pau
I am soon to retire from the military. My mortgage lender asked me to submit a letter from my command confirming my retirement pay and when it begins. I hope that suffices.
@@latoyaljohnsonify Congrats on your new home!! I’m glad to know I’m on the right track with these videos because they’re helping me calm my nerves by learning more.. lol
Don’t get caught up in my loan is approved. It really does not mean much. Loans become unapproved at the last minute such as someone goes out and buys something on credit. The day of closing a new credit report will be pulled. There better not be any new accounts. Heard once of a person who walked into closing and announced she was just laid off. Closing is done due to unemployment.
My loan was recently denied because the home association didn't want to answer the questionnaire, specifically the deferred maintenance question and this was in Connecticut. So heart breaking!😢
Thanks So Much @Shaheedah. You’re A Jewel! I’m considering buying a home and this and all of your other videos have given me just what I need! Thank You Again!
@@ShaheedahHill I must confess I watch your videos over and over and also I share them with my little sister who is also in the market for buying her first home. We joked last evening saying gee we wish we could have you as our Realtor!
@@g-mawof5310 Thank you, I appreciate that! Please join my first time buyers Facebook group as well if you are on Facebook. Link is in the description.
Great video. I have student loans that don't have to be paid until 2023/2024I plan to buy A home next year. Is thIs a disqualifierb Before I start paying that my car loan will end so no over lap in to finances
Thanks for this video I'm currently under contract and I'm so nervous that something will happen... my appraisal is due back today I'm just praying I'll have answers soon buying a home can be stressful
Closing this coming week! I’ve been cleared to close by the lender just waiting on a few repairs then we are good to close! At this point, will y hey check my marital status ie check marriage license or divorce records etc.
I absolutely love the advice that you give on the home buying process. I cosigned on a auto loan 6 years ago, and the car w a s repo'd. Can you provide advice on what lenders require when there is a deficiency balance on a car loan?
Condition of property per appraisal is another reason for possible denial. Can lead to some properties being deemed as not financeable by underwriting.
@@cryptodirect I had to send the the letter they mailed me or you can print something from your IRS account online with the monthly amount.. they want to see the amount and duration of the payment plan.
I’m on the same situation. I didn’t disclose it but I pay it monthly with my credit card and just pay it right off. I don’t have any tax liens so I wonder if they will even know 🤷🏽♀️
What if it’s an investment mortgage where no income verification is necessary -especially if you have a few hundred thousand in the bank and have top tier credit.
For these types of loans, they will likely deny it based on insufficient savings - you need to make sure you have the down payment and if they calculate the rent will not cover monthly expenses.
I'm about to start my hb journey but I like where I'm currently leasing I would love to purchase and remodel, the homeowner wouldn't mind selling it to me.🤞🏽
That would be great, approach them as soon as possible with the idea and see if their mortgage is assumable. Here is a video on that - th-cam.com/video/FBs7_RwW2hk/w-d-xo.html
I am a Claims Adjuster Independent Contractor. Prior to becoming a contractor I worked as a claims adjuster for 23 years for various companies. I made more money in 3 months as a contractor than I did in 6 months being a staff adjuster for a company I doubled my salary! Why is being a Contractor such a problem when attempting to buy a home?
Because lenders see any contract work as unstable and many require 2 years in the contract position to determine what your income will be in the contract role...since now it can fluctuate vs. when you were on a salary it was predictable.
That scenario you just mentioned is exactly what just happened to us. We are less than 1 month from closing and 1 missed credit card payment dropped my husbands credit drastically! We were just fine until that news. Is there anything we can still do to save this deal?
Don't panic, speak to your lender. If you can get the credit card payment applied and if the credit card company can agree to remove it, the lender can pull your credit again before you close.
I am under contract to build a home through FHA. I had a load charge offed 4 years ago and I just checked my credit and see it has been deleted. If it has been sold to a collection agency how can I find out and contact the agency to settle it before it is reported to the Credit Bureau.
If it goes to collections it usually shows up on your report within 180 days, so I am not sure how you will be able to know if it will show up since it has been 4 years. Ask your lender to see if they have any advice for you. Thanks for watching.
Wish I would've saw this when I was in underwriting 2 months ago. I stupidly took out a loan and almost got denied smh. Thankfully I was able to close.
But you made it that is the important thing. Congratulations on your new home! Real Estate professionals, agents and lenders need to do a better job making sure buyers understand this. Thanks for sharing and watching.
@@tiffanyreign the underwriter called me and told me I had to provide the exact same money in cash to cancel out the money I withdrew. It could only be a non refundable gift from someone. So I called my dad and asked him to give it to me and he did (even though between us I paid him back). I have been living in my new house ever since then. It really helps to have some sort of support base. I know that's a basic concept in life but I really saw how important that is. I'm in my 20s so of course I foolishly thought I knew everything and tried to do everything myself. It was a valuable lesson.
@@FateofFallacy I agree with having some sort of support base. Buying a home is excited and extremely stressful at the same time. I’m in my 20’s as well and could relate. Glad it worked out for you enjoy your new home! & thanks for your response!
Great 👍 information and right on point. I'm in underwriting now...they go through every bit of information..I mean every bit. I'm approved with conditions. Working on my conditions now. Just received my payment for the appraisal. I have to start looking for quotes for home owners insurance.
My credit score is good got pre approved for mortgage was at closing got denied because of no payment history why didnt they tell me that in the beginning
@@warrenross56go thru a verified pre approval instead of just the standard pre approval. That way they will verify your income, assets and credit upfront. I hope this helps🙏🤍 I am also in the process of buying my first home. My husband and I are currently in contract 😀
Thank you for all of your videos!! What deposit amount does the underwriter not question. Example $400.00 and below. Does a rule exist in regards to this?
Yes, usually 25%-50% of your normal monthly income would be considered large. However, if the deposits happened over 60 days ago, it likely would not matter, they consider that seasoned. So if you plan ahead you usually don't have to worry. Here is more information, thank you for watching. mymortgageinsider.com/large-deposits-bank-mortgage-application/
Hi Shaheeda! I'm very worried as my husband and I are about to enter the underwriting phase. In fact, I'll email you my concern. I'm just not too sure if it's touchy.
I sure would like to talked with you, my husband and I are in a dilemma right now what we tried to buy a house we got approved for the house pay all the fees we needed to pay had a date set for the closing in the underwriter at the last minute said she was not going to sign the paperwork, they gave us our earnest money back but we lost out on all the rest of the money and we had a VA loan we do not know what went wrong can you help we are thinking about suing the realtor company in the underwriter. Help
My husband and I were under contract, paid for private inspection, had dates for walk through and closing on 3/31 but were all of a sudden denied due to his type of employment as a contract worker (permanent position). We were very upset because we told the lender everything up front and provided everything that she requested. She never mentioned that his job would be a problem. Nevertheless, are there lenders who will accept this type of employment?
Yes, but they will require my paperwork than a W2 worker. You need 2 years of tax returns with his income and usually profit and loss statements or 1099s from his business. Next time try to go through underwriting first and use a lender that your agent recommends. You need someone that does business loan approvals/ 1099 loan approvals often. I am sorry you experienced this. Thank you for watching.
You will likely have to explain anything over about 10% of your monthly income, in and out of your accounty in the last 60 days. @Banana69999 Thanks for watching! Avoid Costly Mistakes by Buying My First Time Homebuyer Masterclass and Digital Confidently Closed Handbook - bit.ly/47s4pT7
No, it shouldn't but let your lender know you have income coming in from a 2nd job if you plan to use that income for your down payment and/or closing costs. The lender has to know the source of all funds.
Can you do a video about how to get around if possible if youre trying to by a house that youre going to live in but its a little distance from your employment. Would you get denied for that as well? My husband and I live in nyc and are trying to get a house in PA but its 2 and a 30 from our jobs. Would we get denied?
Talk to your lender ahead of time and explain that you will be commuting back and forth, and you will not own or rent any other properties, since many people use mass transit in the Tri-state area and live farther away from their jobs, there are usually exceptions. But you need to see ahead of time the documentation or evidence you will need to prove owner occupancy to get a lower down payment and lower interest rate. @nancyramos7977 Thank you for watching
Yes, possibly. It depends on how much it is impacting your credit. Here are 2 videos you should watch- th-cam.com/users/livecpewL4OlpjQ?feature=share and th-cam.com/video/V4tXzos8GmU/w-d-xo.html
I forgot to tell my lender that my husband is on a payment plan with the IRS. Can this cause my loan to be deny? I’m almost there and don’t want anything to prejudice the process by not providing this information.
They will likely see it when they pull the CAVAIRS report. Go ahead and let then know now, because they will likely include that in your debt to income ratio. Thanks for watching!
@@ShaheedahHill Thank You for taking the time to respond. All your videos has been AMAZING I have learned so much from all of them. You are AMAZING. Keep up the excellent job 😊
Thanks so much your info are very helpful . quick question what will happen if you're late in your card before closing and the lender tell you that you're not approved will they refund your deposit back
You do not pay your lender a deposit, but if you paid a deposit or earnest money to the seller, it may be at risk. You have to see what you contract says in terms of a finance contingency, if you are no longer approved for the mortgage. Thanks for watching
Easy to listen to and follow. Very helpful information. I was concerned about a few things you covered. Back taxes funds on hand and changing jobs, thanks.
Yes, but it has to be sourced and must come from family or close friends. Sourced means that they need to see it come from that person's account to yours. They will also verify the relationship.
Hi I have a quick question… my husband and I are purchasing a home and the lender is asking us to pay off two credit cards which is fine but they want us to wire them the funds and say that they will pay off the debt at closing. Have you ever heard of this? They say that this will make things look better for underwriting.
Paying of debt at closing is pretty common, usually they want you to bring a cashiers check made out to the creditor and the closing attorney or title company will mail it out to make sure it is paid. See if that is an option, with so much wire fraud it may be safer option to do it that way.
Same as installment debt - if payment is reported on credit, that's the amount they will use. If no payment is reported, a payment needs to be documented. Anything owing 10 payments or less is not counted against DTI. Thank you for watching. If it is not on your credit report they may see on bank statements.
If you need to do that to lower your DTI ratio. Please watch my video - "Can you afford a house" You credit score may take a temporary hit when you pay it off.
Very informative! Some of these things I've heard of before (no big purchases) and some are new. Question: for new construction homes, how does an appraisal work in any of your scenarios? Also... same appraisal question for a USDA loan 🤔
Appraiser typically comes twice for new constructions once when it mostly complete and again when it is fully complete. USDA is a typical appraisal. If you havent already please watch my appraisal video.
@@ShaheedahHill I JUST watched it about a half hour before I saw that you posted this one 😁 Not too long ago I checked out the map/website you mentioned in it. Thanks so much for the swift replies ❤
Question: when buying a house with someone, does it matter if the money is in the same bank account or not? If the both of us have our own personal savings account should we get a joint savings and move the funds there?
Excellent, excellent, excellent advice! Will you please do a video about deeds and how to ensure that you are not left off of the deed of your home during the signing process when you're buying a home with a significant other or spouse? I have heard of that happening to several people because the spouse goes behind the partners back to sign without them knowing.
The best thing to do it to get added at closing. Attend the closing to make sure you are on the deed. However, if you are not added at closing the owner can add you after pretty easily. Good question.
@@ShaheedahHill Thank you. I thought it was a done deal if that happens. I think it's terrible for a person's partner to try and get the deed without the other on it, but whenever I get married, I'll remember this just in case.
I have a question My wife was laid off from her job after we got our pre-qual for 409,000 (with contingencies of keeping the same income). this layoff happened on 6/2/22, but she has a limited-duration job that was paying the same amount as the job she lost due to layoff and will be getting a new permanent job starting 8/1/22 which makes $3 dollars less. The new build home ended up only being 392,000 (less than pre qual of 409,000) and isn't ready until 3/2023. Will that difference be detrimental? we didn't tell our LO about the layoff. I'm a little worried after watching this very informative video b/c I did put down earnest money
@stephanieharries7746 Thanks for watching! Avoid Costly Mistakes by Buying My First Time Homebuyer Masterclass and Digital Confidently Closed Handbook - bit.ly/47s4pT7
Hi Shaheedah if you use a 401k withdrawal towards closing costs or a down payment would that be ok because it can be proven where that source of money is coming from?
When you initially complete your application, you should disclose any accounts, including investment accounts, you intend to use toward your purchase. SInce this is an account you own, it shouldn't be a problem at all. Thanks for watching.
I love your videos. They are very helpful for me and my hubby while we are going through the underwriting process as of now, Can you do a video on how to do a letter of explanation on things on your credit report please 🙏🙏
I don't want to do a full video on it, but my best advice is to keep it short and sweet. If they are asking, for example, why you paid your bill late. Brief answer - "I was laid off and missed a payment. When I regained employment, I caught up on all of my payments" Many times underwriters are just looking to have something in your file for auditors, so they will be compliant. If your explanation is more than a couple of sentences you are probably including too much. If you submit something and they need more information, they will ask. When I was purchasing my home, they asked why I missed 2 months of wages and I said, " I missed 2 months of wages because I was on maternity leave" - That's it.
You are the smartest woman on TH-cam....Very professional and helpful!
Thank you, I appreciate your support.
I agree. 🎉 I learned so much from you during my home buying process. Thanks.
Your Loan Officer and Real Estate agent should tell you this.
@@koko-zy8xd they did, but it was just easier digested from Shaheedah.
Facts!!
I’m under contract for new construction. This video was super insightful.
Thanks for watching!
I’m literally going through this right now and lowkey freaking out 😮💨😮💨😮💨
You will be ok😊
One tip I have concerning item number 3, in regards to always paying your credit cards on time: I have all of my cards set up on the minimum auto payment every month, so they are all good in the event that I got busy and forgot to send in a payment. I end up paying them all down as I use them throughout the month, but that is just a good thing to have in place, just in case, so there are no mistakes :)
By the way, I love your videos and I am looking into learning how to do what you do! I'm going to be moving into another state and I want to switch careers.
Great advice! There is a link in the description if you are interested in getting your real estate license online - best of luck and thank you for watching.
After the bank appraisal (, which matched the purchase price,) and inspection I got a mortgage approved months before the contract date.
With no explanation, at the last minute, the bank decided I needed to put 30% down instead of 20%.
My lawyer said there was nothing I could do. There was no time to get a loan from someone else. Luckily I had the money.
It taught me that a bank approval means nothing.
😮😮😮😮
I experienced the overtime thing firsthand. They were fine with it but they wanted a letter from my company stating that I had guaranteed overtime same hours every week. Luckily, that was actually the case so I was able to get approved.
Do happy it worked out for you, thank you for sharing.
Buying a townhouse…….I am so grateful for your videos!!….THANK YOU…..you are absolutely the very best!
Thanks so much. Thanks for watching
First I want to say thank you for all your knowledge. I have been binge watching your videos for months. My loan is about to go to the processor and I am silently having panic attacks.
No panics, you will be fine! Congrats in advance. Thanks for watching and bringing me along on the journey.
I made a $7000 deposit the night before closing and they denied my loan in underwriting until i explained where the money came from and showed them the receipts for the transaction from Paypal. So, that is DEFINITELY a must not do. I had to wait and close 5 days later because of that. Loan Officer did not mention that to me.
Thank you for sharing! Congrats on your new home.
My lender aint 💩
@@losheroes6076 who is your lender?
@@kahnsealable im in nj
Video was a wealth of knowledge. Thank you so much!
You're very welcome!
So basically you should not change anything once your buying a home at all.
Basically - lay low and be super responsible financially until you have the keys in your hands!
Yes. Lay Low Basically
Your videos are professionally done in all aspects. Your deportment and the way you present. Big up!
@claudettealexander5204 Thanks for watching!
Avoid Costly Mistakes by Buying My First Time Homebuyer Masterclass and Digital Confidently Closed Handbook - bit.ly/47s4pT7
This is why I have credit card payments on auto pay even though I'm paying them off every month. I could get busy or sick and miss a payment if it is manual. If you're able to do this, I highly recommend it.
Thanks for watching and for sharing.
Good stuff! Thanks for another great video! I “confidentially closed” on October 14th all because of you and your GREAT videos! Thank you, thank you, thank you!
Thank you so much!!! Congratulations!!
Shaheed You look beautiful your hair is shining the peach color is soft against your skin you look absolutely gorgeous today!
Thank you so much, so nice of you!
This happened to me with the first offer was accepted. We went through the inspection process, and the appraisal. Almost literally after reviewing the appraisal report the lender called to say that the condo's finances were too risky and pulled the loan. It turned out that the condo staff filled out the information incorrectly stating that over 50% of the tenants were behind on their condo fees (this was untrue, but the staff misread the condo questionnaire). Thankfully we exercised the finance contingency that allowed us to pull out before being fully committed but that was extremely traumatic. The realtor said we could possibly still find a lender to close on the date but we'd have to move insanely fast and it was bordering on impossible given the red flags with the condo management, the finances. In this case, it was a blessing in disguise and we walked away.
Major kudos to you and your channel, Shaheedah. I've been watching your videos when I started the house hunting process and even after I closed on my home. Your videos are super informative, levelheaded and easy to follow.
Thank you and thanks for supporting my channel! I appreciate you sharing and congratulations on your new home😀
Did the condo managerment reimburse you on your inspection and appraisal money. For their f up??
@@losheroes6076 Nope. It was just money wasted. The only good thing was we got our deposit back at the end of the nightmare. Definitely pay attention to the contingencies you have available. In the end it was a good thing since we now knew what financial hell that condo was in (and more importantly how incompetent the condo management was).
@@eliphs11 thats bs smh
@@eliphs11 I just had the same problem....so heart breaking!
I had a heck of a time buying my current home. My income was primarily from pensions and Social Security (to the tune of 5 times the projected PITI of the loan) with NO debt. My housing ratio was under 15%. What was the problem? On the application I disclosed a side business I had and asked them to disregard that income, as I had sufficient permanent, provable income without it. A single deposit of $500 from this business to my personal bank account almost sunk the application! I still can't believe the pile of paperwork I needed to prove the legitimacy of a single $500 deposit when I had provable, permanent income of over $5,000 per month.
Thanks for sharing. That's useful information for someone out there!
the more I learn the more disappointed I am with this entire wealth/monopoly process. I'm not going to give up, because Salary alone just isn't enough today, but it's incredible what the real world "American dream" entails. It's a certified nightmare.
How much were you preapproved for ?
@@d_lourenzo The mortgage was $50,000, it was paid off in 3 years.
Typically that should be backed off on your asset. Were you short of $500 for funds to close? If it is needed. Thats when pile of documentation must be needed.
HI MRS. HILL I JUST JOINED WATCHING YOUR VIDEO ME AND MY HUSBAND ARE THINKING OF BUYING OUR FIRST HOME THANKS.
Awesome and welcome to the channel - all my videos will help you with the process, watch this video...I recommend that you get approved to see where you stand. th-cam.com/users/liveJ_SlmyUcjvU?feature=share
I greatly appreciate your videos. We got everything verified beforehand when we bought in 2022, and it was a blessing. We also had different lenders pre-approve us for different amounts and different rates. We decided to go with the builder’s lender because rates were starting to go up and they had the best incentives and rate so we switched two weeks in to a 30day closing deal. It was risky and delayed our closing by 7 days.
Thanks for sharing!
All facts!! My lender called my employer and manager on the DAY OF CLOSING to confirm. Lol
Yes... let then know! Congrats on your closing
Girl thank you! I literally just changed my employment ( because it’s more money that will come in for my bills and mortgage) I am a veteran with monthly compensation but I let my lender know like asap
Yes, is shouldn't be a big deal but its a good idea to check. I had a client take a job making more money but it was a contract job and they made him wait another 6 months or until it became a permanant position.
@@ShaheedahHill ok thanks for the info, this is a permanent position, I close December 10 and wanted to catch it way ahead of time, thank you 😊
I was wondering about that too. What happens if you take a job (in the same industry) with more money.
@@NYCAppl3 That should be fine just make sure it is the same compensation type that they pre-approved you for. W2 to W2, if its a 1099 job speak with the lender first.
@@ShaheedahHill gotcha, thank you 😊 👍🏾
You're such a beautiful great teacher
Wow, thank you!
Hi Ms.Hill
I have been following you several for months your videos are very educational. Thank you for sharing your knowledge on homeownership!!!
Thank you so much for watching. I appreciate the support!
I'm getting denied because the taxes on a property I sold 7 yrs ago is still under my name and the current owner, I did not know that before getting under contract! This issue affects my debt to income as they assume that other house is still my debt
You should be able to get that worked out with the title company or closing attorney. Best of luck and thank you for sharing.
@@ShaheedahHill I reached out to the title company and I got a HUD1 document from them that shows the name of the sellers (I was a cosigner) and the buyer, but that didn't work thru underwriting. I also sent a document from the bank where it proves that the loan was paid off, but that didn't work with underwriting either
I remember when working for QL I had clients that needed to show source of payments for large deposits in there accounts. The underwriters requested the bank statements of the person lending/gifting and also needed a letter stating it to be a gift or loan
Thanks for sharing
Yes... Do I need funds on reserve?
Have an appraisal contingency in case mortgage will not lend due to appraisal not being high enough.
Have a finance contingency so offer is contingent on approved mortgage financing?
Find out how many homeowners insurance claims were filed on the house because if there were a lot of claims filed then that can cause a higher home owner's insurance price for me
Most mortgages do not require funds or reserve. I find that may be needed with borrowers with lower credit scores. Thanks for watching!
We're moving 2 hours away. We're under contract and the closing is due in 11days. We're Already done with appraisal and inspection. Both me and my husband work from home, he works for an insurance company and his employer was able to verify that information to the underwriter. The issue now is with me since i'm a Hairstylist and self-employed, working from home. I sent out about 5 letters already, explaining that i got must of my customers online by posting my work on social media to get clients. But the underwriter is still not convince that i will be able to continue to get clientele where i'm moving 2hours away. At this point we don't know what to do.
In one of the letter I even mentioned that sometimes i travel to my customer. I also have customers from out of state that come to me. Now they're saying they don't see travel expenses reduction in my past taxes report. And they want more proof of me traveling to my customers. Which I don't have because I travel by car when I go to my customers. I'm not clear what they really want from me , cause if it's past plane tickets receipt I don't have it. This is so stressful I can't even sleep.
This is a difficult one, ask the underwriter or loan processor what would satisfy them to keep this loan moving forward. Many times in the letter of explanation they just need to have it on file if they are audited. Maybe you can go to you former clients and ask them to book with you for the upcoming months, showing that you still plan to service them. But lean on the loan processor to see what you can do to satisfy the underwriter. Try not to stress...you will get past this.
@ShaheedahHill Thank you. I already sent 10 names and phone numbers of some clients that I know live 30 minutes to where I'm moving. They said they're not going to call my clients. They need something more convincing and proof that I used to travel to my customers. Now, I sent receipts of some cars that I rented on Turo in the past months for personal trips. hoping they will accept them as proof that I rented those cars to go service my customers.
I'm going to try the booking ahead method as well with my customers. I'm praying for the best outcome.
But logically, I don't see why me working from home as a hair braider since 2018 should be an issue. Since I am not moving away from a physical hair salon, I work home, and my customers either come to me or I go to them.
I read he law only says you should not move 60 miles away from your job location, but my job location will be my home it seems like the underwriters doesn’t see things like we do.
Thank you for answering. I will live an update if anything changes.
Didn’t know some of these were a concern. Scary! Thank you for this!!! Went to check my credit car payments messed one by 2 days! Thought was on auto pau
Thanks for watching!
Im about to go under contract on a Co-Op in NYC. thank you for the info🙂
Congratulations!!!
I want to purchase a home outright because this is too much 😭 smh!
Right!😂😂😂
I am soon to retire from the military. My mortgage lender asked me to submit a letter from my command confirming my retirement pay and when it begins. I hope that suffices.
Sooo informative!!! Going through this now & had many of these questions... thank you for the answers!!!
You are so welcome!
This was soooo helpful! I’m going through NACA and close to pre approval so I’m trying to get as much info as possible about the home buying process.
Absolutely helpful!
I just closed with NACA a couple of weeks ago!!!!! This channel was helpful throughout the process.
@@latoyaljohnsonify Congrats on your new home!! I’m glad to know I’m on the right track with these videos because they’re helping me calm my nerves by learning more.. lol
Thank you for this valuable information! This is very, very scary! But I need to be organized 2022 and have myself more organized than ever
Thanks for watching
Don’t get caught up in my loan is approved. It really does not mean much. Loans become unapproved at the last minute such as someone goes out and buys something on credit. The day of closing a new credit report will be pulled. There better not be any new accounts. Heard once of a person who walked into closing and announced she was just laid off. Closing is done due to unemployment.
I heard a horror story of someone using a new credit card to buy furniture and got their loan denied. Scary stuff
My loan was recently denied because the home association didn't want to answer the questionnaire, specifically the deferred maintenance question and this was in Connecticut. So heart breaking!😢
This is very unfortunate, but maybe you dodged a bullet, if they are not willing to disclose what is going on, was it a townhouse or a condo?
The lender can also pull your credit the day of closing. It happened to me in 2006
Yes, they can. Thank you for sharing.
Even though i'm buying a manufactured home this info is still helpful. Thank you! 😊🌸
Thanks for watching!
Student loans being in default stopped us and we didn’t know that was a real issue!
If you become disabled. Your student loans will be forgiven
Thanks So Much @Shaheedah. You’re A Jewel! I’m considering buying a home and this and all of your other videos have given me just what I need! Thank You Again!
You are so welcome! Thank you for watching!
@@ShaheedahHill I must confess I watch your videos over and over and also I share them with my little sister who is also in the market for buying her first home. We joked last evening saying gee we wish we could have you as our Realtor!
@@g-mawof5310 Thank you, I appreciate that! Please join my first time buyers Facebook group as well if you are on Facebook. Link is in the description.
Great video. I have student loans that don't have to be paid until 2023/2024I plan to buy A home next year. Is thIs a disqualifierb
Before I start paying that my car loan will end so no over lap in to finances
I didn't realize that i could do a mortgage under writing prior to being under contract.
Yes, you can, not all lenders do it but some do... you have to ask
I enjoy the information you give on your channel. Keep up the good work ... cheers
Thanks so much!
Thanks for this video I'm currently under contract and I'm so nervous that something will happen... my appraisal is due back today I'm just praying I'll have answers soon buying a home can be stressful
Im sure you will be fine. Congratulations on your new home
@@ShaheedahHill appraisal came back worth more and no needed repairs so excited 😀
@@shonteehargett6932hope you got your house ❤️❤️❤️
Closing this coming week! I’ve been cleared to close by the lender just waiting on a few repairs then we are good to close! At this point, will y hey check my marital status ie check marriage license or divorce records etc.
Probably not, congratulations.
@@ShaheedahHill Thank YOU !
Thanks for sharing all the information concerning homeownership…May your real estate business prosper abundantly.
So nice of you @marcusmarkus3266 Thank you for watching
I am so glad I found your channel.🙌 I had no idea and I am looking to purchase in the next couple of months.. Thank you so much!!!
@blackgurl269 Thank you for watching and welcome!
I absolutely love the advice that you give on the home buying process. I cosigned on a auto loan 6 years ago, and the car w a s repo'd. Can you provide advice on what lenders require when there is a deficiency balance on a car loan?
It really depends on how much it is currently impacting your credit score. The older the debt is the less it typically impacts you.
Thank you so much! Good info! I’ve started the process of purchasing my first home; I’m waiting on my pre-approval from the underwriter 🤞🏾🙏🏾
Thanks for watching and congrats!
Condition of property per appraisal is another reason for possible denial. Can lead to some properties being deemed as not financeable by underwriting.
So knowledgeable. Thank you for sharing.
My pleasure! @user-rt9ps3iy5h Thank you for watching
Thank you for the additional information. This will help me.😬
Thank you. I have a IRS payment plan I didn’t disclosed and I’m in underwriting..just did and will get them a copy of my scheduled payment…😬😬
hey what did they say about you irs payment plan i'm in the same boat it doesn't show on my credit report but i pay it with my debit card every month
@@cryptodirect I had to send the the letter they mailed me or you can print something from your IRS account online with the monthly amount.. they want to see the amount and duration of the payment plan.
I’m on the same situation. I didn’t disclose it but I pay it monthly with my credit card and just pay it right off. I don’t have any tax liens so I wonder if they will even know 🤷🏽♀️
@@ChelseyRivers Did they end up finding out
What if it’s an investment mortgage where no income verification is necessary -especially if you have a few hundred thousand in the bank and have top tier credit.
For these types of loans, they will likely deny it based on insufficient savings - you need to make sure you have the down payment and if they calculate the rent will not cover monthly expenses.
I'm about to start my hb journey but I like where I'm currently leasing I would love to purchase and remodel, the homeowner wouldn't mind selling it to me.🤞🏽
That would be great, approach them as soon as possible with the idea and see if their mortgage is assumable. Here is a video on that - th-cam.com/video/FBs7_RwW2hk/w-d-xo.html
Thanks for making your videos its very informative ❤
Thanks for watching!
@@ShaheedahHill I'm staying tuned because I'm not feeling too good about the housing market
I am a Claims Adjuster Independent Contractor. Prior to becoming a contractor I worked as a claims adjuster for 23 years for various companies. I made more money in 3 months as a contractor than I did in 6 months being a staff adjuster for a company I doubled my salary! Why is being a Contractor such a problem when attempting to buy a home?
Because lenders see any contract work as unstable and many require 2 years in the contract position to determine what your income will be in the contract role...since now it can fluctuate vs. when you were on a salary it was predictable.
That scenario you just mentioned is exactly what just happened to us. We are less than 1 month from closing and 1 missed credit card payment dropped my husbands credit drastically! We were just fine until that news. Is there anything we can still do to save this deal?
Don't panic, speak to your lender. If you can get the credit card payment applied and if the credit card company can agree to remove it, the lender can pull your credit again before you close.
Well explained. Thank you so much.👏👍
@naturegirlbb100 Thank you for watching
I am under contract to build a home through FHA. I had a load charge offed 4 years ago and I just checked my credit and see it has been deleted. If it has been sold to a collection agency how can I find out and contact the agency to settle it before it is reported to the Credit Bureau.
If it goes to collections it usually shows up on your report within 180 days, so I am not sure how you will be able to know if it will show up since it has been 4 years. Ask your lender to see if they have any advice for you. Thanks for watching.
Loving the education. Thank you
Thanks for watching!
Wish I would've saw this when I was in underwriting 2 months ago. I stupidly took out a loan and almost got denied smh. Thankfully I was able to close.
But you made it that is the important thing. Congratulations on your new home! Real Estate professionals, agents and lenders need to do a better job making sure buyers understand this. Thanks for sharing and watching.
How were you able to still take out a loan and close?
@@tiffanyreign the underwriter called me and told me I had to provide the exact same money in cash to cancel out the money I withdrew. It could only be a non refundable gift from someone. So I called my dad and asked him to give it to me and he did (even though between us I paid him back). I have been living in my new house ever since then. It really helps to have some sort of support base. I know that's a basic concept in life but I really saw how important that is. I'm in my 20s so of course I foolishly thought I knew everything and tried to do everything myself. It was a valuable lesson.
@@FateofFallacy I agree with having some sort of support base. Buying a home is excited and extremely stressful at the same time. I’m in my 20’s as well and could relate. Glad it worked out for you enjoy your new home! & thanks for your response!
I literally applied for a Discover Credit card before I was pre-approval on a loan. First time, credit owner
@oshynclair7592 Thank you for watching and I hope it didn't impact your approval.
@ShaheedahHill No Ma'am.. Just when the lenders pulled my credit within 4 days ,time period
Great 👍 information and right on point. I'm in underwriting now...they go through every bit of information..I mean every bit. I'm approved with conditions. Working on my conditions now. Just received my payment for the appraisal. I have to start looking for quotes for home owners insurance.
Way to go! You are almost there!
How did it go did you get in your home
My credit score is good got pre approved for mortgage was at closing got denied because of no payment history why didnt they tell me that in the beginning
It is very unusally that this would come up at closing. Make sure the next time you apply you go through underwriting ahead of time.
@@ShaheedahHill how do I do that I went through Michigan first credit union
@@warrenross56go thru a verified pre approval instead of just the standard pre approval. That way they will verify your income, assets and credit upfront. I hope this helps🙏🤍 I am also in the process of buying my first home. My husband and I are currently in contract 😀
Thank you for all of your videos!!
What deposit amount does the underwriter not question. Example $400.00 and below.
Does a rule exist in regards to this?
Yes, usually 25%-50% of your normal monthly income would be considered large. However, if the deposits happened over 60 days ago, it likely would not matter, they consider that seasoned. So if you plan ahead you usually don't have to worry. Here is more information, thank you for watching. mymortgageinsider.com/large-deposits-bank-mortgage-application/
Hi Shaheeda! I'm very worried as my husband and I are about to enter the underwriting phase. In fact, I'll email you my concern. I'm just not too sure if it's touchy.
Here is my underwriting video, this may help with any worry - th-cam.com/video/Oi1YCSLZwK8/w-d-xo.html
Thank u thank u
I sure would like to talked with you, my husband and I are in a dilemma right now what we tried to buy a house we got approved for the house pay all the fees we needed to pay had a date set for the closing in the underwriter at the last minute said she was not going to sign the paperwork, they gave us our earnest money back but we lost out on all the rest of the money and we had a VA loan we do not know what went wrong can you help we are thinking about suing the realtor company in the underwriter. Help
What reason did the underwriter/lender give for not approving your loan?
My husband and I were under contract, paid for private inspection, had dates for walk through and closing on 3/31 but were all of a sudden denied due to his type of employment as a contract worker (permanent position). We were very upset because we told the lender everything up front and provided everything that she requested. She never mentioned that his job would be a problem. Nevertheless, are there lenders who will accept this type of employment?
Yes, but they will require my paperwork than a W2 worker. You need 2 years of tax returns with his income and usually profit and loss statements or 1099s from his business. Next time try to go through underwriting first and use a lender that your agent recommends. You need someone that does business loan approvals/ 1099 loan approvals often. I am sorry you experienced this. Thank you for watching.
What about transfers in and out of bank from friends for paying back of borrowed money, around 400-900$ of Zelle payments? Is that ok?
You will likely have to explain anything over about 10% of your monthly income, in and out of your accounty in the last 60 days. @Banana69999 Thanks for watching!
Avoid Costly Mistakes by Buying My First Time Homebuyer Masterclass and Digital Confidently Closed Handbook - bit.ly/47s4pT7
So adding a 2nd job to your already pre-approval stage with 1 job, won't hurt right?
No, it shouldn't but let your lender know you have income coming in from a 2nd job if you plan to use that income for your down payment and/or closing costs. The lender has to know the source of all funds.
@@ShaheedahHill 💝🤑🤝🏾Thank you so much for your response🙏🏾
Awesome! Thanks!
Thanks for watching
Can you do a video about how to get around if possible if youre trying to by a house that youre going to live in but its a little distance from your employment. Would you get denied for that as well? My husband and I live in nyc and are trying to get a house in PA but its 2 and a 30 from our jobs. Would we get denied?
Talk to your lender ahead of time and explain that you will be commuting back and forth, and you will not own or rent any other properties, since many people use mass transit in the Tri-state area and live farther away from their jobs, there are usually exceptions. But you need to see ahead of time the documentation or evidence you will need to prove owner occupancy to get a lower down payment and lower interest rate. @nancyramos7977 Thank you for watching
Just Subscribed to your channel 😊 you are amazing 🤩 glad to be here 😊
Welcome to the channel!
Thanks..very informative..you brought some things to light for me…
Thanks for watching!
Very clearly explained.
What if you got a loan in the pre-approval stage? I'm currently in the under writing stage. It hasn't shown up on my credit report, yet? Thank you🙏🏽
They will likely run your credit again before closing, please watch my underwriting video. th-cam.com/video/Oi1YCSLZwK8/w-d-xo.html
Ty kindly and love you!!
Thanks for watching!
I have a charge off on my credit report. Can this effect buying a home
Yes, possibly. It depends on how much it is impacting your credit. Here are 2 videos you should watch- th-cam.com/users/livecpewL4OlpjQ?feature=share and th-cam.com/video/V4tXzos8GmU/w-d-xo.html
I forgot to tell my lender that my husband is on a payment plan with the IRS. Can this cause my loan to be deny? I’m almost there and don’t want anything to prejudice the process by not providing this information.
They will likely see it when they pull the CAVAIRS report. Go ahead and let then know now, because they will likely include that in your debt to income ratio. Thanks for watching!
@@ShaheedahHill Thank You for taking the time to respond. All your videos has been AMAZING I have learned so much from all of them. You are AMAZING. Keep up the excellent job 😊
Thanks so much your info are very helpful . quick question what will happen if you're late in your card before closing and the lender tell you that you're not approved will they refund your deposit back
You do not pay your lender a deposit, but if you paid a deposit or earnest money to the seller, it may be at risk. You have to see what you contract says in terms of a finance contingency, if you are no longer approved for the mortgage. Thanks for watching
Easy to listen to and follow. Very helpful information. I was concerned about a few things you covered. Back taxes funds on hand and changing jobs, thanks.
Glad it was helpful, thank you for watching.
gift money ? What if someone wants to help out, are those funds acceptable?
Yes, but it has to be sourced and must come from family or close friends. Sourced means that they need to see it come from that person's account to yours. They will also verify the relationship.
Hi I have a quick question… my husband and I are purchasing a home and the lender is asking us to pay off two credit cards which is fine but they want us to wire them the funds and say that they will pay off the debt at closing. Have you ever heard of this? They say that this will make things look better for underwriting.
Paying of debt at closing is pretty common, usually they want you to bring a cashiers check made out to the creditor and the closing attorney or title company will mail it out to make sure it is paid. See if that is an option, with so much wire fraud it may be safer option to do it that way.
@@ShaheedahHill thank you
You are amazing women. Thank you
Hello Shaheeda. How does underwriting view creditors like Klarna and affirm? These are not listed on credit reports. Do you know?
Same as installment debt - if payment is reported on credit, that's the amount they will use. If no payment is reported, a payment needs to be documented. Anything owing 10 payments or less is not counted against DTI. Thank you for watching. If it is not on your credit report they may see on bank statements.
@@ShaheedahHill thank you so much for responding. It's less than 6 months of payments. Have a great day.
lesson learned here.i used my CC to pay appraisal i got denied.i maxed out my DTI RATIO🤦🏼♂️
You should've paid it off before the credit cards closing date so it wouldn't show on your credit.
Good lesson thanks for sharing!
Thanks for sharing, I use my credit card for the points but I will remember to pay it right off. Sorry that happened, though.
I always learn at least one thing from your videos. Thanks!
Thank you, I appreciate that!
Shaheedah gives the best advice!
Thank you Byran🙂
Great video coverage 💯 Very helpful
Glad it was helpful!
Should I pay off my car loan before applying for a mortgage? I heard that your credit score will take a temporary decline, but my DTI ratio is high.
If you need to do that to lower your DTI ratio. Please watch my video - "Can you afford a house" You credit score may take a temporary hit when you pay it off.
I’m in the process and paid off my car and my score dropped
I paid mine off 2 months before I went under contract and it only dropped 10 points
We were supposed to close on Monday but they said Wednesday
Congratulations!!!
We had to send in so much i didn't know how to scan when we started the now I'm a Pro lol
They said that i have e4 money in the Reserve so we have 24 hr left smh
Enough
Really nice home
Very informative! Some of these things I've heard of before (no big purchases) and some are new. Question: for new construction homes, how does an appraisal work in any of your scenarios? Also... same appraisal question for a USDA loan 🤔
Appraiser typically comes twice for new constructions once when it mostly complete and again when it is fully complete. USDA is a typical appraisal. If you havent already please watch my appraisal video.
@@ShaheedahHill I JUST watched it about a half hour before I saw that you posted this one 😁 Not too long ago I checked out the map/website you mentioned in it. Thanks so much for the swift replies ❤
Question: when buying a house with someone, does it matter if the money is in the same bank account or not? If the both of us have our own personal savings account should we get a joint savings and move the funds there?
No, you can just show the lender both sets of bank statements, they do not have to be in one account. Thank you for watching!
Thank you for the information!
Thanks for watching!
Excellent, excellent, excellent advice! Will you please do a video about deeds and how to ensure that you are not left off of the deed of your home during the signing process when you're buying a home with a significant other or spouse? I have heard of that happening to several people because the spouse goes behind the partners back to sign without them knowing.
The best thing to do it to get added at closing. Attend the closing to make sure you are on the deed. However, if you are not added at closing the owner can add you after pretty easily. Good question.
@@ShaheedahHill Thank you. I thought it was a done deal if that happens. I think it's terrible for a person's partner to try and get the deed without the other on it, but whenever I get married, I'll remember this just in case.
I have a question My wife was laid off from her job after we got our pre-qual for 409,000 (with contingencies of keeping the same income). this layoff happened on 6/2/22, but she has a limited-duration job that was paying the same amount as the job she lost due to layoff and will be getting a new permanent job starting 8/1/22 which makes $3 dollars less. The new build home ended up only being 392,000 (less than pre qual of 409,000) and isn't ready until 3/2023. Will that difference be detrimental? we didn't tell our LO about the layoff. I'm a little worried after watching this very informative video b/c I did put down earnest money
It should be fine, since she will be re-employed by August. You should however inform your lender. Thank you for watching.
Good information 😊
@stephanieharries7746 Thanks for watching!
Avoid Costly Mistakes by Buying My First Time Homebuyer Masterclass and Digital Confidently Closed Handbook - bit.ly/47s4pT7
Thank you great video
Thanks for watching
Hi Shaheedah if you use a 401k withdrawal towards closing costs or a down payment would that be ok because it can be proven where that source of money is coming from?
When you initially complete your application, you should disclose any accounts, including investment accounts, you intend to use toward your purchase. SInce this is an account you own, it shouldn't be a problem at all. Thanks for watching.
I love your videos. They are very helpful for me and my hubby while we are going through the underwriting process as of now, Can you do a video on how to do a letter of explanation on things on your credit report please 🙏🙏
I don't want to do a full video on it, but my best advice is to keep it short and sweet. If they are asking, for example, why you paid your bill late. Brief answer - "I was laid off and missed a payment. When I regained employment, I caught up on all of my payments" Many times underwriters are just looking to have something in your file for auditors, so they will be compliant. If your explanation is more than a couple of sentences you are probably including too much. If you submit something and they need more information, they will ask. When I was purchasing my home, they asked why I missed 2 months of wages and I said, " I missed 2 months of wages because I was on maternity leave" - That's it.