Looking for advice

vanity | 09-05-2011 | Chuckles

[chuckles]

I am in the middle of refinancing my home. I expect an answer this week. The problem is, the mortgage company seems nervous about my income. I live off trading stocks and options in a self directed IRA. I have little or no income otherwise. I am borrowing about 3/4 of what the house appraised, so the payment will be within $20 of what I'm paying now. I have an 800 credit score. They have contacted me twice about proving my income. They have asked for my 1099's and my 1040's to prove my income. I explained to the person assigned to my case that I just take out the money I need to pay my bills and transfer that to my checking account. She kicks the info to the underwriter and they kick it back asking for more info. I tried to explain to them if they need another $5k income to approve me, let me know and I will withdraw anther $5k-10k and pay the tax on it, but that seems to not compute if you are retired without a steady income. I have over 3 times the amount I'm asking for in my IRA so they are covered there and the house appraised for well over what I'm asking. I can't imagine what they are worrying so much for. I take out whatever it takes to pay my bills so hypothetically, I have almost unlimited income. If I need $50k to live on, I take that out, if I need $40k, I take that out. it just depends.

My question is,.....If they refuse the loan, what are my options? I want to refinance with the rates this low and may use the money to buy some acreage because raw land charges more interest than a home mortgage. Either way, I want the loan for the lower interest. I don't want to resort to a lawsuit, but I don't even know if they have to loan the money unless I'm a minority.

They may make the loan, but it just seems like they don't want to and I want to be ready if they don't.

[CGASMIA68]

Do yourself a favor

search and go to morningstars forums or bogelheads forums

[chuckles]

Back before the crash, a friend was trying to sell his home. The realtor called and said he had a buyer. About a week later, the realtor called and said their was a glitch. The buyer gave a bad Social Security number. They asked him to come back with a working SS#. He offered another. No good. He tried one more then went back to Mexico. No arrests, No nothing. BATF probably sent him back with a gun.

If he had just stolen the right number, some bloke might have a house repo on his/her FICO without knowing. I heard there was over 250k of these in Colorado alone. Just imagine the other states also. This happened about the time BAC was in the news about credit cards going to illegals. Guess who's in trouble now?

[chuckles]

Just FYI,.....I was approved today. I was surprised, but I had to explain to the underwriters what I did to pay my bills with my IRA. There was a lot of silence, but I think they finally got it. Thanks for the advice.