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our loan was just denied can we get a second opnion?

by zulfia_569_857 from Midlothian, Virginia. Dec 4th 2012 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,654 contributions

You can shop for a 2nd opinion, but you should contact a broker not the bank.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Dec 4th 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,821 contributions

Yes, you can get a second opinion. Here are your issues. Income calculations (net income plus any add back for certain deductions) are pretty much universal, having been delegated from Fannie Mae and Freddie Mac. Unless the lender made an error, which is possible, the answer is likely to be the same from a different lender. Typically they are going to want two full years of self employment income documented with full year tax returns for two years. Unfortunately, many business owners choose to write off everything they can as a business expense to lower their taxable income. Unfortunately this also lowers their qualifying income for loan purposes. Things like auto payments and maintenance & fuel, while paid for by a salaried person with net dollars, most business write off as a business expense, lowering taxable income and lowering qualifying income. I often have to tell small business owners that the tax advice they are getting from their CPA is killing their ability to become a homeowner. Your options are write off everything and remain a renter or consider not writing off those things that are not necessarily pure business expenses and become a home owner. You should sit down with a local licensed Mortgage Banker and get some advice on strategies to get you qualified. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Dec 4th 2012
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James Mouser (jmouser)
#45 ranked lender in Virginia - 1 contribution

What were the reasons why your loan was denied? Did the appraisal come back low? Was the debt to income ratio to high?

Dec 4th 2012
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

ABSOLUTELY you can get a second opinion. Contact a LOCAL broker and have them review your scenario. There are many reasons it could have been denied and a great many more to work around the denial. Go to the find a lender tab on top and find a lender in Va. and they will help you.

Dec 4th 2012
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Danielle Small (Daniel_650_396)
#51 ranked lender in Virginia - 4 contributions

I would def. ask the lender the reason for the denial. I am a Virginia loan officer and would be happy to look into the loan for you if you would like. You may contact me at danielle@bayfieldhomeloans.com

Dec 4th 2012
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Mark Simon (mark.simon)
#9 ranked lender in Delaware - 83 contributions

Yes we can give a 2nd opinion. Give me a call and we can review the details and give you an answer today. It is not uncommon to have a lender denie a loan and have others that may have guidelines to make it work. We make a point of spotting what the issue is so if for any reason it is not possible today to give you a plan to be eligible in the weeks ahead . Mark 302-449-7373

Dec 4th 2012
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,240 contributions

Absolutely, as others are saying, whether it is worth the effort will depend on the reason for the denial. There definitely are some lenders that are more conservative than others.

Dec 4th 2012
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my husband is self employed, in 2010 income 55k in 2011 is 58k, in 2011 he was getting most income from paychecks/payroll 45k and 13k from bisiness, this year 2012 he is 20k on his payroll year to date so far he is planning to pay himself 80k for 2012 mostly will be from business icome but because we cant file taxes yet for 2012 our loan was suspended, now my question why dont they look at 2010 year he paid himself there half paychecks 27k and 28 from net income from business, so UW had to minus 18 k for the current year and that kind of brings DTI issue, should we look for a second opinion?

Dec 4th 2012
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Adrian Brown (AdrianBrown)
#5 ranked lender in Virginia - 12 contributions

I would love to take a look at your loan. I'm currently located in Chesapeake, Virginia but have loan officers in Richmond Va. Please give me a call at 757-672-6550.

Dec 4th 2012
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,240 contributions

The rules for calculating income for self employed borrowers are pretty much the set and should be the same from one lender to another. It doesn't hurt to have someone else look at it to make sure the original lender didn't miss something but they won't base his income on 2010 because that was 2 years ago. If DTI is an issue, sometimes it is possible to pay off other debt to make it work, but ultimately you may have to wait for your 2012 taxes to be available. Qualifying income is what you pay taxes on (after expenses), with a few expenses that can be added back. Sometimes they are able to use just the previous year, others the average of the past two years income. Don't feel alone, this happens to many self employed borrowers. The new rules are not very friendly to self employed borrowers who are able to minimize their taxes but can't qualify for a mortgage.

Dec 4th 2012
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Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions

it might be a issue that they are considering not long enough for self employed, since you stated that in 2011 13k from business, also, since the payroll is down, that can scare off a lender, and there is items on the tax returns that you can add back in to compensate, i am a almost a expert on tax returns, so they are seeing declining income on the payroll amounts... linda

Dec 4th 2012
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