Lender is asking for the closing disclosure of the current property

Seeking Advice
1

The Lender is asking for the closing disclosure of the current property. Is that normal ask from the underwriter ? what could be the possible reasons for this request ?

2

Underwriter likely thinks the sale is source of funds for your new home purchase.

3

Phoenix said:
Underwriter likely thinks the sale is source of funds for your new home purchase.

So what kind of information he is needed from the CD

4

Jalen said:

Phoenix said:
Underwriter likely thinks the sale is source of funds for your new home purchase.

So what kind of information he is needed from the CD

The cash you received as a result of the sale to prove you have funds to close.

5

@Charlie
I am not selling my current property

6

Are you buying a home contingent upon your current home selling? This is needed to verify the debt can be excluded from your liabilities.

7

Zara said:
Are you buying a home contingent upon your current home selling? This is needed to verify the debt can be excluded from your liabilities.

No selling the current house but will rent it out

8

@Jalen
Something got marked incorrectly then on your 1003 loan app or was not clarified by the LO to processing team who they hand it off to once the loan is locked and disclosed. Send them an email you’re not selling the house. It may affect your DTI ratio

9

@Dalen
Thanks for your answer. Can you please clarify what does it mean the loan is locked and disclosed?

10

Jalen said:
@Dalen
Thanks for your answer. Can you please clarify what does it mean the loan is locked and disclosed?

I’m sorry I guess I didn’t try and clarify. Are you under contract to buy a new home or just in the preapproval process? Loan locked means you have agreed to an official interest rate commitment with the lender that will not change. Disclosures are paperwork sent to you to sign electronically outlining the complete terms of the loan fees, closing costs, payment, etc.

11

If it were a va loan they might need it to restore entitlement.

12

Jory said:
If it were a va loan they might need it to restore entitlement.

Not va loan

13

This is 100% normal in order to source funds and ensure you have enough to close if selling your current home.

14

Axel said:
This is 100% normal in order to source funds and ensure you have enough to close if selling your current home.

How? the lender is ask for closing disclosure of current property. The funds is coming from bank accounts

15

@Jalen
Then the underwriter screwed up. Tell your lender you’re using your own funds and keeping your current property. They will have to factor in the property you’re retaining into your DTI.

16

If that’s how the loan was set up…not counting that mortgage against your DTI then they need the CD to show the mortgage was paid off.

17

Nova said:
If that’s how the loan was set up…not counting that mortgage against your DTI then they need the CD to show the mortgage was paid off.

Mortgage wasn’t paid off completely on the current property