u/MandalorianBeskar

Hi everyone,

Looking for some perspective on whether I am being paranoid or if my mortgage specialist is trying to play me to increase their loan volume.

We are purchasing a property for $865K. From day one, I was explicit that we have a $550K down payment and want a mortgage around $315K. I provided all investment statements upfront to prove the funds. We also wanted a HELOC attached to the file.

Today was our subject removal date. When I asked for the final numbers, the specialist told me we were approved for a $540K mortgage. When I pushed for specifics, they told me that the underwriter had only verified $330K of our down payment due to "capacity issues" over the last 4 weeks. Because a $540K loan + $330K verified cash covers the purchase price, they just pushed the maximum loan approval through to hit the subject deadline.

They also sent this in an email:

"We’ve, according to the previous approval letter, approved you $540,000. You can choose to adjust the amount as to how much exactly a mortgage and a HELOC limit you want as long as they’re together within $540,000. But please make sure you can finalize this on or before July 10th."

They are offering a 3-year fixed at 3.99% and saying I can choose to split the $540K global limit however I want before July 10th (e.g., a $315K term mortgage and a $225K revolving HELOC at Prime + 0.5%)

My question to the community: Is this normal behavior for a big bank?

It feels like a bait-and-switch tactic to get me to accept a massive mortgage at closing because they haven't actually done the work to verify the remaining $220K of my down payment. If I don't force them to verify that cash before July 10th, I don't see how they can actually fund a lower $315K mortgage on closing day.

Has anyone else dealt with an advisor pushing a "global limit" approval while refusing to do the legwork on the down payment verification until the last minute? Am I dealing with institutional laziness or a pushy sales tactic?

Thanks.

Hi everyone,

Looking for some perspective on whether I am being paranoid or if my mortgage specialist is trying to play me to increase their loan volume.

We are purchasing a property for $865K. From day one, I was explicit that we have a $550K down payment and want a mortgage around $315K. I provided all investment statements upfront to prove the funds. We also wanted a HELOC attached to the file.

Today was our subject removal date. When I asked for the final numbers, the specialist told me we were approved for a $540K mortgage. When I pushed for specifics, they told me that the underwriter had only verified $330K of our down payment due to "capacity issues" over the last 4 weeks. Because a $540K loan + $330K verified cash covers the purchase price, they just pushed the maximum loan approval through to hit the subject deadline.

They also sent this in an email:

"We’ve, according to the previous approval letter, approved you $540,000. You can choose to adjust the amount as to how much exactly a mortgage and a HELOC limit you want as long as they’re together within $540,000. But please make sure you can finalize this on or before July 10th."

My question to the community: Is this normal behavior for a big bank?

It feels like a bait-and-switch tactic to get me to accept a massive mortgage at closing because they haven't actually done the work to verify the remaining $220K of my down payment. If I don't force them to verify that cash before July 10th, I don't see how they can actually fund a lower $315K mortgage on closing day.

Has anyone else dealt with an advisor pushing a "global limit" approval while refusing to do the legwork on the down payment verification until the last minute? Am I dealing with institutional laziness or a pushy sales tactic?

Thanks.

Hi everyone,

Looking for some perspective on whether I am being paranoid or if my mortgage specialist is trying to play me to increase their loan volume.

We are purchasing a property for $865K. From day one, I was explicit that we have a $550K down payment and want a mortgage around $315K. I provided all investment statements upfront to prove the funds. We also wanted a HELOC attached to the file.

Today was our subject removal date. When I asked for the final numbers, the specialist told me we were approved for a $540K mortgage. When I pushed for specifics, they told me that the underwriter had only verified $330K of our down payment due to "capacity issues" over the last 4 weeks. Because a $540K loan + $330K verified cash covers the purchase price, they just pushed the maximum loan approval through to hit the subject deadline.

They also sent this in an email:

"We’ve, according to the previous approval letter, approved you $540,000. You can choose to adjust the amount as to how much exactly a mortgage and a HELOC limit you want as long as they’re together within $540,000. But please make sure you can finalize this on or before July 10th."

They are offering a 3-year fixed at 3.99% and saying I can choose to split the $540K global limit however I want before July 10th (e.g., a $315K term mortgage and a $225K revolving HELOC at Prime + 0.5%)

My question to the community: Is this normal behavior for a big bank?

It feels like a bait-and-switch tactic to get me to accept a massive mortgage at closing because they haven't actually done the work to verify the remaining $220K of my down payment. If I don't force them to verify that cash before July 10th, I don't see how they can actually fund a lower $315K mortgage on closing day.

Has anyone else dealt with an advisor pushing a "global limit" approval while refusing to do the legwork on the down payment verification until the last minute? Am I dealing with institutional laziness or a pushy sales tactic?

Thanks.