We have applied to a major bank (we already have a home loan with them on our existing residence) to buy a primary residence in another state. We plan to sell the existing home. We have good credit (800+ credit score), no other debt, and a long positive history with this financial institution. We have fully documented our income stream, source of funds, and ongoing cash flow. We could pay cash for the new home, but think it is better to finance, at least until the other home sells in order to preserve capital for unforeseen needs.We have already paid in advance for a $650 "loan app" fee, and $500 for an appraisal. The underwriter is now asking for extremely personal information, including demands for documentation of our detailed investment holdings (not just the account balances), documented details of recreational club memberships, and even a written letter explaining our regular payments to our lawn maintenance guy. We are feeling very uncomfortable with this very intrusive process. Is this normal? Legal? Should we back out and seek financing elsewhere at a lower rate? Just forget it and fork over the cash?FW folks, we would really appreciate your kind advice!! Thanks and God Bless.