Be Prepared for Mortgage Application

Be Prepared for Mortgage Application

Thinking about Buying a Home or Refinancing soon?

Read on and be better prepared when applying for your new Mortgage ...

The news and blogs are currently filled with stories regarding the huge and sometimes overwhelming demand for documentation during the mortgage lending process. Much is presently being made of the number and kind of requests being made for proof of finances, payments, credit, and more by lenders and their underwriters during the processing of loans.

I personally don't see these requests disappearing or even lessening in number anytime soon. It's also my opinion that argument or protesting these requests is a waste of time in the majority of cases. Compliance is typically the best route and the sooner that is achieved, the sooner you move forward in the processing of the loan.

To hit the floor running during the application and processing portion of a transaction, I like to educate my clients in advance as to what the typical expectations for documentation will be for their mortgage loan. I warn them that it HAS become the "norm" that they will have to produce more documentation than typically required in the past and as we proceed through underwriting.

Without trying to scare a client or put them on the defense, I also make my client aware of my personal opinion regarding our approach to these requests and its effect on the expediting of their approval.I have this Mortgage Application List set-up so it can be viewed, enlarged, then printed by clients as a convenient reference while working towards their loan application, then approval.

My Mortgage Application List reads as below:Information and Documentation Required Upon Application of Mortgage LoanBasic Information

1. Last 2 years W-2's and Tax Returns.
2. Last 30 Days consecutive Pay stubs.
3. Name, Address and Telephone Number(s) of Employers for past TWO (2) years.
4. Most recent Two (2) months Bank Statements (all pages) or 60-Day printout of accounts from the Bank that is stamped and signed. (Including 401K, Credit Union, Profit Sharing, etc.)
5. Copy of Social Security Card(s). (FHA/VA only) & Driver's License (all Borrowers).
6. Name, Address and Telephone Number(s) of Landlord or letter from Landlord stating amount of Monthly Rent and the Statement "Paid as agreed for past 12 months" (if presently renting).
7. Application Fee (See Lender for Applicable Fee Amount)
8. Signed Contract and all Riders on home being purchased.
9. Names and Phone Numbers of Real Estate Agent, Attorney and Insurance Agent.

Miscellaneous Information Needed - if Applicable:

1. Recorded Divorce Decree(s) or Separation Agreements (All Pages).
2. Recorded Bankruptcy Discharge and Schedule of Creditors.
3. Most recent Social Security Award Letter or Pension Award Letter.
4. Filed and Stamped Release of any Judgment and Paid Receipts of all Collections.
5. 12 Month Court Printout of Receiving Child Support.
6. Address and Information on any other Real Estate owned.

Self-Employed Buyers: In addition to Basic Information

1. Year-to-Date Profit and Loss Statement with complete Tax Returns. (Last 2 years filed) Veterans: In addition to Basic Information
2. Copy of DD-214.
3. Original Certificate of Eligibility.

Please note: Buyers that are Self-Employed must provide more thorough tax records and more financial documentation upon application because of the nature of their employment and employment status.

Those extra documents required are so noted on my Mortgage Application List.Note also: U.S. Veterans must also supply information pertainable to their service when applying for VA Loans. Those required Veterans documents are also shown separately from the basic required documentation upon my Application List.