Loan

I would like to make it easy for you when you decide to buy your first home or possibly just buying a new home. One very important step is being ready when you decide to make a Mortgage Loan application. Know what to expect and what you need to carry with you to your financial institution. Here is my advice and help. Please note, there could be other necessary documents, depending on your situation, but these are the initial ones:

Loan Officer takes the loan application (face to face, by phone, mail or fax).
Loan Officer gives the borrower a list of documentation needed on the file in the first conversation.
At a minimum the following documentation must be obtained:

One month of pay stubs i.e.: (2) for bi-weekly (2) for bi-monthly (4) for weekly
Two years W-2 statements
Employer information must be provided to include phone and fax # and address i.e.: if lacking 2 year history, prior employment should be provided
Rental or Mortgage Information **if the mortgage is not on the credit report.
2 months bank statements or full bank information to request the Verification of Deposit. **Bank print-outs will be acceptable if they are stamp, signed and dated by the person at the Bank. The average balance must be in line with the balance for the past 60 days or the source of the increase in the account will have to be documented and explained **if a full doc loan and assets must be verified. A paper trail is sometimes needed for source of funds…meaning if you sold a marketable asset such as a truck. You would need to provide the book value, bill of sale with the name of the buyer and phone # and ownership evidence, the title, and you would have to provide a copy of the transaction meaning a copy of the check, and deposit into their account….
Contract for purchase with all pages, with any seller paid cost and/or repairs.
Appraisal Fee. Must be paid at application before appraisal is done.
Self-employed…Two years 1040 tax returns required with W-2 attached, if there are any W-2 wages and all other schedules to include the K-1 forms for Partnership income and/or SCorp. Also, if there is rental income, schedule E must be included in the 1040 tax returns. **From time to time, depending upon the situation, you may need to provide the Partnership returns, Corporate Returns and SCorp Returns.
You should be told that you must provide evidence of Hazard Insurance prior to closing and Mortgage Insurance with LTV > 80%
Pro-rated property taxes for the year should be explained

This is not all inclusive as stated but this is a very good start. My articles are aimed at making life easier for you and help you avoid the “I do not understand”, part. I will help you see that there can be scams in almost everything, if you are not careful. Please, always ask questions, get answers and provide what is needed to get your loan closed.

Linda Todd

I have worked in Mortgage Lending for 30+ years. I have worked for some of the Major Lenders and there are so many experiences and opportunities I have had. I worked for FHLMC “Freddie” in a time before the Industry made the changes that brought about the downturn of the our Nation. I do not believe this was any one person’s fault, it was due to change in guidelines and the overall attempt to “incorporate” if you will, the policy that “EVERYONE ” DESERVES A HOME!

I have seen the good, the bad and the ugly! I have seen sadness because even though we all deserve a home, not everyone can afford a home. Sad but true. The downfall was giving people what they could not afford to begin with!