How To Save Yourself From a Frustrating Experience

Alliance Direct Home Mortgage

Getting a Home Loan

The list of documentation to qualify for a mortgage has steadily risen over the last 3 years. Banks and investors are asking more questions and need verification for the answers to those questions. This may seem like common sense to many of you reading this, however I am seeing and hearing the frustration of borrowers on The Front Line.

What's Happening

One example of a common document requirement is for clients that own their own business. Banks will often times require the corporate returns for those businesses and sometimes even business license. If you own rental properties or second homes, be prepared to supply the mortgage and tax information for each of those properties. Also, the amount of disclosures that are required to be signed by the client has increased. Often times the originator and the investor will both supply disclosures (at different times) with loan terms and fees. The very basic requirements include the last 2 years of tax returns, 30 day’s worth of pay stubs, homeowner’s insurance information, 2 months of asset statements, drivers license and social security card. This list can sometimes go on.

The Process

Your loan officer needs to spend some quality time with you in the beginning of the loan process and complete an application (called a 1003 in our world). The questions range and will seem like you are baring your sole to a stranger. A complete application will give a good loan officer a fairly good sense on what will be needed to package a strong loan file to an underwriter. When we submit a full and complete loan file to an underwriter it will answer all questions, and not leave any stone unturned. When underwriters have questions, they need documents to supply answers.

In Conclusion

To summarize, the document requirements are not going away. We must accept that when banks lend hundreds of thousands of dollars they are now going to want verification that they will be paid back. Instead of fighting this phenomenon, borrowers must work with the industries best and brightest loan originators. A true professional originator will ask the right questions, be able to read and understand your tax returns, and qualify you with the products and pricing that is available on the market that matches your goals and objectives. The loan officer is on your side so be honest and upfront with your scenario and particulars and it will save you time, money, and frustration through the process.