Source: Alliancedirecthm.com 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.

1. How To Save Yourself From a
Frustrating Experience
Alliance Direct Home Mortgage

2. 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.

3. 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.

4. 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.

5. 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.