| If you are planning on applying for a mortgage loan for | | | | case of the borrower mentioned above, he did receive |
| a new home then be prepared to test your patience | | | | pay stubs and therefore it was necessary to get a |
| to the limit. In addition, be prepared to document | | | | letter from his employer explaining why he does not |
| everything. | | | | get a pay stub. A verification of employment form had |
| In defense of the underwriter of the loan with the | | | | been completed by the employer and submitted to the |
| mortgage lender, you need to keep in mind that this | | | | mortgage company which states the employee's |
| person does not know anything about you except | | | | income, raises, bonuses, etc. In addition, a pay register |
| what they get in paperwork. So, in some cases they | | | | for the required pay period was submitted from the |
| need a better explanation of your situation just to | | | | employer. This was not sufficient. |
| better understand it. In addition, they need sufficient | | | | Sometimes there will just be inconsistencies with the |
| documentation to show to another lender if they | | | | borrower's address. Maybe the borrower has moved |
| decide to sell your loan somewhere down the road. | | | | and his or her driver's license does not reflect the |
| Times are no longer like they used to be where you | | | | same address as the application shows as the |
| went to the bank where your father banked and your | | | | borrower's current address. |
| grandfather banked and the lender knows all about | | | | These are just examples of additional paperwork |
| you and your family. | | | | requirements after the loan is submitted for lender |
| Today I had to get five letters from a borrower, two | | | | approval. Just to get started there will be applications, |
| from his employer and an addendum to the appraisal. | | | | good faith estimates and a ton of disclosure forms to |
| This is for a borrower who is simply buying his | | | | be signed. Then when you get to closing you will get to |
| grandmother's house. It appraised for $137,000 and he | | | | sign all these again plus some additional forms like the |
| is applying for a mortgage of only $52,000 which is all | | | | deed and mortgage note. |
| his grandmother wants to charge him for the house. | | | | In addition, the mortgage company is gathering |
| This is simply so his grandmother can pay off the | | | | additional paper work such as the appraisal, title binder, |
| existing mortgage. | | | | flood certification, FHA case number and insurance |
| And since the mortgage meltdown it is taking longer | | | | binder to add to the package. |
| and longer for underwriters to respond to a submitted | | | | So, the lesson to take away from this is to know up |
| application. | | | | front that getting a mortgage loan on a new home |
| You may be asked to explain the source of large | | | | takes a lot of time and a lot of signing and therefore |
| bank deposits. This is done to make sure that you | | | | you should start the process armed with lots of |
| have not obligated yourself to debt that does not | | | | patience. Don't set a moving date until you here the |
| currently show on your credit report and impact your | | | | words "clear to close" and a closing date has been set |
| debt to income ratio being used for approval. | | | | with the closing agent. |
| You may be asked to explain inconsistencies in pay | | | | Take this attitude and it will save you a lot of |
| from one year to the next. You may be asked for | | | | frustrating moments during your home loan process. |
| more current bank statements and pay stubs. In the | | | | |