Well it might appear as though getting a mortgage is easier than it was a few years ago, the process is still dicey. It is no secret in the industry the majority of loans do not close on time. Here’s what you need to know if you’re going to be getting a mortgage in the near future…
You might recall the mortgage meltdown? The mortgage industry screwed up the entire country and the better part of the world. As a result the mortgage industry has gone through a total overhaul making the ability to obtain a fixed rate mortgage a feet of paperwork of processes. Your lender should convey to you that the mortgage process is very, very difficult and they don’t control many of the things in the loan process, but they can help you navigate through the process in getting you to the finish line.
Consumers who find the mortgage process to be very easy are the people who have their financial house in order. This means providing to the lender all of the following things:
- Two years of federal income tax returns complete with all pages and all schedules
- Two years of partnership returns (if applicable)
- W-2s for the most recent last two years
- Pay stubs for the last 30 days
- Complete bank statements all pages for the most recent last 60 days including all assets for the most recent last two quarters
- If divorced a full copy of the divorce decree all pages and all schedules including the marital settlement agreement
- If paying child support child, alimony or tax debt the payment agreement is needed complete with all pages
- If a previous bankruptcy exists, full BK papers are needed including the schedule of creditors
- If a foreclosure exists in your past (within last 7 years), then the actual date the house was sold in the trustee sale supported with a trustee’s sale deed.
- If a short sale exists in your past, a copy of the settlement statement from the transaction is needed.
- Insurance contact information
Notice the reoccurring theme? Every tiny piece of documentation associated with the above items becomes critical to the timely structuring and successful funding of your mortgage application. Put simply, if there is any missing even if that page is blank it will cause not only a delay in your file, but could also you wrapped around the axle leading to a distaste about the process when the lender does not making the lending rules.
The examination process lenders must perform for each and every borrower is very through. The underwriting (vetting of the mortgage application and support documentation) is designed to make sure the loan being originated has little risk when the loan is sold to Fannie Mae or Freddie Mac’s.
If you’re looking to get mortgage loan today be on top of your game with your financial paperwork and provide every single financial piece of documentation your lender needs. Be a smart mortgage borrower and recognize the mortgage process is not easy, but right lender will tell you that.
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