Applying for a mortgage loan is a process
Applying for a mortgage loan is a process. The first step is to complete a full mortgage application which is known as the 1003. It is a 4 page application that asks you information about yourself and your co-borrower. You need to state all of your personal information which includes your income, assets, and liabilities for you and your co-borrower. Once this application is complete, your mortgage broker/banker will submit the completed mortgage application to Fannie Mae’s automated underwriting system, also known as AUS.
Automated Underwriting System/ Documents required for mortgage loan processing
If you get an approve eligible from the automated underwriting system, you are golden. Your mortgage broker/banker should be able to issue you a pre-approval letter so you can officially start your home shopping campaign. Once you have found the home of your dreams, you and the seller will enter into a real estate contract and sign the official real estate purchase contract.
You need to forward the real estate contract to your mortgage broker/banker
Once your mortgage broker/banker has the signed real estate purchase contract, he can go to work. Your mortgage broker/banker will email you or mail you a completed mortgage application for your signature along with the proper disclosures ( Good Faith Estimate, Truth in Lending Statement, Fees Worksheet, and other forms/disclosures depending on the type of mortgage loan you are seeking).
Documents required for mortgage loan processing
Most mortgage lenders will require the basic same documents. Documents required for mortgage loan processing vary from lender to lender but most of them require the basic following information.
1. Real estate purchase contract.
2. Copies of social security cards for both the borrower and co-borrower.
3. Home address for the past two years.
4. Two months of bank statements which include any and all checking and savings accounts, money market accounts, retirement accounts, securities accounts, and other liquid accounts.
5. Most recent pay check stubs, 2 years W-2’s, 2 years tax returns, and/or other proof of income such as social security statements, pension award letters, etc.
6. Proof of other income such as child support, alimony, etc.
7. Bankruptcy documents if applicable, divorce decree if applicable.
8. Cancelled checks to determine rent verification.
9. Gift letters in the event if you are receiving a gift for the down payment from a family letter.
10. Explaination letters for recent credit inquiry, prior bankruptcy, prior bad debt, or prior judgments/collections.
11. Be prepared to explain extraordinary deposits and/or withdrawals.