Documents Required For Mortgage Process
This Article On Documents Required For Mortgage Process Was Written By Trisha Mangiaracina Of The Gustan Cho Team at CrossCountry Mortgage
The frustrated homebuyer… what borrowers are never told.
People buying a home for the first time feel a bit overwhelmed by the amount of documents required for mortgage process needed when applying for a mortgage. It seems like there’s an endless demand of documentation needed and documents required for mortgage process.
Keep in mind to begin any mortgage process have the following papers ready to go:
- 30 day’s pay stubs – if a teacher indicate how many months your paid and if its semimonthly. If you have a bonus advise how often.
- 2 month’s worth of bank statements for all accounts, checking savings, if your using a 401k or pension, you need two months or your most current quarterly statement.
- Make sure you source the large deposits other than your pay stubs.
- All CASH deposits have to be sourced, if you cannot source them you most likely will not be able to use those funds.
- Social Security current year award letter
- Pension – award letter
- Self-employed 2 years tax returns if your only schedule c,.K1s business returns for 1120’s or partnerships.( easier to get them now instead of later)
- 2 years 1040’s. Signed and dated..
Credit has to be pulled let your loan officer know if you have any judgments or collection accounts. Anything out of the normal let them know.
The Mortgage Process
Remember this is just the beginning…Once your pre-approved get ready for round 2.
Letters Of Explanations will be required for mortgage underwriters in the mortgage process. You’re going to be writing letters for the following if it applies to you, the borrower:
- Inquiries on your credit report anyone that pulled your credit for the past 6 months (should only be 120 days) you need to explain what it was and if a new debt came of it.
- Name changes
- Change of addresses
- If your divorced your full divorce decree. If you have children, then a letter of explanation with all their birth dates and the support agreement.
Make sure when you put a deposit on your house, you copy the front and back of your check n get a letter of explanation stating you made that deposit and there holding your check. If you make a second deposit follow the same rule. Also make yourself a note you’re going to need copies of your bank statements showing the money coming out. That the money is seasoned.
You can use gifted funds for your down payment on a home purchase.
- There is a process on how gift funds can be used and your mortgage loan officer will explain.
- You need to get a gift letter signed by the donor of the gift funds where it states that the gifted funds is not a loan but a gift and that it will not get paid back to the donor of the gift.
- The donor needs to provide 30 days of their bank statements.
- Gift funds make sure you tell whoever is giving you this money they have to provide there statements 401ks showing the money going out and you need to show the money going into your account.
Tax returns if you didn’t sign them.do so. If you didn’t file make sure you have an extension the following applies:
- All mortgages require transcripts.
- If they come back as not filed then you won’t be getting a mortgage until they are.
- If you owe money make sure you’ve paid it and can provide immediate proof.
- If you are in a repayment plan, you have to have made 3 consecutive payments to qualify.
- If you haven’t you’ll have to wait until those payments are made
Verification Of Rent
Verification Of Rent is proof that you have been making rental payments for the past 12 months. Cash rental payments does not count and the only way that VOR, verification of rent, can be used is by the following:
- If you rented previously you might need 12 months of cancelled checks.
- Banks validate all the information you are telling them so share any thoughts or questions prior to getting your file to underwriting stage so your loan officer can head off any unforeseen problems
- If you are renting from a property management company, a VOR Form provided by the lender and completed and signed by the property manager can be used in lieu of 12 months canceled checks and/or 12 months bank statements.
- All manual underwriting files require Verification Of Rent.
Remember that your loan officer is only asking for more documentation at the underwriters request. The more prepared u are the faster you get the items in. The faster you close. One of the biggest reasons for loan closing delays is because borrowers do not provide important documents required for mortgage processing in a timely manner.
- You the home buyer determine the time it takes to close on how quickly you send in all items needed
- This is really just an insight into what you need and what to be prepared for.
- Don’t get frustrated or think the loan officer is asking for way to much information.
- It truly is the most paperwork you will ever put together for a purchase.
About The Author Of Documents Required For Mortgage Process: Trisha Mangiaracina
The author of this article Documents Required For Mortgage Process is Trisha Mangiaracina , a writer for Gustan Cho Associates Mortgage & Real Estate Information Resource Center and its subsidiaries and partners and full time mortgage professional with The Gustan Cho Team at CrossCountry Mortgage. Trisha Mangiaracina is a mortgage professional with over 20 years of experience as:
- Mortgage loan officer
- Mortgage processor
- Mortgage processing team leader
- Sales Assistant
- Loan Coordinator
- Experience working at banks
- Experience working at mortgage brokerage
- Experience working at mortgage bankers
Trisha Mangiaracina of The Gustan Cho Team at CrossCountry Mortgage worked with Gustan Cho NMLS 873293 for many years as his personal assistant and knows a great deal on mortgage back office support. Trish has worked on countless of mortgage loans and is experienced in processing the following:
- FHA Loans
- VA Loans
- USDA Loans
- Conventional Loans
- Jumbo Mortgages
- NON-QM Loans
- FHA 203k Loans
- Reverse Mortgages
- Commercial Loans
- Clearing Conditions For Clear To Close
- Title Matters
Gustan Cho Associates Mortgage & Real Estate Information Resource Center is looking forward to the many upcoming informational blogs that will be written by Trisha Mangiaracina of The Gustan Cho Team at CrossCountry Mortgage.