Mortgage Loan - Documents Needed (home loan, 2009, approval, credit card)

[newhomebuyer80]

There are many experts in this forum; I think this thread can help anyone like me to get ready for the Loan Approval Process

New Home Loan

Documents to be collected before ...as of I know: Inputs needed to make it perfect;

1. Bank Statements - Recent
2. Money Market Accounts - Recent
3. Credit Card Statements - Recent
4. Recent Pay Stubs
5. 2 years of W2 forms
6. Final Purchase Contract from Builder
7. Home/Hazard Insurance Document
8. Identity Information - Passport / Driver License
9. Social Security Card
10. Employment Verification Letter
11. Previous Rental History (from the landlord or checks submitted)
12. Previous living address details ( 2 years )
13. All other Loan documents ( Car Loan, etc)
14.
15.
16.
17.

I know this documents may differ for different people - But certain documents are standard to be collected...

experts please give your inputs, it will be helpful for newbies like me..

[bornandraised atl]

yes, yes, and yes.

You are a loan officers dream---keep those handy in a folder and be ready to present them to you loan officer at application.

[chet everett]

In all honesty I would say 75% of all loans that involve a standard employment situation need only a minimal official ID to tie the applicant to current / previous address and SS number so that the validity of the credit report and employment status is fairly certain.

In some case the LESS documents you produce (especially when it comes to CC statements and any sort of employer verification) the less the loan officer has to worry about authenticating. Your authorization to obtain these sorts of doc DIRECTLY from their source removes the possibility of some sort of falsification...

[newhomebuyer80]

I am ready to prepare those documents.
"""""""
In some case the LESS documents you produce (especially when it comes to CC statements and any sort of employer verification) the less the loan officer has to worry about authenticating. Your authorization to obtain these sorts of doc DIRECTLY from their source removes the possibility of some sort of falsification..."""""""

It means, its good to prepare those document before loan lenders ask me RIGHT???

[SmartMoney]

I don't think that is what Chet means.......there are times you can provide too much information resulting a documentation nightmare. A quick example would be an unsourced counter deposit at the bank. It would be insane to try to list all the possibilities on over documentation and what could be a problem ....and, what's a problem for one investor may not be one for another. And most loan officers are good about handing back things they don't want in the file.......it's the ones that aren't experienced or put everything in the file without reviewing them that create the nightmares the night before closing.

You should be able to get an approval subject to an updated paystub when you are within 1 week of closing. Ask the loan officer once the file is approved if you get a copy of the mortgage loan commitment and ask how long that commitment is good for. If you are going to have to provide this documentation twice (obviously not SS cards and DL, but things like bank statements or if they are going to update credit again)......your loan is really not being submitted the first time around. (MEANING: If your loan isn't closing until May of next year, they won't be submitting your loan for approval until April). Push for the Mortgage Loan Commitment Letter.

[bornandraised atl]

It means, its good to prepare those document before loan lenders ask me RIGHT???

Yes!---keep them with you in a folder---the more information you have the better. When you work with your loan officer, he/she should be able to review the documents and identify any follow up issues after review then determine which are necessary and which are not for the underwriter to review for approval.

Be prepared, ask questions, and make sure that you and your loan officer stay in touch during the time between application and closing.

Good luck!

[chet everett]

Yes, yes, a thousand times yes -- odds are very good that you will not be asked for everything on you list, but if your have them WHEN ASKED things will go much more smoothly. The comment I made was really directed to the fact that occasionally having all the potential documents right at your finger tips is a sign that such a borrower MAY have dummied up something, but in that case you would ALSO be requested to supply authorizations to verify everything. NOT COMMON, but something to be aware of -- and the OP sounds like a "prepare for the worst" kind of planner (which is always commendable!)

[newhomebuyer80]

thanks friends...i have already started collecting all the documents; my closing will be in April 2009.

I have another question

Situation :
Bank of america pre approval letter says that I need to submit the "rental history document" Either providing the letter from apartment owner to certify about my on time payments or rental checks photo copy.
I got the letter already from my apartment owener about my on time payment; My lease is ending on Jan 26th, Now i am going to transfer the lease to my friend's name - i am not going to be in the lease legally from Jan 26th.
I sent an email to Bank of america loan officer about this situation, He told me that I have to submit the letter and My rental check i am going to give it to my friend until april;

What do you think, I am in safe place if i do that? or is it better to add my name on lease ( which i dont want to do to avoid problems at the end)..

Please help me out...

[bornandraised atl]

I used to work at BOA---and ran into this condition more than once. I will spare you all of the underwriting jargon and and guideline quotes.

My recommendation is for you to work with your mortgage loan officer at BOA -

Basically they want to know if you are paying rent so that they can verify that you have been making your payments on-time---it sounds like you will be closing on a home after 1/26 and your name will not be on a lease---fully explain the lease situation to your loan officer have him/her disclose it to the underwriter and wait for the underwriter and your loan officer to tell you how to proceed.

Full disclosure is the best policy - As a loan officer I would prefer you to tell me everything so that I am sure to structure your loan properly and make sure there are no last minute 'surprises'.

I have faith that BOA will do that for you.

good luck.

[Sub-Urban Princess]

A general needs usually consists of.....

1. Most recent "consecutive" paystubs totaling 1 month

2. 2006 and 2007 W2's...after 4-15-09...they could ask for 2008 W2's

3. 2 months asset statements to prove you have sufficient down pmt and closing costs (this could be combo of money mkt, CD, Savings) It's always good to show a little more so the bank feels comfy knowing you have money left over after closing. We call them "reserves". In some instances, reserves are required. Make sure to give ALL pages, even if you think they don't need them.

4. Purchase Contract signed by all interested parties.

5. Homeowner's insurance policy (usually the last item requested)

6. Letters of explanation regarding derog credit or random credit inquiries, if any.

7. Copy of Earnest Money check given to builder or seller...a statement or transaction history from the bank it was withdrawn from (this could vary depending on how much money you have collectively)

8. Name and number of Attorney (if your state uses them).

Various other docs could be requested based on the characteristics of your loan. (e.g. divorce decree, proof of child support income, bankruptcy discharge docs, proof of paid collections, etc.)

Your lease situation: Banks typically want to prove 12 months of on time payment history to a landlord if you've not owned before. If you have a letter from the landlord verifying 12 months, you should be fine. You can disclose this to your Loan Officer as someone mentioned but I wouldn't advise you to ask the Loan Officer to shove it in the face of the Underwriter unless it verifies the aforementioned payment history.

Lastly, most mortgage commitments are good for at least 3-4 months and then banks want to pull a new credit report and collect updated docs. I've worked for many big banks including Bank of America. The expiration of the commitment letter is usually dated based on the oldest document in the file or an outdated credit report.

I would push for loan submission pronto. That's the only way you'll get the commitment letter. It will mean your loan has been looked at by an actual underwriter. The pre-approval is just that....a pre-approval.

Usually,at the pre-approval stage; your L.O. has pulled credit, reviewed docs and ran your loan through an automated underwriting system for a preliminary answer.

Good Luck and come back to tell us more...you've got a good group of knowlegable supporters here.