This is a recent post by a Florida mortgage broker in the Palm Beach county of Florida. Thought this was interesting to share…
As a mortgage broker in Palm Beach county, I work with a lot of first time homebuyers. The loan process is sometimes scary and intimidating. It really doesn’t need to be that way, however you do need to be prepared to provide certain information so the lender can determine if you can pay the loan back.
A purchase that I am working on is consuming a lot of my time and energy, so I’ve decided to write this “letter” to hopefully educate and inform first time buyers and anyone else who may not be familiar with the mortgage loan process.
Dear Borrower:
As a mortgage broker, I pride myself in getting loans closed as quickly as I can. I’m good at what I do, but I also rely on a team to help me. That team can include an appraiser, a Realtor, a processor, an underwriter and YOU. Everyone on the team relies on the others to do their job correctly.
That’s right – you are part of the team too. And your job is to provide me with the documentation I request in a timely manner. If you do that, you loan is going to close quickly. If not, your file is not going anywhere.
You are wondering why it’s been a month and your loan hasn’t closed…let’s see..what could be the problem? ..
The pay stubs you gave me are from 3 months ago – and we need recent paystubs. It’s taken me 2 weeks to get current pay stubs from you. If I submit your loan with outdated documents, the underwriter is going to put your file at the bottom of the pile.
You told me you had a 401K, so I asked for verification. Another week goes by..OK, I think you get my drift.
You’re upset that I am “asking for so much stuff” that you’re going to have to take time off work.
I am asking you for the things I know the underwriter will require. The underwriter needs to justify approving your loan. If you were loaning someone a few hundred thousand dollars, wouldn’t you want to be assured you would get paid back?
If you are prepared with the documentation you will need , your loan process will go very quickly and smoothly.
Here’s a list of documentation you will need to provide to your mortgage professional:
1 month’s worth of current pay stubs
W2′s for the past 2 years
2 years tax returns – current
2 months of current bank statements..all pages and all accounts.
Current statements for any other assets such as a 401K or mutual fund.
2 years of complete employment history and a phone number for the HR department or a supervisor who can verify your employment.
Letter of explanation for any derogatory items on your credit report. Something very short and to the point, you don’t have to write a novel.
For a purchase, a copy of the sales contract signed by all parties
A copy of your driver’s license and social security card
It seems like a lot, but this is what your mortgage professional needs so they can submit your file to an underwriter for approval. Providing these things with the file makes the underwriter very happy and that means a faster closing for you!
