Documenting A Mortgage Loan in 2012

Yep – We’ll Take a Thumbprint of Your Second Child, Too

If you purchased a home in 2006 and find yourself in the enviable position of purchasing again now… you might be surprised by some of the ways the mortgage process has changed.

Oh Sure… you’ve heard that it’s hard to get a mortgage, but you’ve got 800 credit scores, a ten year job, cash in the bank (2.5 kids AND a dog!)!  You might think the stories about a tough time getting a mortgage is all about those “other” poor souls.

These days… it doesn’t matter how much money you make, what a great deal you got on the house – or if you have 2.5 kids… we want to know everything, and we have to PROVE/Document everything.

AND… just because your loan is approved does NOT mean that we are through asking you for more stuff!  Once a loan is approved by an underwriter, it OFTEN (luck of the draw) goes through a rigorous quality control audit.  The audit can require (in addition to any details the underwriter requested) a full tax return, or an updated credit supplement, or an additional bank statement.

To understand this a little better, consider the Privacy Acts, and how we now use the Internet to store varying data.  You might say on a loan application that your telephone number is 222.334.4555… and that MIGHT be the right number.  However, when the QC Auditor goes to verify that telephone number as yours (usually online through a service like Reverse Lookup) – they find that it’s your CELL number, and therefore not listed.

OR… let’s say you applied for your mortgage on January 5th, and provided us with 2 months of bank statements that “drop” on the 20th of each month.  We may have to get a copy of your JANUARY 20th bank statement, even if we have enough money verified to close!

So here’s our advice, if you are applying for a mortgage in North Carolina (some states are different):

• Assume we need everything.  All of your tax returns, all of your bank statements, your pay stubs, divorce decrees, IRA account statements… all of it!
• Assume we need any updated documents you receive after you apply for a mortgage.  If the loan officer says you are approved, don’t throw those documents away – you probably have another opportunity for us to ask you for it again!
• Don’t pack financial documents in a box on the moving van unless the loan officer tells you to… just in case. This is Murphy’s Law in full force!

We MUST obtain a copy of your Tax Return Transcripts.  Haven’t filed yet?  That’s a problem.  Go ahead and file your taxes, because we can not close your loan without that Transcript!