I once lost a client because he was annoyed with me for asking him to provide documents for his loan application. He felt that my request for ALL the pages of his bank statement (he only provide page 2 of a 6 page statement), various W2 forms and 1099 forms (he had varying income streams) and the complete contact information for his wife’s employer was “too much.” He cancelled his loan application, and I was happy to see him go.
I believe my role as someone’s Loan Originator is to help them have a positive and tranquil experience with their Loan Application and approval process. I believe I should use my extensive knowledge garnered from nearly 24 years in the industry to know most-all the documents an Underwriter will require in order to approve someone’s loan request. So, I ask for a lot of documentation up front at the time of application.
Then there’s my childhood friend Bill who moved out west after retiring here in New York.
He found a house and applied for his loan. I recommended a fantastic national mortgage banking company (I’m not Licensed in Bill’s state). Instead, Bill chose his bank, where he’d had his money parked for many years. A few weeks into the loan process he called me one evening ranting and raving. It seems the bank kept calling him and asking him for more documents every day. He said they were “papering” him to death! We reviewed the requested documents together and I told him they were all reasonable requests. What was unreasonable was the fact his Loan Originator should have gathered these documents with the initial loan application.
As to my former client—the real estate agent who referred him to me told me after he closed how he was complaining during the many weeks it took to get his loan approved how the Loan Originator kept asking him for more and more documents every day. The real estate agent said the guy was pretty stressed over those requests.
When you apply for your mortgage, your Loan Originator can either gather all your documents up front—the mark, IMHO, of a true and experienced PRO—or document “drip” you through to closing.
Here’s what you should be prepared to submit at Loan Application:
__Paystubs: most recent four weeks consecutive
__W-2’s: most recent two years
__Tax returns: Federal Tax returns for most recent two years including all schedules
__Bank Statements: most recent three months consecutive statements, all pages
__Other assets: proof of other cash assets: 401k, IRA, Employer Pension Plan, Retirement funds, Mutual Funds, Stock accounts: Most recent three month statement, all pages
__Fully signed Purchase Agreement (Contract of Sale)
__Proof of your Earnest Money Deposit
Do you have questions? Click on ASK TREVOR and I’ll respond to any and all inquiries, even if you’re not buying a home in New York State.
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