Getting a Loan? Be prepared to document everything and then some.

In 2013, getting a mortgage requires a lot more documentation than the pre-housing bubble collapse.

In 2006, you could submit a loan application with little more than a credit report and get an approval.  You might have to get an appraisal, you might have to provide a pay stub or single bank statement and many times you could get through the loan underwriting and to the closing in about a month or less.

While we still get most of our loan done in about 21 days, the work that we must do is many times more detailed.

The laws have changed as well as the guidelines of HUD, Fannie Mae, Freddie Mac, and other agencies that buy and insure loans.

As a result, we much prove that you have income, employment stability,  and assets sufficient to pay the payment.  We also need to show that you have the funds to cover the down payment and closing costs.

We also have to write explanation letters explaining why anyone else ran your credit in the last 4 months, any deposits that can’t be identified, and basically anything that someone examining your loan file could have a question about.

http://realestate.msn.com/loans.aspx has a pretty good list for the most part.  In Idaho, we use title and escrow companies instead of Attorneys and the deed is a public recorded document.  Here is my list that I use, and it works great!

The best bet is to locate and provide everything at the time of loan application, it will be less stressful that way.

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