Mortgage Blog

This week I want to discuss underwriting and the importance of having a well prepared borrower. Given the crisis we find ourselves in it’s no surprise that underwriting standards have become more restrictive. We have to ask for items from borrowers that seem trivial and burdensome but it is the new reality. With the influx of loans and the additional documentation, loans are taking much longer to clear underwriting so it is important to set the proper expectations for all involved. If you have clients starting the home buying process make sure they pull together the information below before they start looking at houses. It will save time and keep everything on track.

Paystubs with year to date earnings

W-2’s

Tax Returns (2 years are a common request and required for self employed borrowers)

Bank Statement with all pages

Attorney information

Homeowner’s Insurance

Copies of Driver’s License

By having this information early on in the process we are able to provide better feedback to the realtor and the borrower which could alleviate some common anxiety associated with getting approved. Money is still very much available but more time and effort is required to obtain it. We do our best to ask for everything upfront but we still get the last minute requests. For those first time homebuyers I would encourage them to utilize our Fast Start Program. It organizes everything and better prepares your client. If you have nay questions on this please feel free to give us a call. Have a great weekend. MB