Princeton Town Topics – Let’s Talk Real Estate – May 26, 2010
WAITING FOR YOUR MORTGAGE LOAN
It is not unusual for homebuyers to feel that the lender is being very picky during the loan approval process. You have provided all kinds of information, and then the lender asks for more. Although the loan approval process can be tedious, it helps to remember that none of this is personal!
Some lenders have more stringent requirements than others, but every lender requires a substantial amount of documentation on a mortgage loan. They must verify employment, credit history, and recent financial transactions involving your liquid assets. If your Visa payment was late, they may ask for a letter explaining why. If you are self-employed, they will ask for several years of tax returns and probably a year-to-date profit and loss statement. Their regulations require them to document everything. And while the loan officer may know that you are a good risk, the underwriters must be able to defend the loan to a federal bank examiner or auditor.
