You’re going through the home loan application and approval process. You turned in all of your documents… so why is your lender asking for new copies? Here’s a list of what documents you need to keep a close eye on during the loan process, and how you can stay one step ahead of new document requests.
If you’re planning on paying your mortgage with money you earn by being gainfully employed, don’t be surprised if your lender wants to make sure you’re still working if the loan application process spans more than 30 days.
Expect to update paystubs as you receive new paychecks, so your lender knows you’re still financially viable. If you end up switching jobs, try to show a seamless transition and uninterrupted cash flow.
Also note that a lender will do a final verification of employment at the end of the loan process so it’s extremely important to be transparent about any changes in your employment situation as soon as possible to avoid major issues at the end of the process.
Hand in hand with your employment verification goes your asset verification. It’s not just your employment and income that needs to be verified, but your available cash for your down payment and any applicable loan costs. You’ll need to show your bank statements as new ones are issued, to verify sufficient funds to close. Your lender will also check to make sure deposits align with your income.
If you have large deposits be prepared to explain those to your lender as they are required to verify that all funds being used to purchase the home are from acceptable sources. Unsecured loans from banks, credit cards, relatives or anyone else is not permitted when buying a home so be aware of what is being deposited into your account. If you go to Las Vegas and win a pile of cash at the casino make sure it’s documented and can be proven prior to depositing the money in your bank account.
While you don’t normally want successive hard pulls on your credit, if your house hunt goes on for more than 60-90 days, your lender may wish to pull your credit one more time for underwriting before your loan is approved.
Additionally most lenders will do a soft-pull of your credit before closing to ensure you haven’t incurred any new debt during the loan transaction. While this type of credit pull doesn’t negatively impact your credit score, it can be an issue if the new debt negatively impacts your debt to income ratios and pushes you over the qualifying ratio requirements. Always notify your lender prior to borrowing any money when buying a home, to make sure it won’t cause your loan to be denied.
By uploading new documents to a secure portal provided by your mortgage company, or passing them along to your Loan Officer (LO) as they become available, you can keep the wheels turning on your home loan process.
Your Sammamish Mortgage Loan Officer Can Help You Start the Preapproval Process Today!
We’ve fine-tuned the preapproval process to make it one of the easiest experiences you’ll have in the whole home buying process. Buying a home should be fun and exciting, not stressful. Get preapproved today!
Sammamish Mortgage has been in business since 1992, and has assisted many home buyers in the Pacific Northwest. If you are looking for mortgage financing in Washington State, we can help. Sammamish Mortgage offers mortgage programs in Colorado, Idaho, Oregon and Washington.
Contact us if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.