Documents Required For Mortgage Process and to Buy a House

Documents Required To Start Mortgage Process And Close On Time At Capital Lending Network, Inc.

Whether mortgage borrowers are starting the mortgage process at Capital Lending Network, Inc. or at another mortgage company, the Documents Required To Start Mortgage Process is the same.

In order to assure a smooth and no-stress mortgage process, all documents submitted need to be legible and complete
Illegible and incomplete documents will get kicked back and is one of the biggest reasons for delays during the mortgage process and can possibly delay mortgage closings
Do not send phone pictures or piecemeal emails
Our processing department at Capital Lending Network, Inc. will not submit any mortgage files to underwriting unless we get all documents that are legible, labeled and complete and PDF Format
When emailing documents required to start the mortgage process at CLN, make sure to list your last name as well as the document being attached in the subject section of the email

Following the above instructions will streamline and fast-track the overall mortgage process. It will make the job of the processing and operations staff efficient and the underwriting approval process quicker.

Documents Required To Process Mortgage Loan To Get Home Loan Approval

There is going to be many documents that will be requested during the mortgage process depending on the borrower. Please format the initial documents required as follows when sending it to processing:

All documents requested need to be complete and legible
Make sure to send the blank pages as well
SCAN all documents, label them, and email them on PDF FORMAT
Do NOT email phone pictures
All documents need to be sent all at one time and NOT piecemeal

SENDING DOCUMENTS ALL AT ONCE VERSUS PIECEMEAL ASSURES THE MORTGAGE PROCESSOR WILL GET THEM AND WILL AVOID DELAYS OR DOCUMENTS GETTING MISPLACED AND/OR LOST.

The Role Of The Mortgage Processor

The role of the mortgage processor is to make sure the file is complete with documents required to submit to underwriting. The mortgage underwriter will not waste any time digging for paperwork that is not labeled and/or incomplete. Incomplete files will get kicked back to processing.

Incomplete and/or illegible paperwork and documents is the main reason for delays in getting conditional loan approval and closing
Make sure we get all pages, including blanks are provided
When sending emails containing the documentation requested, please label the subject area and list borrower’s last name and the document(s) being submitted in the subject line

This will increase our efficiency in the process of borrowers’ loan requests.

Documents Required: The Loan Estimate And Disclosures

The Loan Estimate and disclosures need to get disclosed to the borrower. Other important disclosures that will be sent to the borrower are the following;

An E-Consent will be sent to all borrowers via email
The purpose for the E-Consent is a consent email that the borrower’s consent to receiving emails
The mortgage process will proceed after the borrower acknowledges reading and understanding the purpose of the e-consent which is done by signing it electronically

The loan officer and/or the mortgage processor may email other documents and/or forms that need to be signed and dated.

3 Main Types of Documents Required To Buy a House

When you’re ready to buy a house, you’ll need to gather several documents. These include identification, proof of income and assets, and documentation of your credit history. Your lender will require all of these items before approving your home loan.

IDENTIFICATION: You’ll need to provide a government-issued photo ID, such as a driver’s license or passport.
PROOF OF INCOME AND ASSETS: Lenders will want to see evidence of your financial stability, including your most recent tax return, pay stubs, bank statements and investment account statements. If you’re self-employed, you may need to provide additional documentation, such as profit and loss statements.
CREDIT HISTORY: Your lender will pull your credit report to assess your financial risk. They’ll also look at your credit score, which is a numerical representation of your creditworthiness. A higher score means you’re a lower-risk borrower and are more likely to qualify for a home loan.

If you’re not sure what documents you’ll need to buy a house, talk to a lender or real estate agent. They can help you gather everything you need before applying for a home loan.

Other Forms And Documents Required To Keep The Mortgage Process Moving

Other forms and documents borrowers need to complete and return with their signature are the following:

BORROWERS AUTHORIZATION FORM:

Borrower’s Authorization
The borrower’s authorization form gives the operations staff at the mortgage company power of attorney to represent the borrowers and talk to the borrower’s employer and insurance agent regarding this mortgage transaction will be emailed once we get the required documents below

CREDIT NQUIRIES ON CONSUMER CREDIT REPORT:

Lenders are concerned with the borrower’s ability to repay the new mortgage loan. Therefore, any new credit inquiries on the borrower’s credit report will be scrutinized. Lenders want to know if the borrower incurred new debt that may affect the borrower’s debt-to-income ratio:

A letter of explanation is needed for any credit inquiries on the borrower’s credit report
Lenders need to know if any new debt was incurred or what the final outcome of the credit inquiry was
Please sign and date the letter of explanation with the purpose and outcome of the credit inquiry

DEROGATORY CREDIT TRADELINES:

Most loan officers will go over the list of derogatory credit tradelines on your credit report and tell you how to write a letter of explanation.

For any derogatory items that appear on the credit report, the borrower needs to write a one or two-sentence letter of explanation
Needs a brief description of explanation such as the reason for the credit inquiry on ABC VISA CARD was to shop for a better interest credit card but I did not get approved

Again, the loan officer will go over this with you.

Social Security & IRS 4506T Form VERIFICATION:

The mortgage processor will send borrowers a social security verification form:

Please verify borrowers and co-borrowers SS#| Then sign and date the form
A 4506T used to order borrowers tax transcripts from the IRS for the last 2 years

DOUBLE CHECK ADDRESS:

Please double check the address on the IRS 4506T form

There will be a delay if the address you filed you federal income tax returns do not match the IRS 4506T form.

Documents Required To Process Home Mortgage:

Copy of front and back of driver’s license
Copy of front and back of social security card
Two months’ bank statements &/or retirement accounts– All pages even blank ones
Irregular and/or large deposits that is non-payroll needs a letter of explanation
Home owner’s Insurance proof or agents name and phone number
Social Security income and/or retirement awards that is given yearly along with 3 months bank statements to show direct deposits if applicable
Copy of borrower’s current mortgage statement(s) if applicable
Proof of real estate tax bill and proof of payment if applicable
Divorce decree if applicable
Provide a copy of executed real estate purchase contract
Acknowledge and electronically sign the “Letter of Intent” to proceed with the mortgage process

Once the home inspection is completed and the borrower is, the home appraisal is ordered.

Why You Need Identification When Buying A House?

When you apply for a home loan, your lender will need to see proof of your identity. This is typically in the form of government-issued photo ids, such as a driver’s license or passport. The lender will use this information to verify your identity and make sure you are who you say you are.

Why You Need to Show Proof of Income and Assets When Buying A House

One of the things your lender will look at when you apply for a home loan is your financial stability. They’ll want to see proof that you have the income and assets necessary to make your mortgage payments on time, every month. This includes documents such as your most recent tax return, pay stubs, bank statements, and investment account statements. If you’re self-employed, you may need to provide additional documentation, such as profit and loss statements.

Why Your Credit History Matters When Buying A House

Your credit history is an important factor in determining whether or not you qualify for a home loan. Lenders will pull your credit report to assess your financial risk. They’ll also look at your credit score, which is a numerical representation of your creditworthiness. A higher score means you’re a lower-risk borrower and are more likely to qualify for a home loan.

If you have a low credit score, don’t despair. There are steps you can take to improve your credit before applying for a mortgage. For example, you can check your credit report for errors and dispute any inaccuracies. You can also work on paying down debts and increasing your credit limit. These measures will all help to improve your chances of getting approved for a home loan.

Tips for Gather the Required Documentation for a Home Loan

Get organized: Before you start gathering documents, make a list of everything you’ll need. This will help you keep track of what you have and what you still need to get.
Give yourself time: Don’t wait until the last minute to start collecting your documentation. It can take some time to gather everything, so start early.
Know where to look: Not sure where to find certain documents? Ask your lender or real estate agent for help. They can point you in the right direction.
Keep it all in one place: Once you have all the documents you need, keep them together in a safe place. This will make it easy to find everything when it’s time to apply for a home loan.

Applying for a home loan doesn’t have to be a stressful experience. If you’re prepared, it can actually be quite straightforward. By gathering the necessary documentation in advance, you’ll make the process much easier on yourself. And if you have any questions along the way, don’t hesitate to ask your lender or real estate agent for help. They’ll be more than happy to assist you.