The “do you want my DNA” half joke/half real comment is all too common for mortgage lenders. It is understandable, clients comparing a pre 2009 mortgage experience to what mortgage applicants go through today find much more probing is involved.
Long gone are the days where he who fogs a mirror is approved for new home loan. Post 2009, each client/mortgage applicant must document the ability to repay their home loan.
As with many corrections, the mortgage world “over corrected”. However, the changes put in place sought to prevent repeating the early 2000’s. Think of the powers that be who are behind the mortgage changes like first time parents. Like first time parents this is their first time through this. As a result, they made sensible adjustments.
Documents Needed for Arizona Home Loan Pre-Approval
Each mortgage scenario is different. In addition FHA, VA, Conventional, USDA and Jumbo home loans have different requirements. Here is a list of the standard documents Phoenix Arizona Mortgage Lenders need:
- Drivers license
- 2 years Federal Tax Returns
- Most recent 2 years w2’s and 1099’s
- 30 days worth of pay-stubs
- Most recent 2 months asset account statements
- Mortgage payment statements for each properties owned by the borrower
The above list is a summary. Certain scenarios require more documents.
One Bad Apple…
Unfortunately, those who abused the system in the early 2000’s “influenced” today’s version of the mortgage industry. As a result, borrower’s with great credit, excellent income stream and verified assets get scrutinized the same as the next borrower. In fact, gray areas are hard to find these days.
Your loan officer must clearly communicate the documents needed for loan approval. After all, to the average client the process seems overwhelming. In addition, a failure to gather the proper documentation is the cause of many mortgage loan scenario.
The vast majority of last Arizona mortgage horror stories stem from a lack of due diligence on the front end.
By Jeremy House