Providing home loan mortgage financing in Lake, Geauga, Mahoning, Columbiana, Erie, Sandusky, Seneca, Wyandot, Putnam, Hancock, Ottowa, Fulton, Williams, Henry, Defiance, and many more Ohio counties.
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Providing home mortgages in Findlay, North Ridgeville, Highland Hills, Beachwood, Moreland Hills, Ashtabula, Rock Creek, Delaware, Franklin, Brunswick, Geauga, Grafton, Lorain, Green, Bath, Sandusky, Port Clinton, Huron and many other Ohio communities.
 
Providing mortgage financing in Cleveland, Cincinnati, Toledo, Bowling Green, Columbus, Akron, Canton, Avon, Strongsville, Avon Lake, Solon, Dayton, Medina, Wooster, Youngstown, Alliance, Mentor, Elyria and many other Ohio cities.

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Documentation Required for a Mortgage

  • Full Documentation: Both income and assets are disclosed and verified, and the income is used in determining the applicants ability to repay the mortgage.
  • Stated Income - Verified Assets: Income is disclosed and the source of the income is verified, but the amount is not verified. Assets are verified and must meet an adequacy standard such as, for example, six months of stated income and two months of expected monthly housing expense.
  • Stated Income - Stated Assets: Both income and assets are disclosed but not verified. The source of the income, however, is verified.
  • No Income - No Assets: Neither income nor assets are disclosed.
  • No Ratio: Income is disclosed and verified but not used in qualifying the borrower. The standard rule that the borrowers housing expense must be some specified percent of income is ignored. Assets are disclosed and verified.
  • No Income: Income is not disclosed, but assets are disclosed and verified and must meet an adequacy standard.
  • Stated Assets or No Asset Verification: Assets are disclosed buy not verified, income is disclosed, verified, and used to qualify the applicant.
  • No Asset: Assets are not disclosed, but income is disclosed, verified, and used to qualify the borrower.
  • No Income - No Assets: Neither income nor assets are disclosed.

Along with income documentation for a mortgage there will also be credit verification, identity verification, bankruptcy discharge verification (if applicable), employment verification, divorce decree/child support/alimony verification, etc... There are many different types of verification and documentation required for a mortgage. A copy of your drivers license will be necessary to verify your identity. A credit report will be required to verify your credit scores and payment history.

A handful of banks offer the simplicity and convenience of Stated Income mortgages to borrowers with the same low interest rates as full documentation loans. Applicants must have good credit profiles, often with credit scores of above 720. There is usually also limitations on the subject property, such as no 3-family or 4-family houses.

If you qualify, generally the fast closings occur with stated income or no documentation required loan programs. As a rule of thumb, the more documentation provided, the longer it may possibly take t close the loan, however we are often able to lend you more money at a better rate if more documentation is provided.

If the broker working on the loan determines you can fit into a full doc loan vs. a stated loan the move is permitted to get a better interest rate. However if you have to go from full doc to stated once in underwriting that is not usually permitted.

If your credit scores are lower than 680 you can expect a higher interest rate on stated income and no documentation loans.

With automated underwriting if there are either enough assets, an excellent credit history, or sufficient equity or a combination of them the lender may reduce the documentation to things such as just one paystub, no asset verification or even a drive by appraisal which can speed the process up.

When stating assets on your loan application you are usually required to document proof of them. If the money is in a checking or savings account then usually the underwriter will request 2 months of bank statements to show the money is in there and has been there. A 401k statement is required (the most recent statement you have) to document a 401k account. If you do not want to deal with documenting assets during your loan process simply do not list them on your application. Sometimes providing assets may provide a better approval for a lower rate than if you don't document assets though.

Many loan progams such as No Doc or No Ratio may only be offered by your local mortgage broker. Most local banks do not offer any such programs. If you know that you may only qualify for those types of programs, feel free to call us at 888-418-4467.

Alternative Documentation can be the use of pay stubs, W-2 forms, and bank statements instead of Verifications of Employment (VOE) and/or Verifications of Deposit (VOD) to qualify a borrower for a mortgage.

The method of documentation that a lender's underwriter will perceive to have the lowest risk factor is W-2 income backed up by two years of actual W-2 statements and one complete month of paycheck stubs. The underwriter will want to be comfortable that they are issued by a legitimate company or organization. Pay stubs or W-2 statements that are handwritten rather than computer or machine generated will cause a red flag.

These documentation types should not be used for fraudulent purposes. The lender as well as the loan officer and client could be held liable for fraudulent loan practices.

There are many types of "alternative" options. Some lenders allow bank statements in place of paystubs, some allow tradelines that do not appear on credit. There are many creative ways that your mortgage broker should know about to best help your situation.

Generally, the more documentation you can provide to the lender, the smaller the risk is to the lender, which in turn gives you a better rate.

A qualified mortgage professional will look at your whole financial situation and can make recommendations on that type of income will suit you best.

The document requirement options available to you might change if you are buying a rental property. For example, a No-Doc loan may still be an option, but at a lower LTV.


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