What Do You Need for Your Loan  
by John Occhi, Hemet CA REALTOR®  
Hemet CA Real Estate

My job as a REALTOR® is to help you find and buy (or sell) a house.  It does not matter if you are looking to buy your first home, a second home, if you are a move-up home buyer or an Investor.

Unless you are paying cash - you will be seeking financing.  As your REALTOR® I really don't want to hear your tales of financial woe any more than I want to hear how magnificent you are with money and how much you are worth. 

Let me be blunt at the risk of sound rude:  I DON'T CARE!

What I do care about is that you work with a lender that I already have a working relationship with.  No, I don't get a kick back.  No, the lender does not wash my car or buy me dinner - maybe a cup of coffee and an occasional lunch - but that's it.

The importance of working with my lender is I know he is legitimate and can do what he says he will do.  We have a working relationship and he knows that I rely on him for the truth - because we have a working relationship.  It's that simple.

If you come to me as a REALTOR® and tell me you are pre-approved with XYZ Internet lender - then I have a bunch or red tape to wade through to figure out what I need to know.  Then, I have to determine how good the information is.  Trust me when I tell you - most deals that come to me with outside lenders fall apart - don't ask me why - they just do.

When you talk with one of my lenders - and I have several - they will want to know about your financial situation and they will ask you to provide documentation to substantiate what you are representing.  They cannot do anything beyond a preliminary courtesy review with your loan package until you provide them with the information they require - and only then can they forward it to their underwriter for review and ultimate approval.

A well trained loan officer will be able to "qualify" you for a loan based on the information you share verbally.  Often this is good enough for me to take you house hunting.  All I am looking for is for your lender to tell me that you can afford a house for X number of dollars - now we can shop for a home.

Without that - you may have a beer budget with a champagne taste and completely waste everyone's time.  If I take you out to the homes that are more expensive and it turns out you can only afford 2/3's of that house chances are you will be too embarrassed t9o come back and work with me later.  Sorry, that is just the way this industry works.

Once you submit you docs to the underwriter, and you are quoted specific terms and conditions for a loan - then you are "approved" and the letter the lender will issue is like having a blank check.  At this point you can typically close escrow in a week or two, as opposed to 30 days or more when you are just starting out in the approval process.

So, let's take a look at what documents are required for a typical "full Doc" loan.  Please bear in mind that every lender is different and sets their own criteria and that may vary from one loan product to another.  If you can accumulate the following documents - chances are pretty good you won't need very much more - if anything.

So, lets take a look:

LOAN CHECKLIST

•Ø      Personal check if there is an application fee or credit check fee.  Sometimes you will need to pay for the appraisal in advance as well.  Sometimes all of these fees are absorbed into your mortgage - just remember you will be paying interest on that money for 30 years or more - so be wise.

•Ø      Purchase Agreement and legal property description.  Don't worry, this is my job to get this to your lender.

•Ø      Your Pay Stubs for the past 30 to 60 days.

•Ø      The Name ad address of each employer you have had for the past 2 years

•Ø      Copy of all of your W2s for the past 2 years

•Ø      Bank Account Statements, Mutual Funds, Investment accounts - all of your accounts showing where ALL of your money is - for the past 3 months

•Ø      Vague inventory of your personal property and furnishings with an estimated value - include any collections (coins, baseball cards, Barbie's, etc)

•Ø      Explanation for any large deposits into any of your accounts.  Explain where the money came from and what its purpose is.  If the money is a gift, then provide a signed gift letter with a copy of the check and the deposit slip.  If you don't have these - order them from your bank now so there is no delay later.

•Ø      Do you Own a Business?  If more than 25% you need to show corporate or partnership tax returns for the past 2 years.

•Ø      If you are self employed, you will probably need three years worth of tax returns to include all of  your schedules and a year to date Profit & Loss statement prepared by an accountant (no, not a book keeper or yourself).

•Ø      If you own rental property you will need two years of tax statements (with schedules) and copies of all of your current rental agreements

•Ø      If you are retired, you will need a copy of your pension award letter.

•Ø      If you receive Social Security or Disability you will need a copy of your award letter.

•Ø      If you are receiving Child Support - you will need a copy of the court order and copies of twelve consecutive monthly cancelled checks for the child support.

DEBTS

•Ø      You will need to disclose all of your debt.  Create a schedule that shows creditors, account numbers, current balances as well as the minimum monthly payment.

•Ø      If you have any derogatory credit, be prepared to explain it away.  I would not volunteer this information, until it is brought up to you.  However, when it is you will need to explain the reason for any late payments, charge offs, judgments, or other liens as well as the purpose for any inquiries in the last 90 days.

•Ø      If you have a bankruptcy filed in the last 7 years, the lender will want to see a copy of your bankruptcy papers as well as your discharge.

VA LOAN

 •Ø      You will need a copy of your DD214 discharge papers

MISCELLANEOUS

 •Ø      Photo Id

•Ø      Proof of your Social Security number

•Ø      Proof of residence for the past two years

•Ø      If you are divorced (ever) you will need a copy of your divorce decree

•Ø      If you are not a citizen you will need your green card or other documents that authorize you to buy property in this country.  Remember buying and borrowing is two completely different things.

As I mentioned earlier, this list is not exhaustive - as exhausting as it may be to fulfill.  There will be lenders that do not require this much and then there will be those that will tell you this is just a warm up, as they light fire to the hoops you will be jumping through.

And please remember, that as your REALTOR®, it is not me that requires these documents - save them for your lender - it is your loan officer who will be putting together your financial package - again, my job is to help you spend that money - what can I say, I have a shopaholic streak in me and can easily help you spend anywhere from a quarter million to a half million dollars or more in a single afternoon.

Because the loan process is co complicated and so closely entwined with the purchase process you really are best served by finding a lender that has a successful relationship and history with your REALTOR® at closing deals together.

Yes, it is OK to shop for a loan - but please do it with your REALTORS® Assistance - your REALTOR® should have 2 or 3 lenders that he works with that will take excellent care of you...because in return they will continue to be referred business by your REALTOR® - so it is a win-win-win situation.

Now Have a Blessed Day,

John Occhi, Hemet CA REALTOR
Mission Grove Realty