As a Roseville mortgage broker, I get this question a lot from home buyers, especially ones who have applied for mortgages in the past. I coach buyers (new and experienced) that the current lending environment and process is much different today. Lenders/investors are
requiring much more information from borrowers than in times past. This is very frustrating to many buyers. It doesn't make sense, especially to the ones that tell me they pay all their bills on time.
Pay stubs, two months of bank statements with all of the pages (even if they’re blank?), Federal taxes, divorce papers, copies of Driver’s and Social…the list seems endless.
It’s important to understand the lender’s perspective when you are applying for a mortgage: they don’t know you and you are asking them to give you a lot of money. Naturally, you should expect them to ask a lot of questions so they can ensure that they are going to get their money back!
The mortgage crisis taught us many things—most notably that borrowers who were not thoroughly screened for loans had a very high default rate. So, in an attempt to keep future losses at a minimum, lenders now go overboard screening loan applicants and applications. Every buyer should expect to submit a lot of paperwork for even the most seemingly straightforward loan. Rest assured that the loan officer doesn’t want to shuffle any more papers than necessary so you won’t be asked for anything that isn’t really needed!
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