The underwriting process begins with the borrower filling out a loan application and gathering the documents needed by the lender. In general lenders ask for the following:
-w`2s /1099/1040 tax forms for the past 2 years
-3-12 months worth of bank statements
-Most Recent Mortgage Coupon for all of the applicable mortgages on title
-Proof of any liquid assets
-Most recent paystub
-Homeowners insurance declaration page
-purchase agreement (if applicable)
Once these are recieved the lender will then verify the information and order an appraisal in order to qualify the property. THere are several types of income qualification, there is a stated income stated assets (SISA) , stated income verified assets (SIVA), no income no asset verification (NINA), no ratio , (NR) and limited/lite documentation. Typically the lite limited or lite documentation consist of 6 months of bank statements. There is a FICO guideline for each particular type of income verification. For the NINA or the No Ratio you need at least a 680 Mid FICO score. For the SISA, SIVA or the lite doc you need at least a 620 mid fico score. These are general guidelines for the bigger subprime, alt-a and A paper lenders out there.
Mortgage Professionals on the average which type of documentation do you use for your deals?