Buying A Home
merrill77
member
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Underwriting
Hi all,
We are in the process of buying a house- we have had an offer accepted, signed the contract, are having the inspection tomorrow. The next step will be to actually apply for the mortgage (already have pre-approval). My understanding is that then the underwriters get involved. My question is what are the typical things that are coming back for you to provide to them? I have heard horror stories of them needing all kinds of documents, bills, statements, ect, that may be difficult to obtain? What were you asked for during this process? thanks! (I am a first time home buyer)
Re: Underwriting
We applied for 5% down, conventional loan.
All they need is the latest bank statements for all the assets that we listed on the application, last 1 month's pay stubs, explanation for any credit transactions that are more than $1000, W2s for 2011 and tax returns for 2010
We're doing 10% conventional and this is what I've been told to give them. We also have some gift money involved, so we have to have a signed gift letter and bank statements showing the money leaving the gifter's account and hitting ours.
It's possible. They went back as far as last summer- they were asking us about the $$ we got from FI's grandparents. The letters they ask you to write are usually very short and straight to the point. For this one, they asked us who they were and why did we get the money. That's it. Well so far, I'm worried that they'll come back and ask FI's grandparents to write a letter proving that they gave us the $ and why.
We have a USDA mortgage with 0% down. We had to provide:
Last 2 years of taxes for H and myself
Most recent 2 pay stubs for both H and myself
Last 2 bank statements for all accounts for H and myself
That's it. We didn't have any horror stories.
I've owned two houses on my own prior to this one (all within the last 10 years) and I had the same documentation requirements each time. I have seen some doozies though, so keep the liquor cabinet stocked at all times and try to maintain a sense of humor about these things.
http://pandce.proboards.com/index.cgi#general
If you're going conventional, then you probably will not have to document it. They only look at your statements for the last 60 days, so if the money was in there before that point, you should be all set. We're closing in less than 30 days and don't have it in the account yet, so we're out of luck on that front. I specifically asked our mortgage guy about that and he said if it was in there before 60 days, it didn't need the gift letter.
We close on Friday so I think we are through the majority of the underwriting phase. This is what we've had to provide so far:
1. Bank statements for the past 60 days
2. Bank statements and cancelled checks showing deposits we paid to our builder already (we are building a new home and they required some money up front).
3. 2 Credit inquiry letters stating what credit pulls were from and if new debt was incurred.
4. W2s from 2012, 2011, 2010
5. For some reason they also pulled DHs taxes from 2009, and questioned why he filed single.... we got married in 2010. They said they may have to pull my taxes from 2009 as well but they never did. I never understood this because we have since gotten married, moved, and both have new jobs/incomes. But thats how it works I guess!
6. HOA information
7. Homeowners insurance information
8. Final agreement of sale
9. Tons of various docs to sign
10. Employment information so they can verify it
I think that's it. There was a few weeks there though when we were getting emails from the processor every day with things we needed to fax/sign/email/whatever. It's rough. Especially when you have people telling you how easy it used to be to get a loan before the housing market crashed. DH and I have nothing to hide but it's still stressful.
Good luck!!!
bloggity blog
The only thing I had to provide that is not listed above is trust papers and my grandfather's will. Because I used inherited money for the down payment.
Also DH had only been at his job for 1 year and 11 months so they needed a signed letter explaining what he was doing for the other month to make up a full 2 years employement history.
All in all it wasn't too bad, I made about three trips to the bank to get copies of checks and we wrote four letters.