A mortgage processing checklist ensures that all the lender’s requirements for your loan are met. Mortgage processing is the term for several of the measures the loan professional takes to complete the borrower’s mortgage. A listing for all the items needed by a mortgage lender assists both the mortgage processor and borrower remain organized and moves the mortgage process along more quickly.
Income and Asset Documentation
All assets and income employed in the mortgage approval process has to be recorded. The mortgage processor must have copies of W-2 types utilized in income tax filing for the current and prior tax years. Just how far back the W-2 forms need to go varies by mortgage lender, but a common condition is the past two tax years. Copies of at least four current pay stubs are necessary for employed borrowers. Self-employed debtors should provide income and loss statements, and copies of their full tax return. Bank and advantage statements must be provided, in addition to copies of any court awards used to qualify for the mortgage like child support.
Evaluation and Home Insurance Reports
Mortgage lenders require proof of homeowner’s insurance in the borrower’s name for the home tied to the mortgage to safeguard the asset. The processor obtains a copy of the commitment and coverage conditions, and policy amounts from the insurance company. Additional policy the lender is asking for, such as flood insurance, needs to be contained on the insurance policy plan. The lender demands a professional home appraisal with the aim of assessing the home’s market value and confirming the home is well worth the mortgage amount. The mortgage processor has to have a copy of their home appraisal.
Mortgage Payoff Data
The present owner may have a mortgage loan on the home. If the home is being sold to some other person, any existing mortgages have to be compensated in full. If the proprietor is refinancing, the mortgage being refinanced must be paid off. The mortgage processor documents the advice about existing home loans, like the account number, balance and lender name, to guarantee the loans have been cared for.
Proof of Homeownership or Sale
The loan processor should have proof that the borrower has or will have ownership interest in the home. The sales contract between the buyer and seller is required when the borrower is buying the home. If a mortgage is being refinanced or the present owner is carrying out another loan, a copy of the deed showing that the debtor as a recipient is necessary. A deed is the legal document used to show ownership of property.
Title Insurance Records
Title insurance, which covers the foundation of ownership in the home, may be required by the lender. The title insurance company’s contact info must be contained, in addition to commitment showing the total amount of policy the title insurance coverage provides.