Lenders take a hard look at your financial history and personal life while they consider your request for a loan. They’re not doing it to be invasive but to make sure their investment will be protected if they choose to enter an agreement with you. Read on for a closer look at why lenders require so much information and what you should be ready to provide.
To protect their financial interests, most lenders want the home loans they give borrowers to have Qualified Mortgage status. This is a relatively recent designation, introduced by the Consumer Financial Protection Bureau in 2014, that means lenders can’t be forced to buy their loan back if a buyer defaults. Lenders need extensive proof of a borrower’s financial reliability to receive Qualified Mortgage protections, which explains why they ask you for so many records.
Here’s a list of the common paperwork and personal info you should prepare to share with lenders:
If you need help preparing all of these documents or answering questions about relevant life events, let your loan officer know. They’ll work with you to make your mortgage process more manageable.