12-27-2012 02:26 PM
I have submitted everything that was listed below, and can come up with the reserves by closing, but should I be worried about a possible denial after being previously approved or is most of this pretty standard for someone with borderline credit (649 mid score)?
1) Need initial disclosures sent 12/17 accessed & esigned by you both.
2) Need November Chase statements – All pages. Will need December’s as well when they become available.
3) We need to verify sufficient liquid funds needed for closing plus 3 months proposed housing payment ($1,871.36) for reserves. Underwriting condition - 3mo PITI in liquid reserves (must be borrower's own funds: (gift and 401k not acceptable) Will not accept 401K or Gift to meet the reserve requirements***
4) HUD-1 from sale of previous property
8) Verify amount of earnest money (EMD) paid / cleared from an acceptable source.
9) Provide satisfactory signed credit explanation addressing all prior issues, include appropriate supporting documentation. ** See attached report for assistance with this.
10) Satisfactory verification of rent from property management company; if renting from an individual, provide 12mo cancelled rent checks supporting on time payments.-***if applicable*** If not paying rent, provide signed & dated letter explaining the situation.
11) Borrower to provide a detailed explanation regarding how they will be able to handle the increase in housing expense each month. *MUST* include what current monthly expenses will be deleted and *MUST* include a breakdown of current vs. proposed month expenses and monthly income.*** Please complete the budget letter attached provided by underwriter*** Estimated proposed housing payment - $1,871.36.
12) Satisfactory inquiry letter signed by the borrower(s). All inquiries within the past 90 days explained and borrower to confirm if any new debt(s) have been established (any new debt must be considered in qualifying). ** See attached report for assistance with this.
13) Provide most recent 30 days of paystubs.
14) Provide most recent two years tax returns for review by underwriter. Include all pages and ALL schedules. *** Sign & date page 2 of the 1040.
17) Source of Deposits made on 10-22 for $2868.99, 10-2-$3103.50 and 09-24-$3103.50. ***Borrower to provide a copy of these deposits & appropriate paper trail if needed.***
12-27-2012 03:12 PM
Seems pretty straight forward. Each lender/underwriter is going to be a little different I think. Ours for example did not ask for proof of rent or liquid assets equal to 3 months of PITI, most of the other stuff on your list though we were also asked for, and then some items that aren't on your list.