The fact is that loans are more complex today than ever and they require more documentation. This is to limit the risk to the investor when they purchase the a loan, and the lenders need to sell their mortgage debt to be able to fund more loans.
The underwriting process can be frustrating and some of it seems ridiculous. There is a rhyme and reason behind this madness. Just remember loan officers don’t get paid until your loan closes, so we are not trying to make your loan or the paperwork impossible.
To close faster - get everything your loan officer asks for upfront, as soon as possible! Once the initial underwriting is finished (usually about 48 hours from receipt of you full loan package) get the loan officer EVERYTHING else they need to get your file “clear to close”. Don’t send them 3 out of 4 things they need … send them all!
If they ask for a 30 day bank statement don’t send them a statement with only 28 days. Get them what they need as fast as possible. This will ensure a timely closing and that your lock does not expire. If your lock needs to be extended, your loan officer can no longer cover that extension for you out of their compensation, new rules and laws prohibit this.
Fighting the extra stipulations or disputing the fact that you shouldn’t need to supply more income or asset documents - or saying I didn’t need this last time I did my loan will do nobody and good. It may be true BUT it is a waste of everyone’s time.
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