If it were up to us, We'd lend our own money to a borrower with $2.2M in assets and an 813 FICO score. Done. But lending isn't that easy and commonsense has left the building. Rules are tighter. Lenders are pickier because they are fearful that there will be mistakes in the way they document their loans and their investors will make them BUY BACK
the loans that were sold. Not good. So details are everything these days which may cause you to ask:
Didn't I Give You This Already?
You think having great credit and income would be enough these days, but underwriters don’t see it that way. You may have supplied bank statements, W2’s, tax returns and your life history on paper, but 95% of the time, it won't be enough. The lender may want a CPA letter regarding an issue. They may come back and ask for it to be on the CPA’s letterhead if it wasn’t the first time. Ugh.
Since many loans are being sold in today’s market, the investors buying them have learned the lessons of last decade and they are ultra-conservative; this means more documentation for you. It’s not uncommon to have new conditions pop up the week of your closing, so please understand that you play a critical role in getting your loan closed and the sooner you can get us any additional documentation, the better.
Lenders and underwriters are big into paper-trailing where your money for closing is coming from. This is part in due to Anti-Money Laundering Laws that regulate the financial industry. If your cash for closing is coming from a SunTrust account, but you recently moved the funds from a Wells Fargo account, you'll have to provide the Wells statements. AND if there are any large deposits in your Wells account, those will need to be explained and possibly paper-trailed as well.
Although these items may not have been available or asked for when you initially started your loan, don't be offended or surprised if this comes up later in the process. It's normal and a little painful, like stubbing your toe. Over and over.