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By Matthew C. Keegan
September 29, 2006
When applying for a mortgage, the amount of documentation required by mortgage
providers from borrowers can vary widely. Depending on the mortgage, you could
be required to provide full documentation or no documentation or something in
between. With the latter category, the mortgage company simply relies upon
your credit score and your credit history to determine if you qualify for a
loan.
Author Information:
Copyright 2006 – For additional information
regarding Matt Keegan, The
Article Writer, please visit his
blog for wit, quips,
and freelance writing tips.
Concerning a full documentation mortgage, you will be required to provide the
following information about your personal finances:
*Your most recent pay stubs -- the last two or three, typically.
*W-2 forms from the last two tax years.
*Bank statements for the past 2 or 3 months, i.e. checking, savings, etc.
*IRA, 401(k), SEP statements going back as long as 6 months to one year.
Quarterly statements are generally acceptable.
Some sub prime lenders [these are
mortgage providers who give loans to people
who do not qualify for loans from mainstream lenders due to low credit scores]
simply allow borrowers to submit bank statements for the past 1-2 years in
place of W2 forms and pay stubs. Typically, their loan rates are much higher
than they would be with a traditional lender.
Always, your mortgage provider will give you a check off list of documents
needed. By following the list closely, you can assure that your loan is
processed quickly and accurately.