Getting A Mortgage & The Tax Credit
This article goes through what you need to buy a home in this market such as having a 2 year job history, showing your paystubs, W-2s, assets, tax returns, how challenging appraisals can be, etc.
There is a lot involved in getting a loan right now and at times some of the documents requested sound absurd but they are not hard to provide and there are actually good reasons for why they are needed. What many do not understand is that when you are getting a Conventional or Government mortgage right now we all (banks, brokers, lenders, investors) have to provide the same documentation more or less because these loans all have to adhere to Fannie Mae, Freddie Mac, FHA, VA, etc. That is because they are sold in the secondary market.
I think this underwriter said it best:
A long-time underwriter wrote to me and opined, “Consumers always want more than what they can afford and we gave them exactly what they wanted for the last 10 years (without any prudent financial advice). I actually like the guideline changes and feel it is necessary to eradicate some of the broker mentality that I hear in some underwriter’s voices. Manufacturing quality is still a problem for the Agencies, and originating mortgage companies are still closing loans that are not 100% purchasable by the aggregators upon delivery. Fannie and Freddie have technology in place to turn the lender’s cash immediately, and then are rejecting the loans once they figure out all the doctoring that happened to make a square peg fit a round hole.”