Summary:

Verifying assets of a borrower usually involves checking and savings accounts. For example if a borrower’s application says the borrower has $2500.00 in their bank account as assets then the lender wants to see 2 months of the most recent bank statements to verify this money. Sounds like a no brainer to get the statements showing the money but underwriters will dissect the statements and scrutinize all deposits. In the recent past underwriters wanted documentation and explanations for all large deposits usually over $500.00 that were not from payroll or auto payments from social security or pensions. But in today’s lending environment we now have underwriters wanting explanations and documentation of all deposits no matter how big or small. This can be quite intrusive and frustrating for borrowers. The reason underwriters want verification is to reveal if the money in the account is legitimately theirs or was loaned or borrowed from relatives or from another lending institution. Either of these of course would alter either the debt ratio or would show that the borrower doest really have any assets.  If assets are needed to qualify for a loan then the path of least resistance is to use savings accounts that don’t show much activity, or  checking accounts that don’t have a lot of non-payroll deposits.

Download audio file (KKOB-2-28-Bank-Statement-s.mp3)

In addition you may need these items:

- Last 2 years tax returns if you are self-employed or commissioned paid
- Copy of your divorce decree if you collect or pay child support or alimony
- Copy of your award letter if you receive social security income
- Documentation of alternative credit if you have no history of traditional credit
- Contract of employment if you recently started a new job

Usually takes 10 – 20 minutes to complete.

Approval

For a purchase, your Realtor must have a pre-approval from Indigo Mortgage.

Disclosures

Once you are approved we must disclose loan details to you about your loan and the process.

Gathering Information – Purchase

Pre-approval documents and signed purchase Agreement

Gathering Information – Refinance

Pre-approval documents, plus, mortgage and pay-off  statements, existing survey and mortgage note

Mortgage Processing

Once we receive required documents and receive credit approval:
- We order title
- We order appraisal
- We order verifications of employment
- We verify assets

Closing Process

Once all this information is processed, we order loan closing documents from the lender and send to the  title company for your closing.

CONGRATULATIONS

The process for your new loan is COMPLETE!!!

DON’T make any major purchases (car, boat big screen TV, etc.)
DON’T apply for new credit (EVEN if you seem pre-approved)
DON’T open a new credit card
DON’T transfer any balances from one account to another
DON’T pay off charge offs without a discussion with us first
DON’T pay off collections without a discussion with us first
DON’T buy any furniture
DON’T max out or over charge on your credit card accounts
DON’T change bank accounts
DON’T consolidate your debt onto one or two credit cards
DON’T take out a new loan
DON’T start any home improvement projects
DON’T open a new cellular phone account
DON’T pay off any loans or credit cards without discussing it with your loan officer

If you encounter a special situation, it is best to mention it to your lender right away so they can help you
determine the best way to avoid any unnecessary conflicts.

• Misinformation on credit report
• Complications with verifications of rent
• Short cash to close
• Home inspection issues
• Lender or buyer required repairs
• Missing the original closing date
• House does not appraise for agreed sales price
• Additional documents required prior to closing
• Interest rates increase due to market conditions
• Unmotivated or difficult sellers
• Verification of income is less than previously stated
• Appraisal delays

Almost every transaction has minor “speed bumps.” There are hundres of things that could go wrong during the purchase of a home. This is why it is important to work with a mortgage expert. We at Indigo Mortgage will handle most of these issues behind the scenes. However, if a problem should arise that requires our attention, it is important to handle it QUICKLY and with GREAT DETAIL.