LIST OF REQUIRED DOCUMENTS FOR A HOME LOAN:
1 - Copy of two forms of ID for all borrowers on application
2 - Last two month bank statements for checking and savings accounts "All pages even blank ones are required"
3 - Latest statement from any 401k, IRA, or investment accounts "All pages even blank ones are required"
4 - 2012 & 2013 Federal income tax returns "All pages & schedules even blank ones are required"
5 - 2012 & 2013 - 1099 or W-2 forms
6 - If you are self-employed or have ownership of 25% or more in any business please provide all 2012 & 2013 1065's and or K1's from your business income.
7 - If you are self-employed or have ownership of 25% or more please provide a current year to date Profit & Loss for your business.
8 - If you are self-employed or have ownership of 25% or more please provide your current business license if applicable for your industry.
9 - Latest Mortgage statement received for all properties owned, including home equity line of credit statement if applicable.
Latest copy of your home owner's insurance declaration page showing coverage & cost breakdowns.
10 - If you have investment properties please provide latest rental agreement.
11 - Please sign and fill out the bottom of the Borrowers Certificate of Authorization on page 8.
The United States Home Mortgage Disclosure Act (HDMA) came into action several decades back. The HMDA requires that the banks and other financial enterprises collect and disclose their data about purchases, and the information related to them once a year.
The act arose out of public concern about fairness in lending, and the collected data gives the lawmakers a clear summary of what is actually taking place out in the marketplace. The idea is to insure that financial services are serving the community well, to watch for discriminatory practices. The financial institutions are obligate to report to the regulator if they rate with certain standings like large assets.
The lenders maintain a Loan Application Register (LAR) and keep track of data like: application dates, type of loan, the purpose of the loan and so forth. In March the lenders report to the Federal Financial Institutions Examination Council (FFIEC), which evaluates it and makes the information available to the general public.
The data points out situations that could affect the general public, like racial discrimination that leaves out certain classes of people from a fair shake in banking. The practice has made a contribution to fair lending practices.
THE REAL ESTATE SETTLEMENT PROCEDURES ACT
RESPA was signed into action in 1974. The law was passed unanimously by the Senate and the House to put reins on companies involved in real estate: builders, realtors, title insurance companies and so forth were regularly engaging in providing payola to one another, raising real estate prices and obscuring price competition.
For example, lenders would tell the borrower that they had to use the lender's title company. The title company would charge the client $5000 rather than $1000 and the lender would pocket $4000. It is obvious that numerous activities like this would drive real estate prices up seriously. So the lawmakers passed RESPA.
Originally HUD was responsible for RESPA, but now it is under the wings of the Consumer Financial Protection Bureau. The law requires the lenders and other parties to make the real costs of all expenses like the title search.
When you first purchased your home, the financial environment and factors like your credit rating and the amount that you could pay for a down payment influenced the interest rate that you were eligible for.
The borrower can make a "qualified written request" to the loan officer to investigate any wrong doing suspected by the borrower. The servicer has 5 days to respond and 30 days to take action. The lender faces up to $2000 in penalties if the firm is regularly involved in misbehavior. Errors occur, and some buyers consider it a wise move to engage a lawyer for reviewing the transaction.