When an individual has submitted his or her home loan application, submitting financial documentation is the next step in the process. Whether the application was filed online or in public, an individual is still required to provide the lender with financial information for review purposes.
Once a consumer has received and accepted the services of a lender, he or she is advised to begin the “documentation collection” process in order to be prepared for submitting the necessary paperwork.
Even though the initial application process was a success, unless the individual supplies the proper documentation and is fully approved, the consumer will not be guaranteed the services of a home loan lender.
Personal Financial Documentation
The necessary requirements will certainly depend on the lender, but here is a list of vital information the consumer can be expected and required to submit:
- IRS W-2 forms from the previous two calendar years
- Current pay stubs (Usually the previous two or three)
- All bank statements from the previous three to six months
- Documentation of any or all debt that is being compensated
- Savings and checking account information including account numbers and balances
- Social security number
As mentioned above, each lender may have other specifics that are not included in the above list; however, the general information stated above can typically be expected of the consumer regardless of the current lender.
If the consumer would like to be informed of the specific documentation requirements, he or she is encouraged to contact the lender by phone or email to clarify and verify any documentation concerns. Consumers are also advised to contact his or her local bank in order to make sure all bank statements and savings/checking account information is exact.
Home Loan Documentation Security
The personal information required is indeed very valuable. Consumers are advised to never submit information through the Internet unless the site is deemed secure. Meaning, this information should be taken directly to the lender's office rather than submitted online.
Faxing and mailing are also considered a risky option. Personal documentation viewed and transferred from one party to another via fax or mail can result in a negative situation. The fewer people who view the information, the better the consumer will fare. Personal information should never be viewed by an unwanted party. This is yet another reason why the consumer would be wise to give the information to the lender in person.
The odds of an “outsider” reading an individual’s personal financial information is unlikely, but from a security standpoint the consumer needs to feel reassured about his or her documentation submission.
Source
HomeBuyingInstitute.com
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