Picture this: it’s 2006, you can’t get You’re Beautiful by James Blunt out of your head, you’re heartbroken that Jessica Simpson just filed for divorce from Nick Lachey, and your friend is telling you about some new social networking service called “Twitter”. Your new neighbor moves in across the street from your apartment and tells you that all they had to do to get their new home was submit ONE paystub and they were done!
Man, those were the good ol’ days, weren’t they? As “easy” as those days were in the home buying market, they unfortunately put a lot of great people into homes they simply could not afford; which ultimately lead to a foreclosure epidemic. BAM: HOUSING CRISIS!
Flash forward to the present. You sign a purchase and sales agreement (and open a nice bottle of wine, yaaa!). You apply for financing and for the next 30-45 days documentation requests from your lender are being thrown at you left and right. From behind our desks at the Rock, we are constantly being asked, “Why do you need that?” and, “Why are you asking for that again?” While the answer isn’t popular, it is pretty simple: Federal Guideline Requirements.
To make sure another housing crisis doesn’t crash over our growing economy, entities like FHA, USDA, Fannie Mae & Freddie Mac have all established specific guidelines that lenders are required to follow when approving a mortgage loan.
Do I want to ask you for your Divorce Decree? No. Do I really feel like collecting a fourth paystub from you? Nope. Three years’ worth of W2s and tax returns? DEFINITELY NOT! But…do I care about you and want to make sure you’re placed in a home you can afford? Without a doubt. And finally, do I want to make sure you get into the house of your dreams? Yes – and that’s why I’m asking for things that are required to make that happen.
If you took nothing else away from this last two minutes of reading, please, take this: when asked for documentation during the mortgage process, do not be afraid!
Every single person that goes through the process is being asked for the same kind of stuff. It’s normal. And it’s all part of achieving the American Dream. So take a breath and trust your loan originator to get you to the finish line. And, above all, don’t let fear win – collecting paperwork, upon paperwork, upon paperwork doesn’t equal denial; it doesn’t equal problem; it simply equals following the law.
So let that comfort you and know that we’re here to keep you excited from contract to keys. And someday soon, you’ll be the new neighbor everyone’s talking about!