From: dvw@cbnewsh.cb.att.com (diane.v.wilkerson)
Newsgroups: misc.consumers.house
Subject: Re: Mortgage Applications
Date: 23 Dec 92 19:31:19 GMT
Distribution: usa
Organization: AT&T

In article <1992Dec23.184452.17028@tessi.com> allen@tessi.com (Allen Warren) writes:
>joel@dseg.ti.com (Joel Quejada) writes:
>
>>My wife and I are planning on purchasing a house and I am wondering about
>>the things the mortgage company will be interested in finding out, i.e.,
>>what are the important points. 
>
>1.	State and Federal Income Tax Returns for the past two years.
>2.	Employment history for the past 5 years (what they told me with this
>	was that they were looking for both stability in jobs AND a pattern
>	of being in the same profession).
>3.	Addresses for the past 5 years.
>4.	Pay Stubs from my job for the past couple of months.
>5.	Bank Statements for the past 3 months.
>6.	Credit Card and loan statements for the past 3 months.
>7.	Information on Stocks and Bonds that we owned.

My mortgage company also wanted either

8a. Cancelled checks for rent payments for the previous 12 months or
8b. A statement from the rental company stating that I had paid the rent on
    time for the previous 12 months.
9.  Direct verification of employment from my company.
10. Proof that I had the resources for the down payment.

>Additionally, if ANY, and I do mean ANY "bad" items show up on a credit report,
>these items must be dealt with and resolved.  If the credit report shows that

YES!  The first thing I did before even thinking about purchasing a house
was to get a credit report from TRW, Equifax, and Trans Union, and go over
them.  I closed all accounts that were unused.  Mortgage companies generally
don't like it if you have a lot of "potential" credit.  For anything that 
showed "late" payments, I quickly wrote a letter to the credit agency listing 
all contested items, then wrote a letter to any creditors who showed late 
payments, asking them to either verify the information or to take it off of 
the reports.  The mortgage company I used merged information from both TRW and 
Trans Union.  For anything that wasn't cleared up, I had to write a letter to 
the mortgage company explaining any discrepancy.  I didn't have any problems 
after that (my car and student loan were paid off, so that might have counted 
for a lot).

>Others may have had differing experiences, but I found that the process was
>VERY, VERY irritating since it seemed that the lending institution wanted just
>gobs and gobs of papers, info., etc.  Then again, we were getting an FHA loan
>and were right at the minimums in terms of the percentages.

I don't think it matters whether it's an FHA loan or not.  I had the same
feeling, like they just should have camped out in my mailbox and checked
every bill that came in to make sure I paid it on time.  And I have to pay
them (what seems like) usurious charges as well!  Ah, well, where's that
1040?

>Hope this helps.
>
>allen


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Diane Wilkerson    | Sons and daughters, better open your eyes, 
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