If your pulse starts racing at the thought of all the paperwork you'll have to produce when you sit down and apply for a loan, relax. You're not alone. Sometimes even lenders feel overwhelmed by all the documents borrowers bring to their office. The important thing to remember is that there is a reason for every piece of paper you'll have to produce. Tom Smith, a vice president for Bank of America Mortgage in Charlotte, North Carolina, claims once you know the reasons for the paperwork you'll understand the process better.
Some borrowers find the whole mortgage process overwhelming.
This is especially true since today it is so easy to get credit cards and other types of credit. While the paperwork can be intimidating, Smith, who has been a loan officer and an underwriter, points out that it's not the lenders who decide what paperwork borrowers have to submit. We convey the requirements of the people we sell the loans to, such as Fannie Mae, Freddie Mac, and other investors. Fannie Mae and Freddie Mac are federally chartered stockholder-owned companies that make more money available for mortgage loans by purchasing real estate loans from lenders. Most banks and other lenders sell mortgages almost as soon as they make the loans.