Certain Requirements For Your Home Loan Lender Protection In Texas
You might be wondering why lenders ask for so much personal information.
The truth is, lenders aren’t actually nosy. They are only looking to get all of the information they need for a protected or Qualified Mortgage.
The Consumer Financial Protection Bureau (CFPB) came up with what is known as a Qualified Mortgage (QM). This is a category specified for loans that place protections for lenders from being forced to purchase back a loan if the person borrowing defaults on his/her payments. In order to qualify for this, the lenders have to abide by the guidelines set forth by the CFPB in order to determine eligibility.
In order to grant one, they must prove that they followed all of the guidelines set forth by the CFPB when handing out a mortgage to a prospective home-buyer. By getting this information including proof of a buyer’s ability to pack back the loan, the more they will be protected. This is why lenders typically ask a lot of questions and dig into details.
What Are The Qualified Mortgage Rules?
Along with the eligibility requirements which are strict, they also come with other rules including:
- Mortgages are not to have terms for a loan exceeding 30 years.
- Mortgages are not to involve any type of condition or negative amortization that can increase the amount the borrower owes.
- They cannot have balloon payments included nor can they have larger payments that only go towards the interest of the loan.
- They must have specific limits on the debt to income ratio of the borrower and they must have limits on the total amount of upfront points and various fees the buyer is subject to.
Which Documents Should You Expect Your Lender To Ask You For?
You are likely to be required to provide the various documents that follow:
- Financial statements from your accounts for the previous two months
- The last two years worth of tax returns
- A detailed list of your assets
- A gift letter sent from whoever gave you any money that helped cover either or both of the down-payment and the respective closing costs
- Your full credit report
- Any recent pay stubs you have
- A real photo ID
What Type Of Questions Should You Expect?
Below, we will go over some of the questions you can expect to impact your financial standing:
- Have you ever been divorced? If so, what were the terms of the divorce?
- Have you ever been directly involved in any type of lawsuit?
- Have you ever sold a property through a short sale?
- How long have you held your current job?
The Texas Mortgage Pros
Our team at Texas Mortgage Pros consists of all kinds of mortgage professionals scattered all over the great state of Texas. We are fully committed to providing each and every single one of our clients with the best quality of service to handle any mortgage needs you might have. We offer a combination of the lowest rates and multiple loan programs respective to the availability in your area including Dallas, Austin, Houston, Woodlands, San Antonio, Spring, and Tomball, Texas. No matter if you are a first-time buyer, purchasing a home you always dreamed of, or you are refinancing a previous loan agreement, we have a team of highly trained and experienced professional loan officers to help assist you to identify the correct loan program at the best rate for you and your family.