Financial Documentation: Understanding Why Mortgage Lenders Request the Same Ones During the Application Process
Home buyers who enter the mortgage application process with full financial documentation will have an easier qualifying for a conventional. If they can’t provide a 20% deposit to qualify for the conventional mortgage, they can still qualify for others depending on the home buyer’s status. For example, first-time home buyers have several resources and options available to them including our Mortgage House family pledge home loan.
The mortgage application process can take between four weeks to three months to complete. If the lender requests the same financial documentation more than once, they seek to update their files. Home buyers who qualify for conventional mortgages might complete the process in four weeks. Those who cannot provide payslips fall into the low doc category. Therefore, lenders must explore alternative documentation to gauge the homebuyer’s ability to repay the home loan in full and on time.
Some industries have a higher risk of layoffs. Thus, the lender will request the latest payslip to verify your income. The same goes for bank statements. Lenders want to ensure that you can maintain the same level of savings over an extended period.
When lenders request the same documentation more than once, acquire it and send it to them. By providing it, you improve your chances of acquiring a mortgage and favourable loan terms.
It works in a similar fashion for vehicle purchases such as our car loan.
Financial Documentation and Requests from Lenders Conclusion
When lenders request the same financial documentation more than once, it’s not always a cause for concern. They simply want the most recent documents. To understand the process further, contact our Mortgage House loan specialists.