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Documents Lenders Need from Home Buyers, Sonja Bush

When you get ready to purchase a home, there are certain documents that the mortgage lender is going to need from you. Having these ahead of time will speed up the lending application process.

In January 2014, the ‘Ability to Pay Rule’ went into effect. This rule requires mortgage lenders to prove a borrower can afford a mortgage before issuing a loan to them. Sadly, this was not the “norm” back in the early 2000’s.

Why This Rule Was Put Into Effect

In the early and mid-2000s, lenders often gave out mortgages without verifying whether the borrower could actually afford it. Lenders regularly skipped verifying the borrower’s income and, in many cases, offered low initial “teaser” interest rates that would eventually adjust and lift the monthly payments to an unaffordable level. This contributed to the mortgage crisis and led the country into recession.

The Dodd-Frank Act Imposes New “Ability to Repay” Rule

In response to the crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which gave the authority to both implement the new requirements of the Act, as well as adopt new rules to protect consumers in mortgage transactions. In part, the new rules set out an “ability to repay” (ATR) requirement for virtually all closed-end residential mortgage loans. (A closed-end loan is a loan that must be repaid in full by a specified date.)

Documents needed:

  • W-2
  • Pay Stubs
  • Bank Statements
  • Tax Returns – 1 to 2 years of both business and personal
  • Identification
  • Proof of Legal U.S. Residency if not a U.S. Citizen
  • Proof of Military Service
  • K-1 and Business Tax Returns for Self-Employed
  • Sources of Funds
  • Gift Letter
  • Alimony or Child Support Documents
  • Proof of Reserves
  • Cancelled Rent Checks

Sonja Bush of Mammoth Village Properties can help you prepare to purchase your first home. Call her today at (661) 979-9000 or email her at [email protected] for an appointment.

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Beautiful sunset tonight.

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Sonja was very knowledgeable and competent in selling our house in Mammoth. She is very personable and answered all of our numerous questions with courtesy, humor, and patience. Despite a greatly slowed real estate market, she sold our house in a reasonable time frame. - Stuart F.

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#nofilter Sunday evening neighborhood stroll. ❤️reflections, water, blue skies and fluffy clouds ☁️ #lovewherewelive ...

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If you have a light fixture you want to keep and take with you to your next home, take it down and replace it before you put your house on the market. You can also leave it up and "exclude" it from the sale within your listing, but it can cause issues if a buyer sees it and wants it. Avoid problems by removing it ahead of time.

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Beautiful day at the village. I love the clouds and like to look for shapes or object -- what do you see?

#mammothlakes #californialife #sierra #easternsierra #mammothlife #vacationliving #mammothlifestyle #dailylife
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Amazing two-bedroom condo next door to Canyon Lodge! Ski all season long in this cozy mountain home!

Properties Link Below:
https://www.destinationmammoth.com/properties/

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Hope everyone is having an amazing time at the Mammoth Trail Fest! If you haven't already make sure to check out this awesome event the rest of the weekend!

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Beautifully updated two-bedroom slope side condo just listed for sale. Check it out!

Link in Bio...

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What does “Months of Supply” tell us about the market?

To break it down simply:

📊Balanced Market = 6 to 7 months of supply
There are a relatively even number of buyers and sellers.

📈Seller’s Market = Fewer than 6 months of supply
There are more buyers than homes for sale, thus sellers hold the upper hand.

📉 Buyer’s Market = More than 7 months of supply
There are more homes for sale than willing and able buyers, thus buyers have more negotiating power.

Have a question about current market trends? Reach out at any time! We’re here to help you decode the lingo and make the most of today’s market 👨‍💻

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SNEAK PEAK! This two-bedroom condo next door to Canyon Lodge will be listed for sale in the next 24 hours!

Check out an early video tour now on our YouTube!

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I love working with awesome realtors like Heidi Vetter! How thoughtful is this?!” @vetter_heidi ...

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If your agent isn't available, don't call a random agent to show you a house you're interested in seeing if you plan on having your agent write an offer if you like the house. Agents don't get paid for simply showing houses, so it's inconsiderate to ask an agent to show you a house they have no chance of selling to you.

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The Mountain & Adventure Film Festival is entering its 9th year, this 3 day, free festival celebrates the best adventure films and athletes of the year. Films are shared nightly, outdoors, in the Mammoth Mountaineering Supply parking lot. Runs Thursday September 22nd - the 24th!

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What is your favorite season in Mammoth Lakes? #destinationmammoth #visitmammoth ...

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The Destination Real Estate team will definitely volunteer for the cause.

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You know, I hear there are a lot of trees in Mammoth Lakes... hmmmm...

In a study published in July 2015, a team of psychologists concluded that "having 10 more trees in a city block, on average, improves health perception in ways comparable to an increase in annual personal income of $10,000 and being 7 years younger."

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