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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 evening for a walk with friends 🐾 Poppy and Tinker posing in paradise 😊 ...

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Lots of properties on Agent Caravan on Thursday, May 26. What is Agent Caravan?

This is an opportunity for local Realtors® to view the new listings. We do this every Thursday from 9 AM - 11 AM. Contrary to what my friends think....we are not all on a big party bus driving around town LOL!!!

This week is the biggest caravan of the year (12 properties ranging in price from $500k to $2.5M) because inventory has finally started to increase. So.....if you are looking for something to do....stop by one of these properties. Everyone is welcome! If you are working with a Realtor® be sure and tell the person at the Open House.....otherwise we think you could be a new client for us!!

I will be at 354 Joaquin #4 -- stop by and say hello and I will give you a list of the other 11 properties on caravan.
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Tonight kicks off the Mammoth Lakes Film Festival! Come see amazing films and party with the artists till Sunday! Another fun and local event for Mammoth Lakes!

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#sonjasellsmammoth #mammothcondos #mammothrealestate
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Come by and see this beautiful 3 bedroom home at 33 Kelley Road in Mammoth Lakes on Saturday, May 28. OPEN HOUSE from 2 PM - 5:30 PM.

LINK IN BIO for details.
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Preparing for summer in Mammoth like...

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"Thank you so much for your guidance and expertise in helping us to buy our dream home.
I am so grateful for your hard work and patience with all our questions at every step of the process. I genuinely trusted that you were looking out for our best interests and had our backs throughout this exciting and stressful process."

-Andrew & Cara

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Stop by and view this immaculate and beautiful 3 bedroom / 2.5 bath move in ready home. A rare find for such an amazing location and quality construction. The placement of the home on the lot is off-set from neighboring homes providing a true sense of privacy.

LINK IN BIO FOR DETAILS
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Eric Van Winkle making a difference on Town Clean Up Day this past weekend! Way to represent Eric and the Mammoth Lakes Board of Realtors! #mammothlakes #TOML #communityspirit #towncleanupday #loveourcommunity ...

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Today is the first day of Day Pass Reservations for Yosemite National Park! If you're in the area remember to make sure you have a reservation to get into @yosemite this summer!

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OPEN HOUSE
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10 AM - 1 PM

Stop by and view this immaculate and beautiful 3 bedroom / 2.5 bath move in ready home. A rare find for such an amazing location and quality construction. The placement of the home on the lot is off-set from neighboring homes providing a true sense of privacy.

LINK IN BIO FOR DETAILS
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#sonjasellsmammoth #mammothcondos #mammothrealestate
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