Full Documentation Mortgage From American Financial Resources

In recent years many lenders offered no documentation loans, or low documentation loans, and based qualification largely on a borrower's credit score. Many homeowners took advantage of these products to simplify the mortgage application and approval process because there was little paperwork involved, but others used them to take out loans they could not afford. When the number of foreclosures started to dramatically increase lenders moved away from these riskier mortgage loans, and today most borrowers apply for a full documentation mortgage. This means that evidence is supplied to back up the information in the application, and underwriters examine everything to make sure it is accurate fits the guidelines of the loan.

What is Required with a Full Documentation Home Loan?

Some of the items that will be looked at in a full documentation loan include:

• Assets - This is the money you have in savings, checking, retirement, and investment accounts, as well as the equity in other property you might own. You will be required to show a certain amount in "liquid assets", or money you have access to. You will document your assets with statements from your banks and other financial institutions.
• Liabilities - This means any debts or financial obligations such as mortgage payments, car or boat payments, student loans, credit card balances, etc. When factoring in your new mortgage payment you will need to show that payment on all of your liabilities remains below a certain percentage of your monthly income. Your liabilities are generally documented on your credit report.
• Income - You will be asked to show how much money you earn each month. For many people this is documented on the W-2 tax form they receive from their employer. You will also be asked to provide your most recent paystub to show that you are still employed and what you are making now. Documenting income gets a little more complicated for those earning commission rather than salary, or for people who are self employed. Copies of tax returns may be required to document earnings in these cases.
• Property Value - Whether you are purchasing a home or refinancing a lender will want to know the value of the property for a full documentation loan. This information is provided through an appraisal - a licensed appraiser will inspect the home, compare it against others like it that have sold recently in the same area, and establish what they believe its current market value is. Based on the guidelines of the loan you are applying for you will be able to borrow a certain percentage of that value (up to 100% for certain government mortgages!)

Request a quote for a full documentation mortgage

Interested in knowing what today's rates are? Ready to put an offer in on a new house, or considering refinancing? At American Financial Resources we make it easy to get started. Just request a quote by filling out the form on this page, submit your information online, or give us a call at 800-316-9508. We will work hard from that first phone call all the way through closing to earn your trust, and document to you why we should be your mortgage lender.