Verifications
This verification often involves contacting a borrower's employer directly to confirm their job status and income
What is a verification of employment (VOE)?
For checking and savings accounts, this many days is required
What is 60 days?
This tax document is used to calculate the income for a self-employed borrower with sole proprietorship
What is a Schedule C?
A correct credit report is needed to calculate this crucial ratio that features a "front-end" and "back-end"
What is DTI?
This is the most prevalent type of fraud and can be seen in paystubs, tax returns, or falsified letters from a CPA
What is income fraud?
For a first time homebuyer, this document can be used to verify current housing expenses
What is a verification of rent (VOR)?
Often overlooked, the page of this document is required for underwriting
What is the last page?
This crucial document is required for anyone buying a condo
What is a condo questionnaire?
Though not required, this document can make a huge difference in how the underwriter sees your file
The best time to collect documents for the smoothest transaction and best customer experience
What is upfront?
This vital document is used to verify the value of property
What is an appraisal?
Generally considered to be more than 50% of a borrower's paystub, this requires further explanation and documentation
What is a large deposit?
When a marriage ends, this document is needed
What is a divorce decree?
This dreaded term shows in the eyes of the underwriter that there isn't enough information to grant an approval
What is suspended?
A convenient way to capture and share information - especially on a phone - this type of document is inadmissible for an underwriter
What is a screenshot?
This document is typically used to verify a borrower's annual income with the IRS
Assets over and above what is needed for the down payment and closing costs
What are reserves?
What is a bankruptcy discharge?
This versatile document written by the borrower can be used to answer a lot of an underwriter's questions
What is an LOX?
This is the first thing completed before submitting to a processor or underwriter. It often includes hard stops if not completed correctly
What is the URLA (1003)?
This tax document verifies the rental income of a borrower
What is the Schedule E?
For more security-minded borrowers, they may redact this part of the statement, requiring you to request a new copy
What is the account number?
This document is used to show fund for closing from family
What is a gift letter?
This may be a personal preference of your underwriter, or it may be dictated by your company, and correctly done will help the underwriter easily read through the vital documentation
What is the stacking order?
This assessment is included in the Debt-to-Income ratio and is often found on homes in a neighborhood but not for rural homes
What is HOA?