Lender Documentation Requirements

There are many documents lenders require, whether purchasing or refinancing a home. The amount of documentation required varies by lender and, at times, can be very intimidating to someone unfamiliar with the process. This is especially true now as lenders toughen up their standards in light of the recent financial crisis

Documentation requirements are different for someone who is self-employed, and are usually more stringent. For the self-employed, you may be required to provide personal Federal Income Tax Returns including Schedules for the last two years. Business owners will need to provide Business Federal Income Tax Returns for the last two years. Profit and Loss Statements for the current year and 1099 Statements may also be required. For income verification you will need two of your most recent pay stubs as well as your most recent two years of W2s. It is also important to remember that your lender will need to verify your employment, so be prepared to provide your company’s Human Resources Department contact information.

If you have rental property income, in addition to your Federal Income Tax Returns with Schedules, you may need to provide your lease agreements. Additionally, while the bank is not allowed to inquire if you receive child support, they can inquire if you pay it, and you may be required to supply your payment history.

For pension as well as social security income, you may be asked to provide two years of 1099s. The bank may also require documentation from your pension provider stating payment amount and frequency, and/or the most recent award letter with the dollar amount you will be receiving from your social security. If you have an annuity, the quarterly statement with account balance is usually adequate. You will also be required to protect your home with homeowner’s insurance. Be sure to provide your agent’s name, address, and phone and fax number to your lender.

Finally, you will be asked to provide two months of bank statements from checking/savings, any investment account statements, stock certificates, and statements for life insurance, but only if the life insurance has cash value.

When was the last time you….?

My question to you today is this – when was the last time you really listened to someone? It could be your spouse, parents, children or even friends. I know you’re sitting there thinking, I listen to people all day long. But the kind of listening I’m talking about is giving your full attention to them; not texting someone, watching tv or already thinking of your response.

By now you are probably wondering where I’m going with this question. Everyday we are hit with the numbers of pre foreclosures and layoffs that we forget that these numbers are real people. What I would like the customers of Default Research to do is, when they contact the names on the notice of default lists, to try to really listen to what these people need. Ask about them and find out how they came to be on these lists and what they need to help them out of their situation. Try to remember some of them came to be here through no fault of their own. As I stated in my previous article, try to put yourself on the other side of line when talking with them.

We here at Default Research try to listen to our customers concerns also, which is why we are always trying to improve our product. Feel free to contact us with your suggestions or ideas to help us make your job easier and we will listen to you!

Check back again for the next When was the last time you… ? article.

A HERO EVERY DAY

We certainly love our heroes, don’t we? From the football field to the stage, America has elevated certain humans to god-like stature because of what they can do, how they look, who they are, or even how much money they might have. A term that has become familiar in the past several years, however, praises the millions of “everyday heroes” who daily shame the status of stardom.

We all know at least one. If you look closely, and have a valid definition of “hero”, you will find more than one in your life. My definition includes several words – “extraordinary”, “selfless”, “goes beyond the call of duty”, “unceasing”, and “tireless”.

I knew a couple who, for 20 years, had been foster parents for the local county. They would welcome abused kids into their lives and home and family, give them love, support, encouragement, and quite often find themselves having to return those damaged children right back to the same people who had inflicted the emotional or physical wounds in the first place. Twenty years of living as heroes!!

A hero changes another’s life, sometimes forever, sometimes for a moment. A smile at the right time can make all the difference. A handshake, a word of encouragement or understanding – all of these can change the course of a life. After all, isn’t that what heroes do?

We all have daily opportunities to join the ranks of “heroism”. We don’t have to give up our lives or our homes. Our customers have that chance when they contact a homeowner in distress. How the homeowner is viewed, spoken to, or helped by an investor in Default Research’s daily lists, can make the difference. Sure, we want to profit. And yes, get something in return for our efforts. But we can be a hero to that homeowner by offering them honesty, a real effort to help, and the best advice at our fingertips. We can have patience with their panic, their mistrust, and sometimes anger.

To get beyond preconceived ideas, to offer our best, and to go the extra mile for another – all of these words are part of the hero sum total!

When was the last time you….?

So now that I have your attention and you are wondering where this question is leading , let me give you some background. Recently, the CEO of Default Research Inc handed all of us a book to read entitled Raving Fans by Ken Blanchard & Sheldon Bowles. One of the points the authors make is that “Service is so awful customers expect to be abused.”

My question to you is this - when was the last time you had great customer service? If you are like me, you can’t remember the last time someone gave you great service. When did we begin to settle for (and expect as normal) rude clerks in stores or pressing buttons hoping and praying to get a real “live” person to talk to when we try to settle an issue by telephone? One state recently spent $173,000 on politeness training for some of their employees who are in daily contact with the public. Why does a state having to train its employees to be polite when it is a common practice ingrained into most of us since childhood?

One goal we have here at Default Research Inc is to make sure you get to talk to a “real live” person when you call during our business hours. We take time to listen and appreciate your concerns and try to answer them in the best possible way in order to help you meet your goals. We didn’t spend money “training” for this, but rather attempt to deal with our customers as we would want to be dealt with if we were on the other side of the line. We sincerely hope that, if someone would ask you when you last experienced great customer service, you would answer with our name.

Check back for the next When was the last time you…? article soon.