real estate finance - full book (500 pgs)

If the source of funds is the sale of property the

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Unformatted text preview: y mentioned documents. 17. 18. If a prospective homebuyer is making application for a FHA–insured loan they will be required to provide some additional information. The Department of Housing and Urban Development requires that with all applications, the lender must require the applicant to establish picture identity and evidence of Social Security numbers at the time of the face–to–face interview. In addition the letter requires the borrower to provide a paycheck stub and if there is a verification of deposit, the lender must obtain a copy of a recent bank statement(s). Copies of these documents (that is, driver's license, identification card, Social Security card, pay stubs, and so forth) must be included as part of the application package. This is a brief review of the application information that may be required by a lender. Many lenders have prepared application information checklists. You should check with lenders in your area and secure copies of any such checklists. UNDERWRITING FORMS What happens after the application is completed? The lender verifies the employment of the borrowers. As with the application forms, various lenders have forms to verify employment, income, deposits, mortgage loan payments, rental history, and credit. In this discussion we will 14-14 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 14: THE LOAN PROCESSING examine those forms approved or authorized by Fannie Mae/ Freddie Mac, FHA, and DVA. VERIFICATION OF EMPLOYMENT Fannie Mae Form 1005, Request for Verification of Employment, is shown in Form 14– 3. The form is divided into three sections. The first section is to be completed by the lender. This section is usually completed at the time of application and is signed by the applicant. Normally the lender will have the applicant sign several of the forms, just in case the original form that is sent to the employer is lost. The second section of the form is to be completed by the present employer. The employer states that the applicant or co–applicant is still in his employment. You will notice that...
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