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Unformatted text preview: be transferred and a new report will have to be ordered from the credit reporting agency. lithe applicant or co–applicant wishes to inquire into his or her credit, he or she must go personally to the credit–reporting agency and request to view the information contained in his or her file. The applicant or co–applicant will not be allowed to view the actual file, but will be able to see an abstract of the information in the file. The cost of these reports is usually paid by the applicant or co–applicant. SOURCE OF FUNDS LETTER
As mentioned earlier in the section on bank account verification, if the balance in a checking or savings account has had a marked increase in the past 2 months, the lender may request that the applicant or co–applicant furnish information as to the source of funds for the increase. If the source of funds is the sale of property, the applicant and co–applicant must supply a statement outlining the source and furnish a copy of the settlement statement covering the transfer of the property. If the additional funds were derived from a gift, then the lender may ask the applicant or co–applicant to furnish a statement stating that the money deposited was a gift and the giver does not expect the funds to be repaid. LOAN PACKAGING/COLLATION
After the loan application is completed and the supporting documents that will accompany the application are received, the mortgage lender will then start to gather the information required for underwriting. This collection of information is sometimes referred to as loan packaging. The loan package required by lenders will vary, but in
Dynasty School (www.dynastySchool.com) 14-19 REAL ESTATE FINANCE
the following section we will review some of the standard items that can make up a loan package. STACKING ORDER
For the underwriter of the lender to review the documentation, the file must be placed in a particular order when presented to the lender. Should items be out of place or missing, the file will probably be rejected as presented to the lender. Since each type of loan has a separate criteria list, you should use the appropri...
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- Spring '10