Mortgage Process

In the USA, the process by which a mortgage is secured by a borrower is called origination. This involves the borrower submitting an application and documentation related to his/her financial history to the underwriter.

Many banks now offer "no-doc" or "low-doc" loans in which the borrower is required to submit only minimal financial information. These loans carry a slightly higher interest rate (perhaps 0.25% to 0.50% higher) and are available only to borrowers with excellent credit.

The following documents are typically required for traditional underwriter review.

Credit Report
1003 - Uniform Residential Loan Application
1004 - Uniform Residential Appraisal Report
1005 - Verification Of Employment (VOE)
1006 - Verification Of Deposit (VOD)
1007 - Single Family Comparable Rent Schedule
1008 - Transmittal Summary
Copy of deed of current home
Federal income tax records for last two years
Verification Of Mortgage (VOM) or Verification Of Payment (VOP)
Borrower's Authorization
Purchase Sales Agreement
1084A and 1084B (Self-Employed Income Analysis) and 1088 (Comparative Income Analysis) -- used if borrower is self-employed