It Now Takes More Time to Close a Loan; LendingTree Highlights Five Documents That Can Expedite the Process
The loan process goes more smoothly for borrowers provide recent W-2 Forms or Federal Tax Returns;
most recent year-to-date pay stub; updated statements for loans or outstanding debt;
recent bank and asset statements; and an updated Credit Report
Charlotte, NC – December 14, 2011 – (RealEstateRama) — With new regulations and policies affecting the mortgage industry and increased closing timelines for loans , LendingTree.com, the nation’s leading online lender exchange and personal finance resource, today released a list of the top five documents prospective borrowers should have before entering the loan process.
In a recent survey to lenders on the LendingTree network, 64% said the timeline for loan closings has increased. Because of record-low rates, lenders have become overwhelmed with borrowers seeking to refinance their mortgage. According to the survey, refinance loans take an average of about 45 days to close while purchase mortgages require slightly less time. In order to close the loan quickly, it’s highly recommended to have all necessary documents updated and available to provide to lenders. However, due to regulatory and policy changes in the mortgage industry, homeowners may be unaware of the documents required which further lengthens the process.
Below LendingTree outlines the top five documents prospective borrowers should have on-hand before entering the loan process.
Top 5 Documents Needed for Loan Processing
1. Copies of W-2 Forms or Federal Tax Returns from the past two years
2. Most recent year-to-date pay stub for proof-of-income
3. Updated statements for any loans or outstanding debt
4. Bank and asset statements for the last three months.
5. Updated Credit Report
“Obtaining a home loan can be an overwhelming process,” said Doug Lebda, founder and CEO of LendingTree. “Doing the groundwork before entering the loan process will allow for a smoother transaction with less frustration. Although lenders are flooded with volume, borrowers who come to the table prepared will increase lender efficiency and will allow for a shorter closing timeframe.”
Additional documentation may be required and are specific to the type of loan the borrower is seeking. When applying for a purchase mortgage for example, borrowers should have copies fully executed purchase agreement and real estate contract. For refinance loans, homeowners should also have a copy of the current homeowner’s insurance policy and the most recent mortgage statement.
About LendingTree, LLC
LendingTree, LLC is the nation’s leading online lender exchange and personal finance resource, helping consumers take charge of all their financial decisions, from budgeting to money management to mortgages to credit cards and more. LendingTree provides a marketplace that connects consumers with multiple lenders that compete for their business, as well as an array of online tools to aid consumers in their financial decisions. Since inception, LendingTree has facilitated more than 30 million loan requests and $214 billion in closed loan transactions. LendingTree provides access to lenders offering mortgages and refinance loans, home equity loans/lines of credit, and more. LendingTree, LLC is a subsidiary of Tree.com, Inc. (NASDAQ: TREE). For more information go to www.lendingtree.com, dial 800-555-TREE, join our Facebook page and/or follow us on Twitter @LendingTree.
