Pearly’s New Pad – Getting The Loan Done

Mallory asks Adam about the documents needed for a mortgage loan

 I have a better understanding of the human psyche than most of my species but even I don’t understand this human fascination with documentation. Mallory claims that’s because goldfish learn to recognize the other fish in their tank pretty quickly so we don’t constantly have to prove who we are; although I really do think the dear girl is just making excuses for humans.  Be that as it may, we’re just documenting away here, well actually I’m directing since paper and water don’t really mix well. And do we have documentation!

 Mallory asks Adam about the documents needed for a mortgage loan

But let me fill you in on the last week.  Luckily when Mallory got back from her first meeting with our loan officer, Christy, she had a better handle on what we had to get together (the documents needed for a mortgage loan) and what our hurdles are going to be. Naturally I had already told Mallory we’d need some of that, and had started to get it together. (Not that I mind, it’s always more compelling when the information comes from an authority but one would think that she’d just listen to me by now. But that’s water under the bridge.)  Christy had advised her against buying a new car and taking on more debt right now (good thing I protested that one when Mallory originally came up with it!)  and we have a good grasp of how much house we can afford.  (The one I had my eye on with the indoor pond in the solarium is just going to have to wait; it’s a little above our price range.  I figure we can add on to the one we buy in a year or two.) Remember my human tends to get a bit obsessive about projects so she was all for spending all her free time house hunting.  I needed to keep her on track with getting all the documentation together and back to Christy. No sense in finding a house and then not being able to do anything about it, right?  (I’ve got to tell you, there have been times this week when our priorities have been like oil and water.) 

Do you know the documents needed for a mortgage loan?

And, since she has her own business the documentation is more cumbersome that it might be otherwise. I imagine that people who work for a company and get one tax form have it a little easier. Good thing that Christy gave her a list; we both like checking things off lists!  Luckily we have all of her 1099 forms from all of her clients (both digitally and in paper form) which show consistent income; they’re all on firm contracts.  We might have been skating on thin ice if the clients didn’t have a contract that gave her some financial security!  I suppose that I should be grateful that she has enough clients that we can complain about all the 1099s although we did have to go on a hunt for one of them, we have moved around some and I really couldn’t tell you how that form ended up in the box of dehydrated brine shrimp.

It turned out to be a good thing that I had fueled up on those shrimp before we started proving she’s been paying half of the lease for the last two years. Since her name isn’t on the lease we had to go through all the bank statements (at least payment was electronic transfer) and make copies and then block out the expenses that got charged to the business and – well, you get the idea.  I shudder to think of what we’d do if she had been paying the roommate in cash! (And it’s not easy for a goldfish to shudder, believe me.)

You don't have to go overboard on paperwork to get a #mortgage Click To Tweet

Now, I get that she feels like she’s living in a financial fishbowl (could I tell you stories!) and I’m not going to go into the complaining she’s done. (Any gratuitous sympathy is appreciated though.)  It is what it is and all of this documentation will help us be certain that we can afford the house; I mean no sense in making an offer and then getting denied or losing the house because we didn’t have the documents needed for a mortgage loan. Suffice it to say that there’s a lot of information that is cross checked; like whether you are involved in litigation.  Guess that makes sense since no one really knows how that would affect your finances.  The one item I hadn’t thought of (luckily Christy did) was a formal “gift” letter – remember Mallory’s parents are giving her some of the down payment.  Mallory’s family are a pretty casual bunch and none of us thought of memorializing the gift. (Who in the human world comes up with these words, memorializing, really?)  But thinking about it that makes a lot of sense all around, Mallory has siblings and having this all in writing will probably preclude some troubled waters down the road.  Then there’s Mallory’s student loan debt, and the paperwork on that. (Not the easiest forms to understand are they?)

We have finally put everything together, checked off our list and Mallory will be back with Christy tomorrow to go through options. (A fish tale for another day.) Still it feels good to be diving into the Mortgage pool instead of just treading water.  Pearly

Catch the adventure from the beginning 🙂

27 thoughts on “Pearly’s New Pad – Getting The Loan Done”

  1. Christy,
    It is a process for getting a mortgage and your article makes it easier for anyone that is in the process of applying for a mortage. It’s a process and thanks for helping in the process.

    Lori English

  2. As an entrepreneur, I remember how insane all the paperwork was when I bought my house. And it’s gotten so much crazier after the housing bust. But isn’t it cool to have it done! Be careful in that financial fishbowl 🙂

  3. Such a cute post and while buying a house has lots of paperwork that needs to be filled out ….all the pre work and document prep can be a pain in the butt… for sure. Glad I have a relationship with a lender here locally and then you too… of course. When I bought my first house… nothing… HUGE difference!

  4. The paperwork to get a mortgage is an absolute nightmare. It’s been a long time since I’ve had to think about this, but I remember it well. Wish Pearly was around back them to give me these great tips.

  5. I recently renewed my mortgage but wanted to change the amortization rate and increase the principal amount, as I was sitting on too much equity that I wanted to use elsewhere! Yikes! The bank I had been with for 15 years, put me through the ringer as far as documentation and reams of paperwork. I know that banks have been tightening up on new lenders, but I honestly was ‘shocked’ at some of the questions I had to answer… like, “what are you going to do with the money?”. Seriously? I had never had a bank ask me anything like that before and as a self-employed person, it seems this might be par for the course. Glad that Perly is getting a look inside the fish tank of home buying and lending! Thanks Christy!

    1. Beverly, yes, the paperwork and questions are getting more and more as the government regulations increase both here and in other countries. A good lender (which I am sure you had)can help guide you through it all. Be sure and ask questions for anything you don’t understand. I know I never mind explaining. Christy

  6. This makes a lot of sense. One needs to prepare the paperwork first before even looking for a place. Most people do it inthe reverse order – look for a place first. When you look for a property first, sometimes, it all ends up in frustration as the money to pay for it is not there. Great sharing.

  7. Getting a mortgage can be such a pain, it’s so amazing once it’s all done though. It’s good to have everything organised and in place before applying for one, so this is a great post to check what is needed.

  8. This is so cute. It really takes some of the homebuying process and makes it easy and enjoyable. When my husband and I bought our house, thankfully, we decided to play to our strengths. He is a former attorney, so he dealt with the mortgage lenders, and I dealt with the house hunting. I knew our budget because he did that work, as well as our general parameters for our must haves and like-to-haves. So I found 5 houses that fit that, and he didn’t have to look at the other 17 I looked at. And I didn’t have to do much paperwork! WIN! Your article would have been a great help back in those days! If only I’d known you then!

  9. There is so much logic in this, especially for new home buyers. The paperwork is one of the things we all need to prepare before we ever embark on this journey. I wish I had this advice when I started off with mine.

  10. Boy, can I relate! I recently went purchase a property at a bargain price. I was putting up half in cash and you think I was borrowing the entire amount the way the bank treated me. They would keep calling and say ‘Oh, we need some more paperwork.” In the end, they turned me down because I wasn’t borrowing enough money. If I wanted I could resubmit a new loan application for the larger amount, but I would have to submit fresh copies of all the paperwork. Are you kidding! Went out and paid cash. You can count on it that I won’t be recommending that bank to anyone.

  11. What a great post – funny and educational:-) I haven’t bought a home as solely an entrepreneur yet but this will come in handy as I buy my next home! Thank you for taking some of the mystery out of it.

  12. Thankfully my husband has a “regular job” and is super organized so our home buying/refinancing experiences have not been terrible but there are always things that come up that the lender wants that you are scratching your head like “really??” In 2012 we closed on a home equity loan and during the process of checking my credit that saw that I was previously married. Like in 1992…when I was 18…got divorced in 1994. They wanted a copy of the divorce decree. So crazy. Glad things are moving along for you!

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