It is not unusual for home
buyers to feel that the lender is being very picky during the loan approval
process. They have provided all kinds of information, and then the lender asks
for more. If this process is getting you down, you are not alone. It is
important to remember that, in one sense, none of this is personal!
Some lenders have more stringent requirements
than others, but every lender requires a substantial amount of documentation on
a mortgage loan. They must verify employment, credit history, and recent
financial transactions involving your liquid assets. If your Visa payment was
late, they may ask for a letter explaining why. If you are self-employed, they
will ask for tax returns from at least three years and probably a year-to-date
profit and loss statement. It is not that they don't trust you; their
regulations require them to document everything. And while the loan officer may
know that you are a good risk, the underwriters must be able to defend the loan
to a federal bank examiner or auditor.