Conventional Purchase
Processing and Submission Checklist
Identification
Notes:
LSA or Processor to print, complete, sign and upload in Encompass. Does not have to be signed by LO. DL, US Passport, EAC, PERM RESIDENT Card, and Credit Report, W2, etc . Review guidelines Borrower Eligibility for EAC ineligible classifications. *If you hit auto this will be uploaded under the USA Patriot Act Form.
Perm. Res. Alien Card -Front and Back. EAC (Employment Authorization Card) check category to ensure the class is considered Eligible. Category A12 is not eligible to purchase. JPEG image and photos not allowed must be a photo copy. Have borrower download CamScanner Free| PDF Document Scanner and OCR By INTSIG Information Co.,Ltd to iPhone or Android if necessary.)
US Passport, DL, EAC check category to ensure the class is considered Eligible. Category A12 is not eligible to purchase. JPEG image and photos not allowed must be a photo copy.
Credit
Notes:
If borrower(s) live rent free with relatives prepare rent free letter. Relationship letter if borrowers are not related by marriage. Explanation of derogatory accounts. RENT FREE LETTERS: As a general rule rent history is not required on AE findings. The URLA however should indicate the rental amount , if its zero however I don’t ask for that to be substantiated unless we have the above.
Order online at Credit Technologies and upload borrower authorization. Add confirmation in Conversation Log and email to borrower letting them know to reach out CTI. Provide CTI phone number (800) 473-8221 and reference number to borrower. Review guidelines on student loans and always hit with 1% worse case scenario for FHA.
Will any account be paid at closing? If so provide payoff statement.
Required for credit scores under 640. SEND LINK TO BORROWER: https://homebuyers.mgic.com/getting-ready/getting-ready.html For HomeReady borrowers must complete: https://homeready.frameworkhomeownership.org/ . The fee for HomeReady Certificate is covered by National MI if you use them as the MI company. Reach out to local rep for coupon.
Ensure it is clear on credit report. If not clear prepare letter addressing names that may appear and borrower to state relation. .Processor to prepare at initial UW submission. This should not be a condition. https://sanctionssearch.ofac.treas.gov/
Clear alerts if any according to Consumer Fraud Alert procedure located in LENDING LIBRARY>Procedures>Processing>Fraud Alert Procedure. SSN can be cleared with SSN Validation Report. Processor to clear all Fraud Alerts on credit report at initial UW submission. This should not be a condition on the approval.
FraudGuard Report run report with all applicable parties to the transaction clear any alerts for initial submission. Processor to clear all FraudGuard Alerts at initial UW submission. This should not be a condition on the approval. Located in Encompass>Services> Order Fraud/Audit Services>FraudGuard
Place any supporting backup to clear FraudGuard Report and Credit Report alerts in this bucket.
Income
Notes:
1120, 1120S, K1, 1065 if borrower is self employed
Must be most recent 30 days use UW Income Calculation Worksheet-MASTER to calculate income.
Only required if borrower is self-employed, works for family owned business, or earning commission income greater than 25%. 1040 Record of Account Transcripts.
Only required if borrower is self-employed, works for family owned business, or earning commission income greater than 25%. 1040 Complete with all schedules.
Required for all self-employed borrowers. Use Branch Form available in PDF if borrower has not provided.
Required for all self-employed borrowers. Use Branch Form available in PDF if borrower has not provided.
If using rental income. UW Income Calculation Worksheet-RENTAL to be added in this bucket
Notes:
Assets
LP- Only one(1) month bank statement and evidence of EMD clearance
DU-Two (2) months and evidence of EMD clearance
Always check AUS findings
Copy of check and proof of withdrawal.
100% Access Letter required on all FHA loans and Brokered loans.
One (1) month most recent statement and supporting documentation such as Terms and Conditions of Withdrawal