- General questions
- Deposit questions
- Homeowner Insurance questions
Will my personal information be sold?
We sell your information to the highest bidder on eBay. Just kidding! If you read this line, let us know and you'll receive a $5.00 Starbucks card. We do not sell your information. Often after closing your mortgage, a series of solicitations will occur. This can cause some concern about what happened to the personal information you provided as a part of your mortgage application.During Step 9 of your mortgage loan process (view pages 6-7), the Deed is recorded at the courthouse that presides over the area in which the home is located. This recording is public information and as such, is available for all to see. Companies exist that collect this information and sell it to other companies that have services to offer related to your transaction. Such services may include life insurance, alarm systems, mortgage payment plans, landscaping, and various maintenance services.If you receive solicitation, be assured that your information has not and will not be sold or distributed by MPG. Should someone ask for a confirmation of your social security number, bank account, or other non-public information, this is most likely a scam.On occasion we will complete a post-closing review of a transaction. If it is anyone from MPG, you will be properly notified. If you are unsure, contact us directly.
What language must all of my documentation be in?
English language is the required language. Documentation such as bank statements that are in a language other than English will require translation. Additionally, currencies are all calculated in United States Dollar (USD). The borrower (you) must ascertain the trade values of the currency to USD at the time of the statement and at the time of liquidation.
What is the difference between an appraisal and an inspection?
An appraisal establishes fair market value of a home for the lender, mainly looking at the size and comparable home sales in the area. The main purpose of an appraisal is to inform the lender that the home is worth at least the purchase price and meets minimum property standards for the collateral of the loan to be accepted. A structure inspection is a top to bottom review of the home to inform the borrower (you) of the home's condition and potential structural concerns.
What is a mobile notary?
It is not an app on your phone. A mobile notary is a person who is authorized by law, code, or rule to authorize and legally recognize signatures made in-person by individuals. They are able to perform the duties of a "traditional" notary, however they mobilize their role to assist in the signing process. Whether the notary is signing at your work, home, title company, or escrow office, they aid in a timely closing. Mobile notaries cannot give legal advice.
What is a salary key/code?
Some employers contract with a third-party organization to provide verification of employment (VOE) records needed for income and employment information. The borrower/buyer (you) may be asked to provide a salary key/code allowing access to your employment records. Depending on the company, your key/code is provided by your manager, HR Dept., your HR benefits booklet/information guide, your benefits coordinator or union steward. If you are unsure whether a salary key/code or special permission will be required for your loan, your Manager/HR Dept. will be able to provide more information.
What is TRID and its waiting periods?
TILA-RESPA Integrated Disclosure Rule (TRID) is a rule implemented on October 3, 2015 regulating loan disclosures to help improve borrower understanding throughout the loan process. Included with TRID are two "new" disclosures: the Loan Estimate (LE) and the Closing Disclosure (CD). The LE replaced the Truth-in-Lending disclosure and Good Faith Estimate, while the CD replaced the HUD-1 Settlement Statement. There are also waiting periods that must be adhered to. Within three business days after the loan application has been submitted and no later than seven business days before closing, the LE document must be provided to the borrower (you). Also the CD must be provided to the borrower at least three business days before closing.
Waiting Periods are New
At the beginning of the loan process disclosures are delivered to the borrower (you). We are unable to proceed with loan activity until the Intent to Proceed is provided. The CD cannot be issued until you acknowledge your final LE. Also you are not able to sign closing documents until 3 days after your "e" acknowledge your CD.
What will be required for deposits that are expense reimbursements?
Regardless of employment status, expense reimbursements* are important to document as qualifying deposits. There are many ways expenses are established and reimbursed. In general two things will be essential:
- The request of the expense reimbursement, and
- A copy of the check or direct deposit showing reimbursement
Direct deposit of expense reimbursement that is separate from regular pay will only require the corresponding expense reimbursement request. If percentages of less than 100% of actual expenses are made then the company payroll department may have to verify actual amounts paid, especially if you "keep some cash" at the time of deposit. Please note, if you receive a per diem and are not paying taxes on this fund/money, it is not usable income.
* If your company is providing you an auto allowance, this potentially may be used as income against your car loan payment.
What will be required for deposits that vary/are significant?
Certain deposits not received from payroll must be verified.
As long as you have a steady set of work hours, i.e. 40 hours per week, deposits should be the same based on each pay period. If you have vacation pay, profit sharing, bonus pay and the like, simply provide the paystub showing the receipt of these funds.
If you do not make full deposits of pay, bonus, etc., i.e. you "keep out some cash" for yourself when you make your deposit, it will be necessary in some cases to provide pay stubs and deposit receipts.
If you are not using a separate business account, it will be necessary to establish that the deposits into your personal are from your rental property(s). First source required will be a current rental agreement. Often longer term tenants are on a month-to-month basis. If the payments are consistent to the amount stated on the rental agreement, this will be acceptable. However, if there is variation, i.e. trading work on the property for rent, a current rental agreement and a copy of the agreement for variation will be required. Additionally, any out-of-date rental agreements may require an update to be "current" by signatures of your tenant(s) showing an "in force" rental or lease agreement, inclusive month-to-month agreements.
These are often the most difficult deposits to document, due to the variation of income. It will be important to have pay advice, Profit and Loss statements, records of accounts receivable, and in some cases, board resolutions to support your deposits. Ministers or other charitable leaders must show documentation of your board resolutions for parsonage/housing allowances. If you are paid consistent "draw" or salary amounts, these will be treated in the same way as a W-2 employee.
What will be required for deposits that are not customary?
This is a generic list of requirements for deposits that are not customary, however, we may request further documentation.
- What it's related to
- Taxable or non-taxable income
- Ongoing or one-time only
What will be required for deposits that result from a sale?
Anything of value that is sold with a monetary payment and deposit into your account will require documentation.
In a simple sale of belongings (car, motorcycle, rototiller, etc.), a copy of the advertisement to sell, a bill of sale, a copy of the check received, and a copy of the deposit slip and updated bank statement with the funds from the sale being deposited will be required.
For the sale of non-tangibles, such as moonlighting as a mechanic, broker of services, or partial barter/trade, these are often cash transactions. The source of these funds still must be documented.
For liquidation of stocks, equities, bonds and the like, the trade order or execution of sale will be required. If using a margin account to raise capital or if a call is made on margin, documentation of the margin transaction will be required from the broker dealer.
"Mattress" money or "tin can" money can be problematic. If you have significant cash on hand and it will be used for your loan, it will be important to document. If kept in a safe deposit box, a third party, such as a bank teller or manager, can count and verify. If kept in-home or another non-institutional location, the cash must be counted and verified by a third party, with a letter of explanation as to where the cash came from.
Deposits obtained from the sale of a home will require a copy of the home sale contract, including the purchase price, settlement statement, and bank statement.
Are you divorced, separated, or involved in legal proceedings with a former spouse?
When you are considering a divorce, considering separation, or have already made steps in that direction, there are specific requirements as part of your mortgage request. There are slight variations between the types of financing, such as Conventional, USDA, VA, or FHA, as well as variations for each mortgage application; we’ll focus on the general requirements of each.
Married – Planning on Separating, Annulling, or Divorcing
At this point there is no recognizable legal proceeding established. This allows person(s) to make an application for a mortgage as their sole estate without any additional marital documentation. If you do not want your spouse on the mortgage or title to the property, a Quit Claim Deed and in some cases an acknowledgement of the Deed and/or Settlement Statement will be required of the spouse not taking title or mortgage obligation. In short – there will have to be a discussion and some documentation with current spouse.
Already Separated or In the Process of Annulling, or Divorcing
If there are legal instructions, such as a legal separation agreement, it is imperative that these are supplied at the onset of the mortgage application. These instructions may affect your qualifying, title position, and the amount your spouse will be required to participate in your mortgage process.
All legal instructions will be followed as part of the mortgage application, i.e. if you are required by written voluntary agreement or order to pay a debt, that debt will be counted as yours. Conversely, if you are to be receiving something, such as spousal support or money for a debt and it is not consistently being received or is in an amount less than the agreement, it will not be counted or will be counted as the actual amount received. Be prepared to supply the most recent copies of checks, money orders, or other proof of monies received for the last 12 months and/or duration of agreement/order, if less than 12 months. Verbal agreements are not considered.
Divorced, Final Dissolution
We must receive a copy of the Divorce Decree. If you can’t supply the Decree in its entirety then the minimum required will be:
- Dissolution documentation
- Property settlement agreement
- Parenting plan or child support plan
Other pieces may be requested based on the contents in these documents.
What documentation is required for additional income?
For any and all income that your receive above and beyond your primary income source, documentation will be required. This applies, but is not limited to the following income sources:
- Second Job Income
- Seasonal Income
- Capital Gains Income*
- Disability Income
- Social Security Income
- Trust Income
- Stock/Dividend Income
- Pension Income
- Awarded/Settlement Income
- eBay and Auction Style Income
Acceptable documentation sources include:
- A tax return transcript issued by the IRS
- Financial institution records
- Disability award letter
- Records from a federal, state, or local government entity stating the consumer's income from benefits or entitlements
- An IRS W-2 form
- Employer records
- Receipts from a check cashing service
- Payroll statements
- Pension award letter
- Receipts from a funds transfer service
*Income arrived at from capital gains will require more information. Please call or email us to further discuss your portfolio. You may reach us at firstname.lastname@example.org or (425) 225-2850.
Is Homeowner's Insurance necessary to purchase a home?
When obtaining a mortgage to purchase your home, homeowner's insurance is required to close on a home, which is why it is so important to decide on your homeowner's insurance early in the loan process.
Within 7-9 business days of submitting your application, you should have your choice of homeowner's insurance decided and submitted to MPG. We recommend asking your auto insurance company for a quote on Homeowner's Insurance, as they tend to give you a discount, however, you are welcome to "shop around" for quotes as well. If you choose to do so, your final choice still must be decided within 7-9 business days to ensure closing occurs on time. If you'd like suggestions on an insurance agent, please let us know and we'd be happy to provide options to you.
If for any reason you are not pleased with your Homeowner's Insurance company or policy, you are not required to continue your policy with them indefinitely and are able to change to a different policy after the loan has closed.
What is required to obtain a quote for Homeowner's Insurance?
An appraisal is not required to gather quotes for Homeowner's Insurance; your insurance agent will be able to look-up most of the information. You will have the opportunity to select various levels of insurance coverage for the quote, much like the consultation you complete with MPG, you will do the same with your insurance agent. MPG is able to provide them with the Mortgagee Clause and Loan #, which will provide most of the info below.
Specific questions may vary depending on the insurance company, however the following information is a majority of what they're looking for to complete the Homeowner's Insurance quote:
- Personal Information
- Property Information:
Name, Date of Birth, Number of Home Insurance Claims in Last 5 Years, Dogs, etc.
Home's Address, Year the Home was Built, Square Footage, Market Value, Property Type, Use of Property, # of Household Members, etc.
Interior Information: # of Bathrooms, Kitchen Counter-top Material, Ceiling Height, Inside Wall Material, Floor Type(s), Primary Heating Type, # and Type of Fireplaces, Presence of an Indoor Sprinkler System, Presence of Burglar or Fire Alarm, Wiring, Fuse/Breaker Panel, etc.
Exterior Information: Exterior Siding, Roof Shape, Roof Material, Age of the Roof, Foundation Type, Basement Finish, Garage Type, etc.