Standards for underwriting are set by the two government-sponsored agencies of Fannie Mae and Freddie Mac. These two agencies set the guidelines and verification requirements for the mortgage industry. When your New Jersey Mortgage Lender is looking for documents, they are simply adhering to the standards set forth by these two agencies so that the loan can be purchased after closing. Occasionally, the documentation standards may be different if a lender is intending on keeping the mortgage loan in their portfolio, but this is a rare exception.
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Related FAQs
What is a jumbo loan?
A jumbo loan is a type of mortgage that is used for expensive properties that exceed the local conforming or high balance loan limit. These can be riskier loans for the lender as they are not protected against any losses incurred by a defaulting borrower, and as a result generally will carry a higher interest rate.
What are conforming loan limits?
A “conforming loan limit” is the maximum dollar amount of a mortgage that can be purchased or guaranteed by Fannie Mae and Freddie Mac. Those loan limits will vary depending on the county and the number of units (1-4) that the property contains. Click here for current loan limits by county
What is a conforming loan?
A “conforming loan” is a low-interest mortgage intended for borrowers with excellent credit that adheres to the limits defined by the FHFA (Federal Housing Finance Agency.)
It’s 3 weeks into the application and my lender is requesting more documents. Why didn’t they ask me for these upfront?
Many times after initial documents are reviewed your New Jersey mortgage lender will ask for additional information. This is due to the fact that questions have arrived after the review of the initial documentation that needs clarification. Many times, the documents provided will tell a story that may lead to additional questions. It is also very common after initial underwriting
I provided these documents at application. Why do they need to be updated?
Each document (including the credit report) in the mortgage application file has a finite shelf life and will need updating if it has expired by the time of the mortgage closing. Most documents are good for 90 days, however, some may have shorter expiration dates. Expiration dates can vary slightly from lender to lender.
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