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LOAN OFFICER KNOWLEDGE BASE

Documents & Credit Knowledge Base

A strong LO does not ask every borrower for the same giant document list. Build the request from the borrower’s actual income, assets, credit, property and program.

BACK TO KNOWLEDGE BASE

What You Need to Know

Wage earner starter set

Commonly recent paystubs, W-2s and asset statements as required by program/AUS/lender. Exact periods vary.

Self-employed starter set

Often personal/business tax returns or transcripts, YTD P&L/balance sheet or other documentation depending on program and AUS.

Assets

Request complete statements/pages as required. Verify ownership, balance, large deposits, transfers, gifts and funds needed for closing.

VA

COE/eligibility and service-related documentation can be relevant in addition to standard financial/property documents.

Refinance

Current mortgage statement, insurance/taxes, title/property information and purpose-related documentation are commonly needed.

Credit events

Bankruptcy/foreclosure/short sale or disputed/late accounts may require dates, discharge documents, explanations or other evidence.

Security

Use approved secure systems. Mortgage documents contain nonpublic personal information and should not be casually emailed/texted.

Questions to Ask — and Why

QUESTION TO ASK
WHY YOU ASK IT
WHAT THE ANSWER CHANGES
Are all pages included in this statement?
Missing pages can make the document incomplete.
Prevents repeated underwriting conditions.
What is this large deposit?
Unusual deposits may need source documentation.
Determines whether funds are eligible and properly sourced.
Did you open any new accounts after the credit report?
New debts may not appear yet.
May change DTI and disclosures.
Is the money a gift or a loan?
A gift and borrowed funds are treated differently.
Changes documentation and possibly DTI/eligibility.
Does this document match what you told me on the application?
Inconsistencies must be resolved.
Prevents unsupported application data.
Training standard: A student should be able to explain the concept in their own words, identify the borrower question that reveals it, and name the documentation or calculation that supports the answer.