As a result of the trem-endous rise in foresloures the ability to document a borrowers ability to repay a loan has in my opinion gone overboard. For the last couple of years there has been an enormous amount of extra paperwork involved in a home mortgage. However, since I don’t set the rules, I must abide by what servicers and underwriters require. A few things you can expect to have to explain when you apply for a loan are:

1. Out of the norm deposits – a lender wants to make sure that you did not take out of loan to pay for a down payment. It’s also to docment any possible illegal activity or if you received money from a seller involved in your transaction.
2. Any inquiries on your credit report will have to be explained – a lender wants to make sure that if you’ve obtained any new debt that you can still afford the home.
3. Anything out of the ordinary will need to be documented by a 3rd party. Did you pay off a car? If so, I will need to document from that creditor that it is paid off.

Most with a good credit score can get a loan – just be prepared to jump through a few more hoops to get there!