Module 6: Property Documentation

Property documentation is vital during mortgage loan processing as it provides evidence that the subject property will serve as collateral for the mortgage loan, it helps determine the loan-to-value (LTV) ratio, lets lenders verify the property’s title and ensure that it is free from any liens, encumbrances, or legal issues that could affect the borrower’s ownership rights, and identify any liabilities to be taken into account for the debt-to-income (DTI) ratio for real estate owned (REO).