As an originating lender, it is important to understand the requirements of submitting a cover letter for VHDA mortgages. VHDA or Virginia Housing Development Authority is a non-profit organization that provides affordable housing options for Virginians. The submission cover letter is an important document that helps streamline the process of approving and funding a VHDA mortgage. In this article, we will discuss everything you need to know about originating lenders submission cover letter VHDA mortgage.
What is a Submission Cover Letter?
A submission cover letter is a document that accompanies your loan package. It explains the details of the loan, the borrower’s financial situation, and any other relevant information. The submission cover letter for VHDA mortgages is an important part of the loan approval process. It helps the VHDA underwriter understand the loan package and make an informed decision.
Why is a Submission Cover Letter Important for VHDA Mortgages?
The submission cover letter for VHDA mortgages helps the underwriter understand the borrower’s financial situation and the details of the loan. It also helps the underwriter to determine whether the loan meets the VHDA guidelines. The cover letter is important because it can help expedite the approval process.
What Should Be Included in a Submission Cover Letter?
The submission cover letter for VHDA mortgages should include the following:
- Borrower’s name
- Property address
- Loan amount
- Loan program
- Borrower’s income
- Borrower’s assets
- Explanation of any credit issues
- Explanation of any other relevant information
How to Write a Submission Cover Letter for VHDA Mortgages?
Writing a submission cover letter for VHDA mortgages requires attention to detail and thoroughness. Here are some tips to help you write an effective cover letter:
- Be clear and concise
- Use simple language
- Explain any credit issues or other relevant information
- Make sure all information is accurate
- Use bullet points to make the information easier to read
- Use proper grammar and punctuation
What Are Some Common Mistakes to Avoid When Writing a Submission Cover Letter?
Writing a submission cover letter can be challenging. Here are some common mistakes to avoid:
- Failing to include all relevant information
- Using technical jargon or complex language
- Providing inaccurate information
- Failing to proofread for grammar and punctuation errors
- Submitting a cover letter that is too long or too short
What Happens After the Submission Cover Letter is Submitted?
After the submission cover letter is submitted, the VHDA underwriter will review the loan package and the cover letter. If the loan meets the VHDA guidelines and the underwriter approves the loan, the loan will be funded. If the underwriter has any questions or concerns, they will reach out to the originating lender to discuss the loan package.
Conclusion
Writing a submission cover letter for VHDA mortgages is a crucial step in the loan approval process. It helps the underwriter understand the borrower’s financial situation and the details of the loan. By following the tips outlined in this article and avoiding common mistakes, you can increase your chances of a successful loan approval.