### What is a "Document Needs List" in the context of a home loan application? - [ ] A list of documents the borrower needs to provide to the seller - [x] A summary of all the documents that the lender needs from the borrower - [ ] A checklist of repairs needed on a new home - [ ] A set of instructions for how to fill out a loan application > **Explanation:** A document needs list is a summary provided by the lender outlining all the necessary documents that a borrower must submit in order to process a home loan application, such as paycheck stubs, bank statements, and tax returns. ### Which of the following is typically NOT included in a document needs list? - [ ] Paycheck stubs - [ ] Bank statements - [ ] Tax returns - [x] The property deed > **Explanation:** The property deed is typically not included in a document needs list for a home loan application. The list usually contains personal financial documents like paycheck stubs, bank statements, and tax returns necessary to evaluate the borrower's financial position. ### Why might a document needs list be more extensive for high-risk loans? - [ ] Because the borrower is usually more wealthy - [x] Because more documentation is required to assess the borrower's risk - [ ] Because the process is simpler and fewer documents are required - [ ] Because the loan amount is always larger for high-risk loans > **Explanation:** A document needs list for high-risk loans is usually more extensive because the lender requires additional documentation to thoroughly assess and mitigate the potential risks associated with lending to the borrower. ### If a borrower is self-employed, what additional document might they need to provide? - [ ] A work contract - [x] Proof of revenue - [ ] Proof of employment - [ ] A recommendation letter > **Explanation:** Borrowers who are self-employed typically need to provide proof of revenue to show consistent income flow, as opposed to regular paycheck stubs which employed individuals provide. ### Who ultimately determines the specific documents required on a document needs list? - [ ] The borrower - [ ] Real estate agents - [x] The lender - [ ] Home insurance companies > **Explanation:** The lender stipulates which documents are required on the document needs list in order to process and close a new home loan, as they need sufficient information to evaluate the financial health of the borrower. ### What action can borrowers take to expedite the approval process? - [ ] Borrow more money - [x] Gather copies of documents that relate to their financial position before applying - [ ] Change their employment - [ ] Purchase home insurance > **Explanation:** To expedite the approval process, borrowers should consider gathering copies of all relevant financial documents, such as paycheck stubs and tax returns, before applying for a home loan. ### What should applicants do if they face difficulties obtaining items on the document needs list? - [x] Address the issues directly with the lender - [ ] Skip the items and submit the application - [ ] Consult with their employer - [ ] Ignore the list and proceed with the loan application > **Explanation:** Applicants should address any difficulties in obtaining required documents directly with the lender to find a solution and ensure the loan application process moves forward smoothly. ### Which of the following documents is standard on a document needs list for employed individuals? - [ ] Employee handbook - [ ] Car registration - [x] Paycheck stubs - [ ] Original birth certificate > **Explanation:** Paycheck stubs are a standard item on document needs lists for employed individuals because they provide proof of income, which is critical for assessing borrowing capacity. ### When is a document needs list typically provided by the lender? - [ ] After the home loan is approved - [x] During the home loan application process - [ ] After the closing date is set - [ ] Prior to finding a property > **Explanation:** A document needs list is typically provided by the lender during the home loan application process to inform the borrower about what documents are required to proceed. ### Which type of document might a document needs list require to prove supplemental income? - [x] Proof of supplemental income - [ ] Utility bill receipt - [ ] Car payment receipt - [ ] Gym membership agreement > **Explanation:** If supplemental income is being considered, the document needs list might include a requirement to provide proof of supplemental income to get a full picture of the borrower's financial situation.