Without knowing the specific documents your lender is requesting it is difficult for me to answer your question definitively but lenders are required to verify the source of funds for your down payment. The lender wants to ensure that the funds you use for your down payment are not actually a loan. We provide a mortgage document checklist on FREEandCLEAR that you can review to understand the documents that lenders typically request from borrowers when they apply for a mortgage.
Please note that getting pre-approved for a mortgage is significantly different than applying for a mortgage and going through the lender's underwriting process. The lender underwriting process involves a detailed review of your personal and financial information and the underwriter may require additional documentation to approve your mortgage. Depending on the lender's guidelines and the specific underwriter who is reviewing a loan application, some borrowers may find the underwriting process intrusive. We provide a summary of the mortgage underwriting process for you to review.
If you are not satisfied with the the level of service provided by your current lender or you think they are acting unfairly, you should consider canceling the loan and switching lenders, which you can do any time prior to singing your loan documents. If you decide to switch lenders, we always recommend that you contact multiple lenders to understand how they would handle your unique situation. You can compare lenders in your area by clicking INTEREST RATES We advise you to contact at least four lenders as qualification requirements can vary. Plus, comparing lenders is the best way to save money on your mortgage. When you contact lenders be clear about the documentation they require to process your mortgage.
An important point to keep in mind if you are considering changing lenders is to make sure that the new lender can process your mortgage fast enough to meet the closing timetable to buy your home. You do not want to delay your home purchase process because you switched lenders. You should also be aware that you may be out certain up-front fees if you switch lenders.
Also, if you already have an appraisal report, the report should be transferable to your new lender, which can save you a significant amount of time. If you decide to switch lenders you should send the appraisal report to your new lender so that its underwriting staff can confirm that they will accept the appraisal. Because the appraisal report was ordered by, and issued in the name of, your original lender, the appraiser will likely be required to re-issue the report in the name of your new lender. Most appraisers charge a reduced fee ($100 - $200) to re-issue an appraisal report in the name of a new lender.
Ultimately if you find a lender that you prefer that potentially offers you better mortgage terms, then it may make sense to switch lenders but be sure to understand all the considerations.