The following items are traditionally used to support your application; however, you do not have to provide all of the documentation to begin the loan process. Most Mortgage Companies have the ability to submit a loan application on your behalf electronically. The information they provide in their submission will be based on a brief Q & A with you (with the documentation to support the loan submission to follow) or the summation of the material you have brought with you.
Most people like definitive answers from their Loan Officer when it comes to their ability to purchase a home. So be prepared. Your Loan Officer wants to make this as simple as possible, for you as well. As a former Loan Officer, trust me when I say this, be honest and forth coming with information. If you hide certain information or neglect to discuss certain aspects of your income, employment or credit history; your Loan Officer will more often than not come back to you with more questions. If this has happened to you or if you are still thinking that this may be the approach you want to take…. DON”T! It is one of the worst mistakes you can make. You will lose the trust of your Loan Officer.
* W-2’s / 1099’s for each applicant for the 2 most recent years. Handwritten W-2’s / 1099’s will not normally be acceptable unless accompanied with a letter from the Employers CPA. If you are providing 1099’s, be prepared to also provide complete tax returns.
* 30 days of your most recent and consecutive pay stubs. You will want to make sure that your Social Security number is on the check, your name and year to date gross amounts. If this is not the case be prepared. Provide the Loan Officer with the Persons name, address and phone to provide verification of the information they will need for income and employment purposes.
* 3 months most recent complete (all pages) banking statements. Your Loan officer will be looking for the liquid or to be liquid assets used to purchase the property and also to verify that you will have two (2) months in cash reserves. It is a common mistake to not bring a page or two of your banking statement because it has absolutely no information in it at all. In fact the only thing showing on the page is an advertisement for an IRA. If the Loan Officer gets to page 2of3 and does not have page 3of3, they will ask where that 3rd page is. Please bring all your bank statement pages.
* If you are Divorced Copy of divorce decree for each applicant that either pays or receives alimony and/or child support. If you are using the child support to qualify for your new home loan be aware of two things 1) Proof that you have received Child Support payment for the last twelve months will be required, 2) Determination of how much longer you will be receiving Child Support will be made and used in the evaluation for qualifying for your new home loan.
* If you have Filed for Bankruptcy (within the last seven years), you will need to provide a copy of your complete Bankruptcy papers and an explanation letter why you filed.
* If you currently have a property under a Purchase Contract; Copy of sales contract or purchase agreement for property being purchased. This can be provided upfront or can be obtained in the loan process.
* Other Income:
If you derive a portion of your income from social security benefits, please provide the most recent Social Security Award Letter indicating the amount of your current monthly payments from social security. If you receive income from Bonuses, Commissions or Loan repayments, please provide proof and be prepared to document.
* If you have rental properties:
Copies of current lease agreements for each residential rental property that you own and be prepared to provide tax returns.
Additional Documents for Special Sources of Income: If you derive more than 25% of your employment income from bonuses or commissions, you must also provide:
* Tax Returns (Form 1040) for the 2 previous years. If you are a sole proprietor (report income on Schedule C of your Form 1040 tax return) or if you own 25% or greater interest in the business from which you derive your primary income, you must also provide:
* Tax Returns (Form 1040) for the 2 previous years.
* Year-to-date Profit & Loss Statements for that business.
* Business Tax Returns (Form 1065 or 1120) for the 2 previous years, if the business is a corporation or partnership.
* K-1’s for that business, if it is a Subchapter S corporation or partnership.
WHEN TAX RETURNS ARE REQUIRED, PLEASE PROVIDE ALL SCHEDULES, FORMS AND ATTACHMENTS TO THE RETURNS. If you have a CPA, provide their contact information.