Things
to Have Ready When You Apply For a Loan
It used to be that lenders mailed out verifications to employers,
banks, mortgage companies, and so on, in order to verify
the data supplied by borrowers. Nowadays, things move faster.
"Alternate documentation" has become more widely
used.
Alternate documentation means that underwriting answers
can be obtained with information supplied directly from the
borrower instead of waiting around for verifications to come
back in the mail.
The following page lists the items you will most likely
need to speed the processing of your home loan. Items may
differ according to whether your loan is a confoming (Fannie
Mae or Freddie Mac), non-conforming (jumbo) loan, government
loan, or a portfolio loan.
Verifications are still mailed out, but usually as part
of quality control procedures.
Income Items |
| -W2 forms for the last two years |
| -Most recent pay stubs covering a 30
day period |
| -Federal tax returns (1040's) for the
last two years, if: |
| -you are self-employed |
| -earn regular income from capital
gains |
| -earn sizable interest income, etc.
|
| -earn more than 25% of your income
from commissions or bonuses |
| -own rental property |
| -or are in a career where you are
likely to take non-reimbursed business expenses). |
| -Year-to-Date Profit and Loss Statement
(for self employed) |
| -Corporate or Partnership tax returns
(if you own more than 25% of the business) |
| -Pension Award letter (for retired individuals)
|
| -Social Security Award letters (for
those on Social Security) |
| -Asset Items |
| -Bank statements for previous two months
(sometimes three) on all accounts. All pages, even if
you don't think them important. |
| -Statements for two months on all stocks,
mutual funds, bonds, etcetera |
| -Copy of latest 401K statement (or other
retirement assets because they can count as reserves)
|
| -Explanations for any large deposits
and source of those funds |
| -Copy of HUD1 Settlement Statement on
recent sales of homes |
| -Copy of Estimated HUD1 Settlement Statement
if a previous home is for sale, but not yet closed |
| -Gift letter (if some of the funds come
as a gift from a family member - the lender will supply
a blank form) |
| -Gifts can also require: |
| -Verification of donor's ability to
make the gift (bank statement) |
| -Copy of the check used to make the
gift |
| -Copy of the deposit receipt showing
the funds deposited into bank account or escrow |
| Note: many get their statements of
various kinds over the internet and these are not always
acceptable to lenders, especially when the printed version
does not contain the borrower's name, account number,
and the name of the institution. |
| |
| Credit Items |
| -Landlord's name, address, and phone
number (if you rent - for verification of rental) |
| -Explanations for any of the following
items which may appear on your credit report: |
| -Late payments |
| -Credit inquiries in the last 90 days
|
| -Charge-offs |
| -Collections |
| -Judgments |
| -Liens |
| -Copy of bankruptcy papers if you have
filed bankruptcy within the last seven years |
Other |
| -Copy of purchase agreement (if you
have already made an offer) |
| -To document receipt of child support
(if you desire to show it as income) |
| -Copy of Divorce Settlement (to show
the amount) |
| -Copies of twelve months canceled checks
to document actual receipt of funds |
FHA Loans |
| -Copy of Social Security Card (or other
documentation of social security number) |
| -Copy of Driver's license |
VA Loans |
| -Copy of DD214 |
| -Refinances |
| -Copy of your most recent monthly mortgage
bill |
The following cannot hurt to have ready, but are not
as necessary as they once were: |
| -Copy of Note on existing loan |
| -Copy of HUD1 Settlement Statement on
existing loan |
| |
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About Blaine Morris, Marin Properties
As a top-producing licensed REALTOR with
Frank Howard Allen in Greenbrae, California, Blaine Morris
specializes in Central and Southern Marin County. Always just
a phone call or email away, Blaine works seven days a week
for his clients, providing them with the utmost in fast and
efficient service and follow through. Whether you are searching
for the home of your dreams, or thinking of selling it, Blaine
can turn your dreams into reality! Behind Blaine is the strength
and stability of the Central Marin office of Frank Howard
Allen, the #1 office of the #1 Brokerage in Marin County.
Contact him today at 415.925.3279 or
click here.
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