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Everything You Will Need to Document Your Mortgage Loan… Well Almost Everything!

February 10, 2010

Lendingladies.com is committed to educating you about the home loan process. We are not about secrets or unpleasant surprises. The checklist below is designed to help you prepare, so that your application process can go as quickly as possible. Below is a list of documents that you will be asked to provide when you apply for a mortgage. However, every situation is unique and you may be required to provide additional documentation.

Your PropertyAngela is a Loan Officer and she helps you start your Loan Process
–This sounds like a lot of paperwork, but most of these things can and will be provided by your Real Estate Agent and Title company. Your personal Loan Consultant will verify that you or your agent has turned in everything the underwriter may need.
• Copy of signed sales contract including all addendums
• Verification of the deposit you placed on the home
• Names, addresses and telephone numbers of all realtors, builders, insurance agents and attorneys involved
• Copy of Listing Sheet and legal description if available (if the property is a condominium please provide condominium declaration, by-laws and most recent budget)

Your Income
-Oh boy, now we get into the meat and potatoes, do your best on this and remember we always have someone on hand to help you digest this one bite at a time. Bon appetite!
• Copies of your pay-stubs for the most recent 30-day period that shows your year-to-date income
• Copies of your W-2 forms for the most recent two years
• Names and addresses of all employers for the last two years
• Letter explaining any gaps in employment in the past 2 years

Self-employed?
We love self-employed! There are many options for self-employed borrowers these days. Please don’t assume you have to do a stated income loan because underwriters don’t know how to read tax returns. We have helped hundreds of self-employed borrowers into excellent financing because we were not afraid to analyze their tax returns upfront, before underwriting.
If you are self-employed or receive commissions, bonuses, interest/dividends, or rental income:
• Provide both personal and business full tax returns for the last two years PLUS year-to-date Profit and Loss statement (please provide complete tax return including attached schedules and statements. If you have filed an extension, please supply a copy of the extension.)
• K-1’s for all partnerships and S-Corporations for the last two years (please double-check your return. Most K-1’s are not attached to the 1040.)
• Completed and signed Federal Partnership (1065) and/or Corporate Income Tax Returns (1120) including all schedules, statements and addenda for the last two years. (Required only if your ownership position is 25% or greater.)

If you will use Alimony or Child Support to qualify:
• Provide divorce decree and/or court order stating amount, as well as, proof of receipt of funds for last year

If you receive Social Security income, Disability, or VA benefits:
• Provide award letter from agency or organization, include 3 months direct deposit information or check stubs showing the receipt of income.

Source of Funds and Down Payment
-Are you seeing dollar signs and hearing Donald Trump’s Apprentice theme song “Money” running though your head? Well you are now! Sorry about that… Again we are here to help you document your funds. It is helpful to see your full financial picture, including all your assets. We can push guidelines and get exceptions when you show us your money.
• Sale of your existing home – provide a copy of the signed sales contract on your current residence and statement or listing agreement if unsold (at closing, you must also provide a settlement/Closing Statement)
• Savings, checking or money market funds – provide copies of bank statements for the last 3 months
• Stocks and bonds – provide copies of your statement from your broker or copies of certificates
• Gifts – If part of your cash to close, we have a whole process for gift funds. You must get a gift letter from your Personal Loan Executive with detailed instructions about how to document your receipt of funds. YOU DON’T WANT TO HAVE TO START OVER! We don’t want you to either.
• Based on information appearing on your application and/or your credit report, you may be required to submit additional documentation

Debt or Obligations
-Ah, the dreaded liability section. We all hate looking at our liabilities and what we owe (unless you are debt free, then you have reason to celebrate!). But as for the rest of us, we have to list all of our liabilities that would or should show on a credit report. This includes privately held Mortgages. If you don’t, you can be convicted of fraud. We know it is harsh, but the government wants to be sure their money backed securities are secure. It’s a long story, just be honest on your application.
• Prepare a list of all names, account numbers, balances, and monthly payments for all current debts. If these don’t show on the credit report include copies of the last three monthly statements
• Include all names, addresses, account numbers, balances, and monthly payments for mortgage holders and/or landlords for the last two years
• If you are paying alimony or child support, include marital settlement and/or court order stating the terms of the obligation
Residency
• Work visa or Legal Resident Alien card (copy front & back)

-Wow! Did that seem like a lot? Everyone has a different financial picture. Most borrowers don’t have to provide all the documentation listed here. Thank goodness for that. Remember we care for you and that means we help take care of you while collecting this documentation.

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