What will you need with the application to get approved.
Here is a list of the information mortgage lenders will use to consider your loan application. Please fill out the application as complete as possible; let us know what you can and cannot verify and we will take it from there.
For All Loans.
Social Security Number, for borrower and co-borrower, most loans this is not required and we have a form that you can sign to verify. We will also need a copy of your Driver’s License or another suitable government issued photo ID.
For the last two years, employment dates, addresses, phone number, position and salary.
Generally for Government Loans (FHA, USDA, VA) we will need last 1 months worth of pay stubs and last 2 years W-2’s. For Conventional Loans we may only need your most recent pay stub and most recent W-2.
Check and Savings Accounts and Certificates of Deposit
Last 2 months’ statements, all pages, even if blank. We only need bank statements from accounts that have sufficient funds for closing the loan or to prove retirement income or earnest money deposit. We usually do not need statements from accounts with minimal balances and minimal transactions.
Retirement Plan and Reserves
Retirement statements (last 2 months or 1 quarterly) are needed if you are withdrawing money from retirement to bring over to your checking/savings to come to closing or if you need to show reserves. Reserves are additional assets that you do not need to spend at closing, but may be needed to show that you have additional saved funds. Typically, if you own other Real Estate, you likely will need reserves or if you have a lower credit score you may be required to have reserves. Your loan officer will advise as to home much funds you will need for Reserves. Retirement accounts will need proof that you are able to liquidate the account without have to quit or die.
Liabilities and Other Non-Mortgage Debt
Creditors names, addresses, account numbers
Monthly payments and balances. The credit report will furnish us most of this information, but not all liabilities show up on the credit report. Some Buy Here, Pay Here car loans for example do not show up. During the process your loan office will review the credit report with you and you will sign a typed loan application that lists all of your current debt. You will be signing attesting to the fact that everything is true and correct. If something is missing from your liabilities you need to disclose it to us then before it is too late. Otherwise it could crop up later in the process and the additional found debt could kill the deal.
Other income information you may need
If you’re self-employed
Most recent two years signed tax returns with all schedules. If you receive a K-1 then will need last 2 years K-1’s and also last 2 years Business tax returns.
Current balance sheet and profit and loss statement if more than two months into the new fiscal year. This can be prepared by you and needs to be signed by you.
If you have income from:
- Rental Property
- Notes Receivable
Then you will also need two years’ personal federal tax returns
If employed in family business
Personal federal income tax returns and all schedules for the past two years
If divorced or separated
Complete executed divorce decree and settlement agreement
Payment history of alimony/child support over the past 12 months, if it is a financial obligation.
If you choose to have this be considered as part of your income (you don’t have to), be prepared to provide 12 months canceled checks or bank statements reflecting income deposits.
If you had a bankruptcy
We may need complete bankruptcy papers
If you own real estate
Mortgage statements, property tax statements, insurance bill, HOA statements for each property
If you’ve sold your home but not closed:
A copy of the sales contract
If you’ve sold your home, closed, and you will use the proceeds for your new down payment:
A copy of the signed Closing Settlement Statement
If you rent
If your credit is very thin and/or your score is low then we may need to get verification that you have paid rent on time for the past 12 months. We would need to contact the management company to send them a form to complete. If your landlord is a private individual then in addition we would need last 12 months canceled rent checks or last 12 months bank statements to show rent payment. Most loans do not need rent verification.
If you’re buying a home
At some point we will need a fully executed purchase contract. For pre-approval we just need to know your target price range so we can be sure you qualify for that amount. We will go over what your payments will be and how much money you will need to come to closing with.
If a source of your down payment is a gift:
Name, address and relationship of donor.
Gift funds will be verified in both the donor and recipient’s accounts.
Note: Not all loan programs allow gifts to be part of your down payment.
For Construction/Perm Loan
Signed construction with cost breakdown, builder plan and specifications