Mortgage Documentation Requirements
When you are planning for a mortgage application, one of the most important steps you can take before you apply is to gather the documentation you may need to supply with your application. Which loan you select will determine the exact documentation requirements. As soon as we have all your documentation from you the loan will close fast and you will have what you deserve.
Documentation Process After you submit your application, we'll call you to talk about the type of loan you have chosen. Then you will be sent a Disclosure package that includes several items that you will need to sign, and a list of documents that you will need to send in. Here is a list of some of the documents you may need:
Salaried Income
-Most recent pay stub showing year-to-date income; if there have been multiple employers in the current year, all paystubs showing year-to-date income
-Last year's W-2
Salary Plus Bonus/Overtime
-Most recent pay stub showing year-to-date income
-Last year's W-2
Straight Commission Income
- Most recent pay stub showing year-to-date income
-Last two years' 1040 tax returns
Self Employed Persons (1099 recipient)
-Last two years' personal tax return and partnership or corporate tax return
-Current year-to-date P&L if tax returns are older than 12 months
-Signed IRS Tax Form 4506
Partnership Income
-Last two years' personal tax returns
-Last two years' K-1s, 1065s, P&Ls, and YTD Balance Sheets
Corporation Income (if ownership is 25% or more)
-Last two years' personal and business tax returns (1120)
-Current year-to-date P&L if tax returns are older than 12 months
Trust Income
-Trust Agreement or trustee's letter stating payment amount, frequency and duration (must continue for at least three years
-Last two years' tax returns
Rental/Lease Income
-Copy of Rental/Lease Agreements
-Last year's tax return
Social Security/Pension/Retirement/Disability (three years remaining required)
-Award Letter
-Most recent two months' bank statements (if direct deposit) or copies of checks
Interest/Dividends
-Last two years' tax returns
Copies of current statements
Alimony/Child Support
-Complete Divorce Decree
-Proof of six months' receipt (must be recieved continuously for three years to qualify as income)
Purchase Transactions
-Copy of signed Purchase Contract (include all counter offers)
-Gift Letter, if gift funds are being used: Letter includes date of gift, the amount and donor's name, address, telephone number and relationship, statement that repayment is not expected
-Document(s) verifying transfer of funds and copy of a withdrawal receipt from the donor's account or a copy of the gift check
-Certified copy of HUD-1 settlement statement from sale of present property, if applicable
-Evidence of homeowner's insurance (required prior to closing)
-Evidence of flood insurance
Credit History/Liabilities
-Bankruptcy petition and discharge papers, if applicable
-Written explanations of any serious derogatory credit if applicable:
-Bankruptcy
-Collections, judgements, liens
-Late payments - mortgage or revolving credit
-Defaults, foreclosures, short sales
-Final divorce decree, if applicable
Assets
-Most recent two months' bank statements
-Most recent brokerage account statement
-Most recent IRA/401K statement
-Gift Letter, if gift funds are being used: Letter includes date of gift, the amount and donor's name, address, telephone number and relationship, statement that repayment is not expected
Document(s) verifying transfer of funds and copy of a withdrawal receipt from the donor's account or a copy of the gift check
Certified copy of HUD-1 settlement statement from sale of present property, if applicable
Refinance Transactions
-Evidence of homeowner's insurance
-Evidence of flood insurance
Condominiums or Planned Unit Developments
-Project name, homeowner's association (HOA) name, HOA contact name and phone number.
