What items do I need for the Loan Application

Getting The Right Documents To Us.

 

Every loan application needs the same documentation. Whether you are working with me or any other loan officer at a different company, there are no shortcuts. 

 

 

Better, Sooner than Later, why?

 

You may hear the term pre-qualified or the term pre-approval. 

The difference is that one is an opinion and the other deals with facts and verification. That would be being Pre-Approved.

 

Being pre-approved puts you in a better spot to have your offer accepted and is based on me, your loan officer, having verified all of the information I need BEFORE you look at homes.

 

The best work I can do for you is to know you are pre-approved and become your advocate when I speak to the agents involved in your transaction!

 

To keep the process moving quickly, I will request all of your up-front documents first and foremost!

 

To do my job properly, and move the process along, I will request all of your up-front documents first and foremost!

 

 ALL BORROWERS:

I tell all of my Realtor Partners and my bank customers that I need this simple list of the approvals I need to receive from you, my 2 – 2 – 2 – 2 list, which translate into the following:

 

· 2 Years of W2s - for all employers for the past two years / or 1099s’ if you are self-employed or receiving other income from 1099.

 

· 2 Years of Tax Returns – Federal returns for the past two years.

 

· 2 Months of Bank and Asset Statements – need to show the verification of funds for your Down Payment, Earnest Money, Closing costs, and Reserves. We do not like to see large UNDOCUMENTED deposits in accounts.

 

However, if you do have large deposits, let us discuss what they are and document the source.

 

ALSO – we prefer Bank Statements, not internet activity printouts that you see when you first log on to your bank accounts. The reason being that because of security risks, those internet activity logs do not show the owner of the account or account number. THEREFORE I CANNOT DOCUMENT YOUR ASSETS.

 

 

· 2 Consecutive Pay Stubs – the underwriting guidelines for all lenders is to show 30 days of pay stubs, to show you are currently working. If by chance you are paid weekly, then I will need four consecutive pay stubs. [Remember too, that February is on a 28 / 29 day month. I may need an extra paystub for that timeframe].

 

· And, I need a copy of your driver’s license for ID purposes.

 

NOTICE: All of our paystubs and assets are being used for your loan approval. They need to be ‘fresh’ or within 30 days of closings. We certainly want to use your current documentation, and depending upon when we close your home loan, my team and I may be requesting those updated items.

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ALL BORROWERS:

· Copies of quarterly or semi-annual statements for checking, savings, IRAs, CDs, money market funds, stocks, 401k, profit sharing, etc.;

· Employment history for the previous two years (address any gaps in employment);

· Residency history during the past two years, with name, phone number, address and account number of land or mortgage company; for rental property, copies of leases.

 

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SELF-EMPLOYED BORROWERS:

· Copies of your past two years’ tax returns and business tax returns (with all schedules, including K-I's if applicable)

· Copy of current profit and loss statement and balance sheet;

· Copy of corporate/partnership tax returns for the last two years if owning 25% or more of company plus copies of W-2s and / or 1099 forms.

 

DOCUMENTS THAT MAY BE REQUIRED:

· The relocation agreement. If the move will be financed by an employer (i.e., buyout agreement plus documentation outlining company-paid closing costs benefits);

· If you have had a previous bankruptcy, bring copies of the petition for bankruptcy and discharge, including supporting schedules.

· Divorce decree (if applicable).

· The documentation supporting monies received from Social Security/retirement trust income, i.e., copies of direct deposit bank statements, awards letter, or evidence of your income will continue.

 

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DOCUMENTS NEEDED FOR FHA/VA LOANS:

· FHA: Copy your driver's license for each applicant and co-applicants.

· VA: Original certificate of eligibility and a copy of DD214 discharge paper.

· VA: if still in service, your LES and statement of service.

· VA: Name and address of the nearest living relative.

 

 

 

ONCE YOUR OFFER IS ACCEPTED:

· A copy of the sales contract when accepted.

· A copy of your earnest money check and the canceled earnest money check when it clears the corresponding bank statement.

· Check for the expense of an appraisal.

· Any assets used for the down payment. The closing costs and cash reserves must be documented by a paper trail.

 

 

An important reminder

IMPORTANT NOTES About Assets – In the world of mortgage lending, lenders, including First State Bank Mortgage, do not like to see large deposits into your checking, savings, etc., that cannot be documented. If you have any questions when it comes to deposits, please call me. Remember, cash is not a documentable asset!

 

 

If you need some specific information, please contact me by email at JYarrington@fsbfinancial.com.