Documentation Needed

What Documents Are Needed When Applying For A Mortgage?

WOW! Lending guidelines sure have gotten tougher over the past year. As a result, we at First Lenders Mortgage thought it would be a good idea to provide an “UPDATED” list of what is required by banks today when applying for a mortgage! And YES! You most likely DID NOT have to provide some of these the last time you applied for a loan.

1. Last 2 Years W2’s.. If you had multiple employers in the previous years, please provide ALL W2’s for that year

2. Last 2 Years Personal Tax retures (All Schedules)

3. If Bank statements are required, please provide ALL pages (THIS IS IMPORTANT, a lot of people will simply turn in the front page of the statement but the banks require ALL pages even if “page 3 of 4” is a blank page, still gotta have it)

4. Also keep in mind if any LARGE deposits (usually $1,000 and more) or withdrawls are on the bank/asset statements, they will have to be explained and documentation provided

5. Copies of ONE months most recent paystubs

6. Copy of Mortgage Statement(s)(ALL Properties)

7. Homeowners Insurance Declaration Page (ALL Properties)

8. Copies of Drivers License

9. NEW… If you have any American Express credit cards or any other “open” style accounts. Those credit card statements will need to be provided. REASON.. Since the credit reports do not show a Minimum payment, the banks will ask to see the statement so they can calculate the minimum payment in to your debt to income ratios to qualify!

10. NEW… If you have any CREDIT INQUIRIES showing on your credit report, a specific letter of explanation will need to be provided for EACH one… REASON.. Lenders will want to make sure you are not over extending yourself credit wise or looking to open new “debt” when in the middle of applying for a mortgage.

11. If you have a Home Equity line of credit that is either being PAID OFF or Subordinated, a copy of the “note” will be needed to confirm there is NO pre-payment penalty or if terms are acceptable.

12. If you are currently NOT escrowing for Taxes and Insurance, you will need to provide a current property tax bill so the lender can calculate those into your debt to income ratios to qualify!

13. If you are taking CASH OUT (refinance) of more than $20,000, a cash out letter stating what those funds will be used for will be required..

IF YOU OWN INVESTMENT PROPERTIES OR A SECOND HOME PROVIDE THE FOLLOWING:

MUST show on tax returns (if applicable)
Copy of mortgage statement on all properties if you escrow for taxes and insurance. If you do not escrow, provide the most recent tax and hazard bills for each property. If a condo, need proof of maintenance fee
Provide sufficient RESERVES (Asset/Bank Statements, ALL Pages)

IF YOU ARE SELF-EMPLOYED, THE FOLLOWING MUST BE PROVIDED:

Copies of last 2 years Tax Returns (All Schedules) including any K1’s, 1120’s, and 1065’s (if applicable)
Copy of corporate/business returns for most recent 2 year period if owning 25% or more of company
Provide one of the following to verify the existence of the borrower’s business:

1) Letter from the business CPA, regulatory agency or professional association;

2) Business listing or yellow page ad;

3) Business License; or

4) Internet printout

(e.g. business website, government, union or professional website).

PLEASE NOTE: You only need to provide the documentation that applies to your particular income and asset situation

NOTE: NO WORK ON THE PROPERTY CAN CURRENTLY BE TAKEN PLACE!