Loan Document Checklist

 Standard Documentation Required

Here is a list of documents that you will need to provide to your loan originator when applying for a mortgage loan. Some of the documentation may not apply to your loan situation:


  • Documentation is required from each applicant.
  • Documentation is in the form of a "Copy", unless otherwise specified or an Original is requested.
  • For documents that have page numbers – please provide all pages even if some pages are blank.

  • Income

    Income:


    Pay-stubs: (if a Wage Earner) - Most recent covering at least a 30-day pay period.

     

    W-2 Forms : (if a Wage Earner) - 2 most recent years, for all jobs worked in the past two years.

     

    1099-Misc Forms: This is often for self-employed / independent contractor work: 2 most recent years.

     

    Personal Federal Tax Returns: 2 most recent years – All pages and schedules. (State return Not needed).

     

    Business Federal Tax Returns: 2 most recent years – If self-employed or greater than 20 percent owner in a company – All pages and schedules. (State return Not needed).

     

    Alimony & Child Support Income: If you are divorced and receiving (or paying) child support or alimony, a divorce decree will be required, and this income typically must be scheduled for at least three more years from the time of loan closing.

  • Income – Rental Property

    Income – Rental Property


    Rental Income: Income from rental properties can typically only count if it’s listed on your tax returns. If rental income is not listed on your tax returns yet because the rental property is new/recently rented, lenders may accept the income if you provide the following documents:


    Lease Agreement (fully executed)


    Bank Statement – for proof that the first month’s rent and security deposit funds have been deposited into your bank account and cleared.

  • Income – Pension/Retirement

    Income – Pension/Retirement

     

    Pension Benefit Statement: 2 most recent years

     

    SSA-1099/Social Security Benefit Statement: 2 most recent years

     

    1099-R Forms: 2 most recent years

  • Assets

    Assets

     

    Bank Statements: 2 most recent statements for your Checking & Savings accounts – Provide all pages, even if blank but numbered.

     

    Retirement Accounts (401k, 403b, IRA, Roth IRA, etc.): 2 most recent statements – Provide all pages, even if blank but numbered.

     

    Stock or Bond Statements: 2 most recent statements – Provide all pages, even if blank but numbered.


    Profit and Loss Statement: (If self-employed or greater than 20 percent owner in a company) – Current Profit an Loss statement, showing the net worth of the business.

     

    Life Insurance Declaration Page: If you answered the question regarding the face value of your life insurance, you will need to document this with the most recent copy of your declarations page of your policy.

  • Identification Documents

    Identification Documents


    Driver’s License or State Issued Picture ID

     

    Social Security Card

     

    Permanent Resident Card (copy of Front & Back) – if applicable

  • Letters of Explanation

    Letters of Explanation


    Letters should be Signed and Dated

     

    Letters of Explanation for Credit Inquiries: Lenders will usually want to know about credit inquiries that appear on your credit report within the last 4 months. If you have any, then you will need to write a brief letter of explanation for each inquiry and the reason for the inquiry and whether any new credit was obtained as a result of the inquiry.

     

    Letters of Explanation for past addresses: if some documents contain different addresses.

     

    Letters of Explanation for derogatory information on your credit report: If any tax liens or other derogatory items on your credit report require further explanation, you will be required to provide full documentation for each item.

     

    Letters of Explanation for Large Deposits: If you have a large deposit somewhere on your bank statement (usually anything over $300) that is not your normal income, you will need to provide documentation. Sometimes this will require the letter of explanation and a paper trail as to where the money came from.

  • Purchase Transaction Documents – For real estate being purchased

    Purchase Transaction Documents – For real estate being purchased

     

    Purchase Agreement – Fully Executed

     

    All Disclosures/Addendums listed on the Purchase Agreement – Fully Executed

     

    Earnest Money Deposit – Copy of Check or Wire Confirmation


    Earnest Money Deposit – Escrow Receipt

     

    Escrow Instructions – Escrow Certified Copy

  • Existing Home

    Existing Home

     

    If you’re keeping your existing home and will be renting it out: you will need to provide a fully executed Lease Agreement and proof that the first months' rent and security deposit has been deposited into your bank account.

     

    If you intend to sell your existing home before closing on the new home: you will need to provide a fully executed Listing Agreement for the home, and your current home will need to close before your new home can close.

  • Other Properties Owned – For each property

    Other Properties Owned – For each property


    Whether you have a Primary residence; Second home; or Investment property (rental), provide the following most recent documentation for each property:

     

    Mortgage Statement

     

    Hazard/Homeowner’s Insurance Policy – “Declarations” page/s” only, showing policy details & premium amount

     

    HOA Monthly Statement – Showing monthly fee

     

    Lease Agreement (fully executed)

  • Refinance Transaction

    Refinance Transaction:


    Mortgage Statement

     

    Hazard/Homeowner’s Insurance Policy – “Declarations” page/s” only, showing policy details & premium amount

     

    HOA Monthly Statement – Showing monthly fee

     

    Lease Agreement (fully executed) – If property is rented

  • Student Loans

    Student Loans


    Deferred Installment Debts/Student Loans – Deferred installment debts, such as deferred student loans, must be included as part of the borrower’s recurring monthly debt obligations. If the borrower’s credit report does not indicate the monthly amount that will be payable at the end of the deferment period, the underwriter must obtain copies of the borrower’s payment letters or forbearance agreements so that a monthly payment amount can be determined and used in calculating the borrower’s total monthly obligations. Examples of acceptable documentation include, but are not limited to:

     

    Direct verification from the creditor

     

    Copy of the installment loan agreement

  • VA Loans

    VA Loans


    VA Certificate of Eligibility


    DD214 or Statement of Service, if Active

  • Other

    Other

     

    Business License: If you are in certain professions, the lender may want to see a copy of your business license.

     

    Divorce Decree/Documents: If required by lender.

     

    Bankruptcy Documentation: If you’ve had a bankruptcy in the past seven years, discharge papers are required.

     

    Verification of rent: (If required by lender) - If you are a renter with a private landlord, 12 months of canceled rent checks or 12 months of bank statements to show rent checks cleared on time. If you are a renter with an institutional landlord, your lender can sometimes have them to complete a Verification of Rent (VOR) form confirming on-time rent payments in lieu of cancelled checks or bank statements.


    Copy of Living Trust (Trust Particulars only) – if purchasing or refinancing a property in the name of the Trust.

Please Note regarding newly opened credit accounts– If you have recently obtained new credit accounts which have not yet been reported to the credit reporting agencies, you will need to disclose this and provide the account information showing the credit amount and minimum monthly payment, so that they can be included in your monthly debt ratios for qualifying for purchase loan. Lenders will usually obtain a new credit report prior to the loan closing and if any new credit accounts show up on your credit report which were not previously included in your loan application, it could jeopardize your loan if your new monthly payments increase your total debt ratio over the maximum allowable ratio and therefore you loan can be turned down at the last minute.

NEXT: comes the steps of verifying all the information provided in the application with documentation. A lender will provide a checklist (Preliminary Underwriting) based on your specific profile, but you can generally expect the following:

  • If you move money among accounts, you must provide all accounts even if you’re only using one account for the down payment, because the lender will review every line item on two months of full account statements and ask you to paper-trail any large deposits and withdrawals.
  • If you’re receiving gift funds, your lender will require all donors and receivers to sign a gift letter verifying the gift isn’t a loan. Some lenders want to see the donor’s accounts for verification of the donor’s ability to gift, and some only want to see the funds being received in your account.
  • If you have anything that is not covered on this checklist that is pertinent to obtaining your loan and you would like the lender to review and consider it, please include any documentation and letters of explanations.
  • Additional documentation may be required after your file has been reviewed.