Lending standards have changed dramatically and you owe it to yourself to avoid an embarrassing last minute loan denial. We encourage obtaining a loan approval before submitting an offer. You can fill out an on-line application, do an over the phone application, or stop by and visit with a team member at our office for the application. With the application, you will need the following documents:
Credit report. A comprehensive financial credit report detailing credit history along with credit scores from all three major bureaus is required through our company at no cost to you. You will receive a full copy.
All recent bank statements covering the last 30 days of transactions. The bank statement must have your name, account number, and name of institution on the document. Include all pages of the statement even if pages are blank.
Pay stubs covering at least 30 days.
W-2s or 1099’s from the previous two years.
1040 Tax statements with all attachments from the previous two years. Depending on the type of loan and employment this may not be necessary.
Financial investment documents including stock investments and all retirement accounts. Please include all pages including any blank pages.
Address(es) for the past 2 years.
Proof letters for pensions, retirement, disability, or Social Security via award letter.
Divorce decree and all attachments including any child or spousal support or separation agreement, if applicable.
Bankruptcy papers including all attachments, if applicable.
Mortgage statement(s) for all owned properties with mortgages. If no mortgage on home(s), please provide declaration insurance information for each property.
Property tax statement showing payments made are up to date.
Homeowner’s insurance declaration page. This page includes items such as the named of the insured on the policy, lien holder information, property location, yearly premium, and the name and address of the issuing insurance agency.
Form DD-214, Certificate of Eligibility, or statement from your Commanding Officer if you are on active duty.
If any disability, provide proof of disability (will waive funding fee).
CPA letter and/or business license if self-employed stating 2+ years employment in same job or field.
Profit and loss statement year to date.
Purchase Agreement – signed by all parties and all addenda.
If you are renting your current home, copy of the lease.
If you are selling your current home, copy of listing contract.
If you have sold your current home, copy of settlement statement (HUD-1)
All bank statements and paystubs will be updated throughout process. Other documentation may be necessary as well. We will notify you with status updates.
Please refrain from any major purchases or an overload on credit card purchases prior to or throughout the buying process. This can potentially affect qualifying ratios and credit scores.
Tip #1 – Document turn time
Please expedite and provide any and all documentation requested within 24 hours of request. If there are any delays, this will slow the process down and could put your loan at risk of not closing on time.
Tip #2 – Updated Documents
Please scan and email or fax any and ALL updated pay stubs and asset statements that you receive from now until closing. These will be required by underwriting to complete your loan.
Tip #3 – New debt and/or Credit Cards
Please do not incur any new debt during the closing process! If any major purchases are made or any new credit cards are open, this may disqualify you for the mortgage. Even if you are approved for a higher amount than purchasing, at minimum this will slow down closing and your loan may be at risk of not closing on time because a soft pull credit report will be pulled the day of closing.
Tip #4 – Life Changes
Please do not change jobs or positions with your company during the closing process without checking with me first. This will affect the underwriting of your loan.
If you plan on getting married or divorced during the closing process please let me know ASAP. This will affect the underwriting and documentation of your loan.
Tip #5 – Deposits
All deposits going into your accounts from now until closing whether being used for funds to close or not MUST all be verified. Please save ALL paper trail for any deposits. Underwriting needs to verify your deposits are coming from an acceptable source; your own money or gift funds if allowed.
Tip #6 – Liquidating Funds
If you plan on moving funds from one account to another you MUST save all proof of liquidation. Underwriting will require the paper trail showing the liquidation from one account and the paper trail of the deposit into the other account. Please save ALL paper trail for final loan approval.
Tip #7 – Signing Date and Cash Needed at Closing
Please make sure to keep 2 to 4 business days prior to closings open for a last minute signing appointment. This is when you will receive a call from the escrow company to schedule a time for you to sign all your final loan documents. Escrow will not schedule the time and day until documents arrive and this will not be until the very end of the closing time line. Escrow will provide a few times for you to choose from and it will be 2 to 3 business days prior to closing. The exact amount you will need for closing will not be determined until Escrow calls to schedule your signing. The Escrow Company will not accept a personal check but only a cashier’s check. If you would like to wire funds you will need to contact Escrow directly for wire instructions. The account funds are coming from MUST be from an account that has already been verified. If you would like to draw from another account, you MUST contact me to have that account verified.
Tip #8 – Leaving Town
If you plan on leaving town longer than an extended weekend from now until closing you will want to notify me ASAP. This could jeopardize your scheduled closing date.