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Document Checklist

Are you contemplating buying or refinancing a home, but worried about the amount of paperwork that will be required as part of the mortgage process? Check out this helpful checklist to guide you through the process. Remember, every document requested is important and required to ensure the lender complies with all the rules and regulations. So, even if you earn millions of dollars a year, you can expect your lender to go through the same due diligence steps as they would for any other borrower.

How To Submit Acceptable Documentation
But, before we list out the types of documents you’ll be asked to provide, it’s important to understand what is considered acceptable documentation for your mortgage loan.

  • Complete – You must include all pages of a document. For example, if your bank statement says page 1 of 6 and you’re missing just one of the pages, your lender will require you to provide the missing page, even if the missing page is blank. Your tax returns must also include all pages and schedules that were filed.
  • Legible – For example, copies that aren’t straight, have words running off the page or print that is too light may also be problematic.
  • Unaltered –It’s never acceptable to alter a document. For example, blacking or whiting out words or numbers on a page is never allowed. Handwritten notes on a document can be fine, if the original document itself, in its entirety, is completely legible.

Here’s a list of the most common documents required:

ALL BORROWERS

  • Copies of W-2’s for the last two years
  • Copies of paycheck stubs for the last 30 days (most current)
  • Copies of checking and saving account statements for the last three months (all pages)
  • Copies of quarterly or semi-annual statements for checking, savings, IRA’s, CD’s money market fund, stock, 401k, profit sharing, etc.
  • Income tax forms
  • Copy of sales contract once ratified
  • Employment history for the last two years (address any gaps in employment)
  • Residency history for the last two years, with name, phone number, address and account number of landlord or mortgage company
  • Rental property copies of leases plus mortgage information
  • Canceled earnest money check when it clears or corresponding bank statement, if applicable
  • Commissioned or bonused income – if 25% or more of the base salary, must have two years of tax returns
  • Check for the expense of appraisal and credit report
  • Refinance copy of note, deed of trust, settlement statement, survey and insurance information
  • Any assets used for the down payment, closing cost and cash reserves must be documented by a paper trail
  • If mortgage was paid off in the last two years, need copies of HUD1
  • Copy of driver’s license for applicant and co-applicants

SELF-EMPLOYED BORROWERS

  • Copies of most recent two years tax returns (with all schedules including K-1’s, if applicable)
  • Copy of current profit & loss statement and balance sheet
  • Copy of corporate/partnership tax returns for most recent two-year period; if owning 25% or more of company – copies of W-2’s and/or 1099 forms

DOCUMENTS WHICH MAY BE REQUIRED

  • Relocation agreement if move is financed by employer (e.g. buyout agreement plus documentation outlining company paid closing cost benefits)
  • Previous bankruptcy, need copies of petition for bankruptcy and discharge, including supporting schedules
  • Divorce decree if applicable
  • Documentation supporting money s received from social security/retirement trust income, i.e. copies of direct deposit bank statements, award letter, evidence income will continue for at least three years

DOCUMENTS NEEDED FOR FHA/VA LOANS

  • FHA: Copy of social security card, driver’s license for each applicant and co-applicants
  • VA: Original Certificate of Eligibility and copy of DD214 Discharge Paper; name and address of nearest relative; and childcare information

Keep in mind, there are literally hundreds of different scenarios that may require some form of additional documentation. Also, even if you don’t have everything collected, it’s smart to provide your loan officer what you do have while you compile the rest. With a little preparation and attention to detail, your mortgage process can be quick, smooth and hassle-free.

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