Friday, August 31

Gather these documents when getting ready to apply for a MORTGAGE!

When applying for a home loan, your lender will ask you for more than just an application.   Being prepared with the items listed below will help ensure a hassle-free and on-time closing.  With today's mortgage regulations, your lender is required to verify all the information you have provided on the loan application including, but not limited to, your income, assets, credit, and other real estate you may own.  Depending on the type of loan you are applying for, your lender may need some or all of the following paperwork for each borrower on the loan.

Income Documents
  • Most recent pay stubs covering the last 30 days of earnings with YTD totals
  • If you own 25% or more of any company or have rental property, Personal Federal Income Tax Returns for the past two years
  • All W-2s, K-1s or 1099s for the past two years
  • If self-employed and/or you own 25% or more of any company, all pages of business federal tax returns for the past two years
  • YTD Profit and Loss Statement and Balance Sheet for each company you own
  • Awards Letter from Social Security Administration for all social security
  • Income
  • Letter regarding pension/retirement income amount to be received for the year 
Asset Documents
  • All pages of checking and savings account statements for the past two months (All pages even if they are blank.)
  • For any large, unidentified deposits, a letter of explanation for the deposit and a copy of the item(s) that were deposited (we will let you know the threshold on this)
  • If the money transferred from another account, all pages of the statements for that account as well
  • All pages of the most recent statement for any other assets, such as bonds, stocks, cash value life insurance or money saved in retirement programs that will be used for cash to close or reserve funds
  • If using retirement account funds for the loan, the generic “terms of withdrawal” for the account along with the loan or withdrawal documentation
  • Copy of current mortgage statement(s) for all real estate you already own: current home, rental properties or vacation home. If these mortgages are not escrowed for taxes and insurance, provide the most recent annual tax bill and insurance declaration page with premium as well. Also, if the property has HOA dues, a copy of the most recent HOA dues bill.
  • If any part of the down payment or closing costs are coming from a gift from an eligible source, a Gift Letter along with proof of receipt of gift funds
  • Driver’s license(s) or passport
  • All pages of separation agreement, divorce decree or court order, if applicable
  • Name and phone number of your current landlord, if applicable
  • Most recent student loan statement(s) listing the minimum monthly payment amount. If you are currently in deferment (no payments due), proof of the payment amount(s) once they come out of deferment.
  • All pages of bankruptcy, foreclosure, short sale or deed in lieu of paperwork 
Home Purchase -- your Realtor will help you with these items! 
  • Sales Contract for the purchase of a new home
  • Homeowners insurance agent’s name and contact info
  • Homeowners’ association information with contact information if property is a condo or part of a homeowners’ association
  • Purchase Contract for current home being sold
Home Refinance
  • Copy of first mortgage statement on current home
  • If you have a second mortgage or equity line, copy of statement, note/equity line agreement
  • Copy of title insurance policy from previous closing or HUD-1 Settlement Statement
  • Copy of your homeowners insurance declarations page

Because every file is a little different, this is not an all inclusive list of items.  Upon review of your file, your lender may ask for additional documentation.  It's completely normal to be asked for items up to the day you receive the CLEAR TO CLOSE.    A good lender will explain the steps of the loan process with you and keep you updated on the loan progress.   Their job is to guide you through the lending experience for the best possible result.  

Ready to get pre-approved, find out what you qualify for, see if you qualify for any down payment assistance programs, grants, etc, contact Realtor/Broker  Dawn Selix with Freedom Realty of Texas at 979-575-6174 for a list of preferred lenders. 

Law enforcement, fire fighters, military personnel, dispatchers, 1st responders, medical professionals, educators, and other local heroes qualify for the HELPING HEROES HOME Program in the Bryan/College Station, TX and surrounding areas.  To claim your discount, sign up at if you are not currently in a buyer's rep agreement with another Realtor.  Helping Heroes Home program is offered exclusively by Freedom Realty of Texas Realtors.

No comments:

Post a Comment

My latest review

from Freedom Realty of Texas via IFTTT