Loan Aplications: What You Need
For some of us, applying for a home loan sometimes feels like a daunting task. While this list seems long, it's not really that hard to comply with what you need. Remember that the end goal is home ownership, an accomplishment worth the effort. Now let’s gather our paperwork:
l Previous three months’ bank statements on all accounts.
l Statements for two months on all stocks, mutual funds, bonds, etc.
l Copy of latest 401K statement or other retirement assets
l Explanations for any large deposits and source of those funds
l Copy of HUD1 Settlement Statement on recent sales of homes
l Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed
l Gift letter (for funds from family members); donor’s bank statement; copy of gift check; copy of deposit receipt
l Landlord’s name, address, and phone number (if you rent - for verification of rental)
l Explanations for late payments; credit inquiries in the last 90 days; charge-offs; collections; judgments; liens
l Copy of bankruptcy papers filed within the last seven years
l Copy of Social Security Card l Copy of Driver’s license
l Last two years’ W2 forms
l Most recent pay stubs covering a 30 day period
l Federal tax returns (1040’s) for the last two years, if:
you are self-employed; earn regular income from capital gains; earn sizable interest income; earn more than 25% of your income from commissions or bonuses; own rental property; or you take non-reimbursed business expenses.
l Year-to-Date Profit and Loss Statement (for self employed)
l Corporate or Partnership tax returns (if you own more than 25% of a business) l Pension Award letter l Social Security Award letters
l Purchase agreement copy (if you’ve already made an offer)
l Receipt for child support payments l Copy of Divorce Settlement
l Copies of twelve months canceled checks to document actual receipt of funds
l Copy of your most recent monthly mortgage bill
l The following cannot hurt to have ready, but are not as necessary as they once were: l Copy of Note on existing loan l Copy of HUD1 Settlement Statement on existing loan
l Copy of DD214
Your lender will let you know what is necessary, and when they need it.