There are two parts to the loan process. When you initially speak with a lender about purchasing a home, that is the pre approval process for you as an individual. This is the go ahead to find the right property within a certain budget. Once you find that home and execute a contract on it, the property will also go through the loan approval process.
Documents required for ALL borrowers:
- Copies of W-2’s and tax returns for last two years.
- Copies of paycheck stubs for last 30 days (most current)
- Copies of checking and saving account statements for last two months (all pages)
- Copies of quarterly or semi-annual statements for checking, savings, IRAs, CDs, money market funds, stock, 401 K, profit sharing etc.
- Copy of Sales Contract (when available)
- Employment history last two years (address any gaps in employment)
- Residency history last two years, with name, phone number, address, and account number of landlord or a mortgage statement. For rental property; copies of leases plus mortgage information, property tax, homeowner’s insurance.
- Canceled earnest money check (when it clears) or corresponding bank statement, if applicable
- Refinance copy of note, settlement statement, survey
- Any assets used for down payment, closing cost, and cash reserves must be documented by a paper trail
- If paid off mortgage in the last year, need copies of HUD1 or release of lien.
- If own 25% or more of a business, need company tax returns for last two years
- Copy of social security card
Documents that may be required:
- Relocation Agreement if move is financed by employer, i.e. buyout agreement plus documentation outlining company paid closing costs benefits
- Previous bankruptcy need copies of petition for bankruptcy and discharge, including supporting schedule
- Divorce Decree if applicable
- Documentation supporting moneys received from social security/retirement trust income, i.e. copies of direct deposit bank statements, awards letter, evidence income will continue
Documents Needed For FHA/VA Loans:
- FHA: copy of social security card for each applicant and co-applicant
- VA: original certificate of eligibility and copy of DD214 discharge paper
- VA: name and address of nearest living relative