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Mortgage or Home loan Application paperwork
(This following is a list of items that lenders may request when you apply for home financing.)
HOME LOAN APPROVAL
General
→ Sales Contract on the property you have submitted an offer, including all addendums and Good Faith Deposit receipt.
(An offer is the same piece of paper as a contract. It is called an offer when submitted. It becomes a contract once both parties have signed and agreed.)
→ You recent address(es) for the past two years, including address and name of landlords and or financial institution with whom you had a previous mortgage.
→ Social Security Numbers of all individuals borrowing.
→ Copy of Photo ID.
→ You will probably need to write a check to pay for the application fee, appraisal, and credit report.
→ If you were renting, you may need to show proof of paid rent on time for the past 12 months.
→ Proof of final divorce settlement if divorced recently.
→ If you sold your house recently and are using proceed of the sale towards the new home you may need to show the Sale Agreement
on the sale of your home. i.e. Estimated net proceeds from the house for sale or under contract, (need copy of contract, copy of HUD-1).
→ If you have a present mortgage, name of the mortgage company and account number.
→ If you have a present mortgage, name of the Home Owners Insurance Company and account number.
→ If you graduated from High School or College in the last two years, copy of diploma or transcripts.
→ If part of your down payment is a gift, a gift letter from the lender for signature may be required.
→ If you are NOT a US citizen, provide a copy of your green card (front & back) or any VISA including A Number.
Your Income
→ Your employer(s) name(s) and address(es) for the last two years (2 yrs) including Original copies of W-2 or 1099
tax returns may be required for the last two years (2 yrs).
→ Original Pay stubs from your present employers for the most recent 30 days up to 60 Days.
→ Written or verbal proof of employment from Employer. (Human Resources -HR office phone number)
→ Letter of explanation for gap in employment.
→ Commissions and bonus received, supported by W-2 or 1099.
→ If using child support payments to qualify: proof of receipt.
→ For self-employed, financial copies of profit and loss reports, balance sheets, and tax returns for the previous three years. (3 yrs)
Your Assets
→ Your bank accounts, with name and addresses and bank account numbers be ready to provide the latest 3 months bank statements. (all statement pages included, ex: 1 of 3, 2 of 3, 3 of 3, etc)
→ You brokerage accounts including shares of stocks you own for last 3 months. (all statement pages if 1 of 3, etc)
→ You Life Insurance policies and statement showing face values, beneficiaries and cash values.
→ List of other Real Estate owned. Provide addresses, market value, mortgage values and mortgage Company names and account numbers.
Lease agreements on rental properties, (if Landlord).
→ Closing statements and copy of deed on any other home you may have sold in the last two years.
→ Copies of automobile titles, make model year market values. If you still have outstanding car loans, name address and account numbers of lenders and outstanding balance.
→ List of household items and furniture of significant value with market value.
→ Original copies of 401k and IRA account statements.
→ Other valued assets such as boats, jewelry, art, etc.
→ Proof of other income such as retirement accounts, Social Security, pension, etc.
You liabilities
→ Name of any of your creditors, their addresses, account numbers and amount of balance.
→ Copies of Car Loan Statements.
→ Credit cards, name and address of issuing banks, account numbers and present balance.
→ Child care expenses.
→ Payment amount and proof for Child support payments or alimony and duration. If divorced, copies of decrees, modifications or stipulations.
→ Insurance payments including car, health and life insurance.
→ If filed for Bankruptcy in the last 7 years, Complete copy of bankruptcy papers, Petition Decree, Schedule of Creditors, reasons and discharge document.
FHA Loans
→ Photocopy of driver license or other ID with photos.
→ Photocopy of Social Security Card.
VA Loans
→ Applicants using a VA loan will need Form DD-214 and a Certificate of eligibility.
→ For in-service veterans or recently discharge, Statement of service, Most recent Leave and Earnings Statement.
HOME LOAN QUALIFICATION
→ Full Name
→ Address
→ SSN
→ Phone number
QUALIFICATION RATIOS
All debt + tax ins + P&I < 50% gross income
OR
Housing Ratio = Monthly housing expenses / Monthly gross income.
Total Obligation = Total monthly obligations / Monthly gross income.
Conventional Mortgage
Housing Expense Ratio 28%
Total Obligation Ratio 36%
FHA
Housing Expense Ratio 29%
Total Obligation Ratio 41%
VA
Total Obligation Ratio 41%
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