Items You Need When Applying For a Loan

Have These Items Ready When You Apply For a Loan

It used to be that lenders mailed out verifications to employers, banks, mortgage companies, and so on, in order to verify the data supplied by borrowers. Nowadays, the interest is often in speed and getting answers quickly so alternate documentation has become more widely used. Alternate documentation means that underwriting answers can be obtained with information supplied directly from the borrower instead of waiting around for verifications to come back in the mail.

The following is required for most standardized loans as part of alternate documentation processing. Items may differ according to whether your loan is a conforming (Fannie Mae or Freddie Mac), non-conforming (jumbo) loan, government loan, or a portfolio loan.

Verifications are still mailed out, but usually as part of quality control procedures.

These are the things you need to supply to your lender to get quick approval using alternate documentation.

Income Items

W2 forms for the last two years

Pay stubs covering a 30 day period

Federal tax returns (1040s) for the last two years, if:
- you are self-employed
- earn more than 25% of your income from commissions or bonuses
- own rental property
- or are in a career where you are likely to take non-reimbursed business expenses
Year-to-Date Profit and Loss Statement (for self employed)

Corporate or partnership tax returns (if applicable)

Pension Award letter (for retired individuals)

Social Security Award letters (for those on Social Security)

Asset Items

Bank statements for previous two months (sometimes three) on all accounts. All pages.

Statements for two months on all stocks, mutual funds, bonds, etc.

Copy of most recent 401K statement (or other retirement assets)

Explanations for any large deposits and source of those funds

Copy of HUD1 Settlement Statement on recent sales of homes

Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed

Gift letter (if some of the funds come as a gift from a family member)

Gifts can also require:
- Verification of donor’s ability to make the gift (bank statement)
- Copy of the check used to make the gift
- Copy of the deposit receipt showing the funds deposited into bank account or escrow

Credit Items

Landlord’s name, address, and phone number (for verification of rental)

Explanations for any of the following items that may appear on your credit report:
- Late payments
- Credit inquiries in the last 90 days
- Charge-offs
- Collections
- Judgments
- Liens
Copy of bankruptcy papers if you have filed bankruptcy within the last seven years

Other

Copy of purchase agreement (if you have already made an offer)

To document receipt of child support (if you desire to show it as income)
- Copy of Divorce Settlement (to show the amount)
- Copies of twelve months canceled checks to document actual receipt of fund

FHA Loans

Copy of Social Security Card (or other documentation of social security number)

Copy of Driver’s license

VA Loans

Copy of DD214

Refinances

Copy of Note on existing loan

Copy of HUD1 Settlement Statement on existing loan

Name, address, phone number, loan number of existing loan/lender

Work With Candice

My service areas include Santa Ynez Valley and Santa Barbara County Central Coast region of California including Santa Barbara, Solvang, Buellton, Santa Ynez, Goleta, Los Olivos, Lompoc and Santa Maria. My areas of specialty are newcomers to Santa Barbara County, Trust and Trustee sales, first-time home buyers, those who are looking to sell and buy simultaneously. I aim to take the stress out of all of those situations! I am also an area specialist in the town of Buellton, where I have resided for over 20 years.