It was not long ago that getting hundreds of thousands of dollars for a mortgage required little or no documentation. Fannie Mae and Freddie Mac had developed online loan approval systems that replaced the manual underwriting approvals by Underwriters.
Depending on many factors including down payment, credit score, income and how much debt a borrower had, reduced levels of documentation were allowed. The only variable not given consideration was a major down turn across all levels of the US economy. This caused many people to file for bankruptcy and lenders were forced to foreclose on their homes.
This recent experience has shown that evaluation of a borrower’s circumstances is critical to successful long term home ownership.
To that end, these are the items typically needed for your loan application:
- 2 recent paystubs covering 30 days of work
- A recent bank, credit union or mutual fund statement ( With all pages please, not screen shot summary)
- Your 2 most recent year’s W2’s
- 2 year’s of tax returns are needed if you are self employed, earn 25% or more of your income as commission, have rental properties or have income/loss from a partnership or LLC
- If all or part of your down payment is a gift, please let you loan officer know so the funds can be correctly documented
- Please supply a statement or contract for any recently acquired debt – like a new car or furniture
There may be other items need for your specific situation, but for most people the list above is all that is required. Please call you’re A+ Mortgage professional is you have any additional questions.