Applying for a mortgage is like going to school. Each year you enter the next grade, and the next and so on. While some students thrive, others struggle. Perhaps they do not understand the material or they were not given the tools that they needed to succeed. Just as every student is unique in their needs, so is getting approved for a mortgage.
Individuals will have to pass to each level of approvals, some will succeed and some will be sent back to get more documentation to prove they have the financial backing and history to move to the “next grade.”
Just like when you were in school, this process requires patience, cooperation and attention to detail. Below is a list that can help you find success on your journey to home loan approval.
Verification or proof of the deposit you placed on the home
All contact information for the professionals involved (realtors, builders, insurance agents and attorneys involved.) Your lender will need the names, addresses and telephone numbers of each.
Copy of Listing Sheet and legal description of the property, if it’s available
Copies of your pay-stubs
Two years worth of copies of your W-2 forms
A list with contact information of your employers for the last two years
If there are any gaps in employment for the last two years you will need to supply a letter of explanation
If self-employed or receive commission or bonus, interest/dividends, or rental income:
Tax returns for the last two years
Year-to-date Profit and Loss statement
Copies of K-1’s for all partnerships and S-Corporations for the last two years
Completed and signed Federal Partnership (1065)
And if applicable copies of your Corporate Income Tax Returns (1120) including all schedules, statements and addenda for the last two years.
If you will use Alimony or Child Support to qualify:
Provide divorce decree or court order stating the amount received
Provide proof of receipt of funds for the prior year
If you receive Social Security income, Disability or VA benefits:
Provide an award letter from agency or organization
Source of Funds and Down Payment
If you are using funds from the sale of your home, provide a copy of the signed sales contract
If you plan to use funds from a home that is actively listed for sale you may provide a copy of the current listing agreement and provide follow-up documentation of the sale when you close
Copies of the last two years bank statements for checking, savings or money market funds
If you have stocks and bonds accounts provide copies of your account statement
If you are using a cash gift provide a Gift Affidavit and/or letter from the person who provided the funds
Debt or Obligations
If you currently own additional properties, provide copies of any mortgage statements
If you are paying alimony or child support, include marital settlement or your court order stating the terms of the obligation
This is a fairly comprehensive list, but do not be surprised if any additional documentation is requested. The fastest way to obtain approval is to provide the requested documentation in a timely manner, and if you do not or cannot supply an item that was requested, send a letter explaining why.
Please call us if you need any help obtaining any information or have questions.
The Certo Team 55 N. Arizona Place Suite #103 Chandler, AZ 85225 602-429-6789
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