Mortgage Application Checklist

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.

Suggested Reading: Home Plus Program

Items You Will Need For Your New Property

  • Copy of signed sales contract
  • 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

Your Income

  • 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 bonusinterest/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

Contact a licensed housing specialist now! 602-429-6789