Commonly Required Documents

When purchasing a home and items required in the sales contract:

  1. Sales Agreement/Contract
    1. Sales agreement/Contract
      1. Fully signed contract is required for underwriting however, initial unsigned one is acceptable to get the loan started and rate locked in. As long as there is an agreement and a verbal commitment from both buyer and seller.
    2. Cancelled Hand money/Deposit Check
      1. A copy of the cancelled check that was used for “hand money /deposit” given to the realtor for the subject property, must include the back of the check which will include bank numbers that show the check was routed.
    3. Transaction History Showing Hand Money/Deposit check cleared account
      1. This from (Borrowers) bank account, showing the check (Hand Money/Deposit) has cleared. Must be from the date of the last bank statement to present day. If you generate your transaction history from the bank’s website, make sure your printout includes the URL so the Underwriter can see the website (source) information.
    4. Invoices for transaction related items
      1. The closing department requires all invoices from related services like home inspection, pest inspection, radon inspection, survey’s, home warranties, etc. We use these invoices to prepare a closing disclosure (document used to display the true and total cost of purchasing a home) at the end of the transaction.

Income Documentation for Purchasing and Refinancing:

  1. If Employed
    1. Paystubs
      1. one month of most recent paystubs for All Borrowers/Co-Borrowers from all current employers.
    2. W-2 Forms
      1. Last 2 years for All Borrowers/Co-Borrowers. Submit last three years if tax returns have not yet been filed
    3. Verification of Employment
      1. From an Employer’s HR Dept, Supervisor, and/or third party service in some cases for All Borrowers/Co-Borrowers. A phone number given for employment verification must be traceable to the employment company — (a supervisor’s cell phone or home phone numbers are not acceptable).
    4. Commissioned income or 1099 income
      1. Federal tax returns are requested if there is any kind of income or loss from Schedule C, self-employed, sole-proprietor ownership in any kind of company (1099 income), or if there is a large amount of commission income (compared to overall income), any unreimbursed expenses, investment income and/or annuity income needed to qualify for the mortgage loan you are applying for. Submit returns for the last 2 years. Be sure to include page 2, signed and dated, and ALL schedules.
      2. Last two years 1099’s to be included if borrower is an independent contractor
  2. Retired
    1. Pension Benefits
      1. Submit Pension Award letter
      2. 2 years 1099-R
      3. Most recent 2 bank statements showing the deposit of benefits
    2. Social Security Benefits
      1. Submit most recent Benefits Award Letter
      2. last 2 years 1099-R.
      3. Most recent 2 bank statements showing the deposit of benefits
    3. Interest and Dividends
      1. Federal Income Tax Returns – Note: If an Extension has been filed, a copy of the signed Extension along with the previous 2 years’ federal tax returns is required. Note: page 2 of the federal returns must be signed by both borrowers for any years used
      2. Asset statements from interest and dividends must be provided. Last two months all pages. Note: if funds are being liquidated for a purchase, the same income amounts may be decreased due to the fact that the funds will no longer be available to generate income.
    4. Retirement account distribution
      1. 401K or IRA distributions can be used by providing account statements all pages for the last two months showing the distribution. Note: Underwriting wants the account to have enough money in it to have the distributions continue at the same level for 3 years. Ex. If 1000 dollars a month is being used than the accounts must total at least 36,000 dollars to show the 3 year continuance of income.
      2. Most recent 2 bank statements showing the deposit of distribution
  3. Disability Benefits
    1. SSDI/Private disability
      1. Submit disability benefits Award Letter
      2. Most recent 2 bank statements showing the deposit of benefits
      3. Last two years 1099
  4. Self-Employed – Considered self-employed if a borrower owns more than 25% of the business.
    1. Business Federal Tax Returns
      1. Federal Business Tax Returns are requested if an individual has a 25% or larger share of ownership of a business. We would also need proof of the percentage of ownership, which could be a letter from your accountant or the company’s CPA. Submit returns for the last 2 years, including ALL federal schedules. Page 2 of the return must be signed by the borrower who owns the business
    2. Personal Federal Tax Returns
      1. Federal tax returns are requested if there is any kind of income or loss from Schedule C, self-employed, self-proprietor ownership in any kind of company (1099 income), or if there is a large amount of commission income (compared to overall income), any unreimbursed expenses, investment income and/or annuity income needed to qualify for the mortgage loan you are applying for. Submit returns for the last 2 years. Be sure to include page 2, signed and dated, and ALL schedules.
    3. Extensions Income Tax Returns
      1. If an Extension has been filed, a copy of the signed Extension along with the previous 2 years federal tax returns is required.
    4. P&L
      1. P&L’s are required for current year business. They do not need to be prepared by a CPA, although it is recommended
      2. P&L’s are required for previous calendar year if an extension has been filed or taxes have not yet been filed for current tax year.

Documenting Assets for Purchases and Refinances: Note not all refinances require asset documentation however it is always good to provide bank statements initially.

  1. Verifying Assets, we will require documentation to show where the funds for the purchase are coming from as well as any required financial reserves. Note: reserves are required only for specific types of borrowers. Speak to your Mortgage Advisors to see if you need reserves on your transaction.
    1. Bank Statements
      1. Submit ALL pages (front and back) for 2 most recent months for all Checking and Savings Accounts. Any bank statement submitted must include the account number, and Borrower’s name and address. Internet generated statements (i.e. printed ‘screen shots’ are not acceptable as they do not include all the pertinent information required. Some area banks issue bank statements without account numbers and name and address (for security purposes). If your bank does this, you can take your statement into one of your bank’s branches and have the bank teller/representative handwrite your account number and name/address on the page, and stamp and sign the paper, certifying it is legitimate.
    2. Bank Deposits in bank statements
      1. Large Deposits
        1. Any Large Deposits made within a statement cycle that are not regular deposits (like a payroll deposit would be) would need to be sourced. The Underwriter must be able to verify the funds are from an acceptable source.
          1. Example 1: If you receive a bonus and deposit it into a bank account, we would need a copy of the bonus check along with a brief letter of explanation of what the deposit is. The letter would have to be signed and dated by All Borrowers.
          2. Example 2: If you take a loan out against your 401k and deposit the money into a bank account, we would need a copy of the check issued to you along with the paperwork from the 401k loan provider, and a brief letter of explanation, signed by All Borrowers.
          3. Example 3: If you sell a vehicle and deposit the proceeds into your bank account, we would need a copy of the Bill of Sale/Transfer Title showing it had been paid, and a brief letter of explanation, signed by All Borrowers.
          4. Bank Deposits – Transfer of Funds Any transfer of funds must be sourced by providing a statement and/or transaction history of the original account it came from. Plus two months history of the original account.
    3. Asset Statements
      1. 401k, stocks, bonds, IRA, mutual funds, etc. – submit ALL pages (front and back) of most recent month/quarter

Identification

  1. Every borrower must supply a non expired valid government issued
    1. Acceptable ID’s
      1. Drivers license All Borrowers/Co-Borrowers (must be non-expired)
      2. Passport
      3. Non driver photo ID
    2. Secondary form of social security verification required
      1. W-2’s suffice for secondary social security verification
      2. Social Security cards may be required for borrowers who are either self employed or not employed
      3. SS89 form may be used in absence of Social Security card

Residency Status

  1. Different Residency statuses required documentation
    1. US Citizen
      1. just government issued ID suffices
    2. Permanent resident alien
      1. Copy of unexpired green card Front and Back
    3. Non Permanent Resident Alien
      1. Copy of Valid Visa stamp in Passport
      2. If Visa is expired
        1. Copy of approved petition from the USCIS
        2. Please note not all Visa types are accepted
    4. Other Residency Statuses
      1. Typically if you are eligible to work and have an employment authorization card or EAC then underwriting accepts the income that is earned as part of the application.

Homeowner’s Insurance/Hazard insurance

  1. Homeowners insurance and Hazard insurance names that are used interchangeably.
    1. Submit the Declaration page of your policy for the subject property or the Agent’s name and contact information. The policy must be for guaranteed replacement coverage.
    2. Often times the name and phone number of your insurance agent will suffice. For purchase transaction please make sure you accept their quote. We will take care of the rest.

For all properties owned at the time of closing. This includes Second Homes, Retaining a departure residence, and investment properties.

  1. Mortgage Statements
    1. Submit for All Properties currently owned by All Borrowers/Co-Borrowers. Submit the most recent Mortgage Statement
      1. If loan is not escrowed, then most recent tax and insurance bills for each property owned must be submitted
  2. Home – Owned Free and Clear (no liens, no encroachments) –
    1. For a property owned free and clear, we need some form of documentation proving there is no outstanding mortgage (the payoff statement, a current home insurance statement which does not have a loss/payee clause for a mortgage company, etc.).
    2. If the loan does not contain escrow account or property is free and clear
      1. we will need the most recent tax and insurance bills.

If rental property is owned

  1. Mortgage statements
    1. Submit the most recent Mortgage Statement for all properties owned; If not escrowed, then most recent tax and insurance bills for each property owned must be submitted.
  2. Leases
    1. Non expired leases are required for all rental properties that are owned individually at the time of closing on purchase or refinance transaction. This is for all properties owned which may or may not be the subject property
  3. Personal Federal Tax Returns
    1. Federal tax returns are requested if there is any kind of income or loss from Schedule C, self-employed, sole-proprietor ownership in any kind of company (1099 income), or if there is a large amount of commission income (compared to overall income), any unreimbursed expenses, investment income and/or annuity income needed to qualify for the mortgage loan you are applying for. Submit returns for the last 2 years. Be sure to include page 2, signed and dated, and ALL schedules.