Buying a Home? A Handy Checklist Of Loan Documents

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Real Estate

Hello & Welcome Back to #FabulousFriday!  Regardless of what you may hear on the news--many potential home buyers are still searching for their perfect dream home.  Often, one of the hurdles involved in completing this life goal is the requirement to get pre-approved for a mortgage loan.  Applying for a loan can sometimes feel overwhelming.  In fact, it can seem as long, complicated and arduous as astronaut training.  While the process is difficult, it shouldn't prevent you from following your dreams of home ownership.  Here's a handy checklist of items that you will may need to gather to provide to a mortgage loan officer:

Items You May Need for Loan Application:

Asset items

  • Previous three months’ bank statements on all accounts.
  • Statements for two months on all stocks, mutual funds, bonds, etc.
  • Copy of latest 401K statement or other retirement assets
  • Explanations for any large deposits and source of those funds
  • Copy of Previous Closing Disclosure or HUD-1 Settlement Statements from the sale of any previous real estate transactions
  • Gift letter (for funds from family members); donor’s bank statement; copy of gift check; copy of deposit receipt

Credit items

Landlord’s name, address, and phone number (if you rent - for verification of rental)

Explanations for late payments; credit inquiries in the last 90 days; charge-offs; collections; judgments; liens

Copy of bankruptcy papers filed within the last seven years

Copy of Driver's License and Social Security Card or Tax ID as applicable

Income items

Last two years’ W2 forms

Most recent pay stubs covering a 30 day period

Federal tax returns (1040’s) for the last two years, if:

you are self-employed; earn regular income from capital gains; earn sizable interest income; earn more than 25% of your income from commissions or bonuses; own rental property; or you take non-reimbursed business expenses.

Year-to-Date Profit and Loss Statement (for self employed)

Corporate or Partnership tax returns (if you own more than 25% of a business) l Pension Award letter l Social Security Award letters

Miscellaneous items

Purchase agreement copy (if you’ve already made an offer)

Receipt for child support payments l Copy of Divorce Settlement

Copies of twelve months canceled checks to document actual receipt of funds

VA loans

Copy of DD214

If you would like a referral to a trusted mortgage loan professional--we can help.  Simply reach out to one of our friendly and knowledgeable Shaffer real estate agents today.  We can help to set you on your path to home ownership.  See you next Friday for more real estate tips and tricks.  Warmly, Susan