There are many different pieces of the mortgage loan process a client needs to keep in mind when starting the home buying process. More so now than ever before, documentation is crucial to the process. Gone are the days of stated income and no doc loans. As a lender, we will be verifying your income at your current employer and match that to your earnings over the past two years. In addition, we will also want to see where your down-payment money is coming from. I tell my clients to think of me as your advocate with the underwriter, I will take all your documentation and verify that everything meets the guidelines of the loan we are searching for.
It is better to tell the loan officer all the details of your finances ahead of time, instead of getting tripped up during the process when it may be to late to correct the issue. I have listed below the information you should have available the first time you meet with your lender:
- Copy of Purchase Sales contract or Offer to Purchase and all addenda (signed by buyer and seller)
- Past 2 years’ tax returns and W-2s
- Past 2 years’ employment history
- Last 3 consecutive paycheck stubs (5 if paid weekly)
- Name, address and phone for past 2 years’ residence(s) and landlord(s). Renters should bring evidence of 12 months’ rent payments.
- Last 3 months’ statements for savings, checking, CD, money market accounts, etc.
- Recent statement on retirement accounts (IRA, 401K, 403-B, Annuity, etc.)
- Monthly payments and balances on all open accounts
- Divorce decree (if applicable)
- Bankruptcy schedules/Discharge papers (if applicable)
- If you are NOT a US citizen, provide a copy of your green card (front & back). If you are NOT a permanent resident provide a copy of your H-1 or L-1 visa.
By taking the time to gather this information BEFORE meeting with your lender, you will start the process out on a smooth note and limit the questions a undewriter might ask about your qualifications.