Name: Mortgage Mark
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Below is a more in-depth look of documents that may be required for a home loan. Not every item listed below may be applicable or even necessary.

The intent is to provide an understanding of why something may be requested during the home loan process.

Detailed Checklist

General Info
- Driver’s License
- Homeowner’s Insurance
“If Applicable” General Info
- Property Survey (for refinances)
- HOA Info (for condos and townhomes)
- VA Docs
- Residency Documentation
Income
- Paystubs (30 days)
- W2 (two years)
- Tax Returns (two years)
- HR Info
- Employment Contract
Self Employed
- K1’s (two years)
- Business Tax Returns (two years)
- P&L (YTD)
Other Income
- Social Security Income
- Pension / Annuity Docs
- New Job Offer
- Relocation Transfer Letter
Assets
- Bank Statement (two months)
- Canceled Checks (earnest and option money)
- Large Deposits
- Joint Access Letter
- Gift Documents
- Proof of Liquidation
- CPA Letter
Real Estate Owned
- Current Home
- Other REO
Legal Docs
- Divorce Decree
- Bankruptcy Docs
- Power of Attorney
Docs We Send
- Loan Disclosures
- Credit Inquiries Letter
- Gift Letter (if applicable)

General Info

This section provides details on the following:

Driver’s License
Insurance Info

Driver’s License

Please make sure your driver’s license is legible. It’s easy to take a picture of your license with your phone and send it to us.

Provide a brief letter of explanation if the address listed on your driver’s license is different than your current address. (Note: Texas considers your license invalid after 30 days of moving to a new address).

Please be sure to call us if your driver’s license will expire before your closing date. While this isn’t an issue 99.9% of the time, we have had an instance where a second lien lender took issue with an expired license. We are checking for this but please be proactive so we can all plan accordingly.

Insurance Agent’s Information

You will need to contact your insurance agent within 48 of executing your contract to setup your coverage.

Send us your Agent’s name, phone number, and email address. We will contact your Agent directly to get the insurance declarations page (“dec page”).

Note: in some cases (like USAA) you will need to call and give them permission to speak with us about your file.

“If Applicable” General Info

Items in this section may not be applicable to everyone. Please read through them and send any documentation that is relevant to you.

Property Survey (for refinances)
HOA Info (for condos and townhomes)
VA Docs
Residency Documentation

Property Survey (for refinances)

For purchase loans, the Realtors typically provide this to us. For refinances, this should be a part of your closing papers from when you bought the home.

Please let us know if anything has changed on the survey and changed the “foot print” of the house or the property. For example: addition on the house, added a new pool, put a new fence or gate, extended the patio and/or an outside kitchen, etc.). See Why A Lender Won’t Use Your Survey.

Please be sure the survey includes the State Seal and the Surveyor’s signature somewhere on the survey.

HOA Contact Information (for condos and town homes)

Please provide name and phone number of HOA so we can call to procure a condo questionnaire about the complex.

Please note that the HOA may charge you a fee to complete this questionnaire.

VA Documents

We will need a copy of your Certificate of Eligibility (COE). Occasionally we will the DD214 in order to obtain a COE. Feel free to send in your DD214 as precaution.

If you currently have a VA home loan but will sell that house before closing on the new VA loan, please let us know so we can help reinstate your entitlement.

Residency Documentation

If you are a non-resident alien then we will need a copy of your residency documentation.

NOTE: at closing, you will be required to bring 2 forms of ID.

Income

This section provides more details on the following documents:

Paystubs (30 days)
W2 (two years)
Tax Returns (two years)
HR Info
Employment Contract

Most Recent 30 Days of Pay Stubs

Pay stubs must be consecutive and cover a full 30 days. Seriously, if it’s 29 days then we’ll need another pay stub. #Nuts

Pay stubs must show Year To Date (YTD) income and employer’s name.

Please let us know if you have had a change in pay (i.e. raise, change in commission structure, etc.) within the last 12 months.

W2’s: last two years

Please provide ALL W2’s for the last two years. We know the figure is shown on the tax return BUT the W2 helps verify the employers. (Example: if someone has multiple employers in a year the W2s verify the income breakdown).

Tax Returns: last two years

We do need all pages and all schedules of your tax returns. Please let us know if you would like for us to reach out directly to your CPA to get copies of these returns. NOTE: if you haven’t filed this year’s taxes and it’s after April 15th, please send a copy of your extension AND the previous year’s returns.

HR or Manager’s Info

Please provide the name, phone number, and email address of your HR, Manager, etc. that we can call to get a Verification of Employment form completed.

Note: we will also call this person again within 48 hours of closing to ensure you’re still employed at the time of closing.

Employment Contract (if contract or temp employee)

Please send your employment contract if you are a contract to temporary employee. If you do not have a contract then please let us know immediately to ensure we update your file as your job status may change your approval.

Self Employed

Please note that someone is considered “self-employed” if they own 25% or more of a company, partnership, LLC, trust, etc./

This section provides more detail on the following documents:

K1’s (two years)
Business Tax Returns (two years)
P&L (YTD)

K1’s: last two years

The K1’s verify your percentage of ownership in a company and detail any distributions.

NOTE: if you don’t have last year’s K1 then please send the previous two years of K1s.

Business Tax Returns: last two years

We do need all pages and all schedules of your tax returns. Please let us know if you would like for us to reach out directly to your CPA to get copies of these returns.

NOTE: if you haven’t filed last year’s taxes and it’s after April 15th, then please send a copy of your extension AND the previous two years of K1s and Business Tax Returns.

YTD P&L

A Year-to-Date Profit and Loss Statement is required within 30 days of closing. This does not need to be overly complicated. We need to verify year-to-date revenue and expenses.

Other Income Types

The following section expands on the documents for:

Social Security Income
Pension / Annuity Docs
New Job Offer
Relocation Transfer Letter

Social Security Awards Letter

Please send us a copy of your social security awards letter. If you’re unable to locate the letter then please send a bank statement showing the deposited amount.

Pension and/or Annuity Documentation

Please send us documentation for any pension or annuity income that you would like us to use for qualification purposes.

Job Offer Letter

If you are starting (or have recently started) a new job please provide a letter from the employer stating the terms of employment (i.e. income, pay structure, start or effective date, etc.).

Be sure the letter is on the company’s letterhead, signed and dated, includes the start date, local employment address, and terms of compensation.

Relocation Transfer Letter

If you’re relocating, transferring, or taking a different position with your current employer then please provide a letter from HR or Manager outlining the details.

Have the letter state the following:

Acknowledge the transfer of office location and/or acknowledge that you’re able to work from home,
Verify your job title and role – let us know whether they will change or remain the same, and
Verify compensation amount and pay structure – i.e. let us know whether this will change or remain the same.

Assets

Without question verifying Acceptable Funds is the most “annoying” part of the paperwork process when applying for a home loan. Please read this section carefully as we truly need what we’re asking for.

This section covers the following items:

Bank Statement (two months)
Canceled Checks (earnest and option money)
Large Deposits
Joint Access Letter
Gift Documents
Proof of Liquidation
CPA Letter

Bank Statements (two months)

Please provide ALL pages of the last two months of bank statements. Example: If it says page 1 of 4 then we need all four pages, even if page 4 is blank.

Note: Online printouts/screen shots will NOT be sufficient. The statements need to show your name and full account number and online printouts typically don’t show this information.

Please let us know which account the funds for closing are coming from.

Canceled Checks for Earnest and Option Money

Once the option and earnest money checks have been cashed, please provide a copy of the canceled checks (front and back) AND an updated bank statement showing those checks have cleared. If you’re building a home then it may be prudent to get this documentation the month it occurs instead of waiting until the home is completed.

If you do not have an updated statement showing the option and earnest money checks as cleared then please print a transaction history showing these checks. BE SURE to have the transaction history goes far enough back in history to show multiple transactions that appeared on the most recent statement you provided to us. We need this overlap of transactions as proof that all transactions are shown.

(if applicable) Large Deposit Documentation

Note: a large deposit is typically considered any deposit that is more than 50% of your gross monthly income that didn’t come from your employer or the IRS.

We need documentation for any non-payroll related large deposits into your personal bank accounts. For example, if non-payroll deposits are shown then please provide the canceled checks and a written explanation of what the deposits were for. If money is transferred from one personal account to another then please provide a monthly statement for that other account where the money came from.

(if applicable) Joint Account Access Letter

If a bank statement shows multiple names on the account and any of those people are not on the loan, please provide a signed letter from each person not on the loan stating:

“I, FULL NAME, certify that all the funds in the <BANK NAME> account number <XXXX> are 100% accessible and allowed to be used by <BORROWER’S NAME> for the purpose of a home loan.”

(if applicable) Gift Documentation

If any portion of the funds will be (or have been) gifted then please provide the name, address, email address, phone number, and the relationship of person gifting the funds.

We will also need a bank statement from the donor’s account showing the funds transferred. Please call us if you have any questions about this to ensure it’s done “correctly.”

(if applicable) Proof of Liquidation Of Assets

If you are planning on using funds from a 401k and/or brokerage account with non-liquid assets then we will need proof of liquidation of those funds. For example, if you borrow funds from your 401k then we’ll need documentation showing the funds going into your checking account (see “Large Deposits Documentation” above). Moreover, if have a brokerage account and plan on selling some stock for the closing we’ll then need documentation of the sale of those stocks.

(if applicable) CPA Access Letter

If you are self-employed and will be using funds from your business account for closing, we will need a letter from your CPA / Bookkeeper indicating that the withdrawal of the funds won’t adversely impact your business.

Real Estate Owned (REO)

Real Estate Owned is considered any type of real estate that is held in your personal name. Examples: house, lot, timeshare, commercial building, etc..

For Current Home

If Already Sold and Closed: If you have sold your home within the last 90 days then we will need a copy of the executed Closing Disclosure showing the signatures of all parties. If you sold your home over three months ago BUT the mortgage still appears on your credit then we’ll need a copy of that Closing Disclosure.

If you have sold your home within the last 90 days then we will need a copy of the executed Closing Disclosure showing the signatures of all parties. If you sold your home over three months ago BUT the mortgage still appears on your credit then we’ll need a copy of that Closing Disclosure.

Will Be Sold and Closed Before Your Loan Closes: if your home WILL be sold and closed before this closing but is not yet closed, please provide the title company’s information where that sale will take place – we will then call them and get a copy of the executed Closing Disclosure after closing and a Seller’s Net Sheet in the interim.

Will Sell After This Closing: if your current home will NOT be sold and closed before this closing then please provide a brief letter of explanation (i.e. email) for your intentions with the property (ex: do you plan to keep it and rent it out, sell it after you move, let a family live there, etc.)

If You’re Keeping Your Current Home: if you can to keep your current home and intend to Convert A Homestead To A Rental Property or keep it as a Vacation Home then please email us with this intent and know that additional asset documentation may be required.

For Other Real Estate Owned

If you own other real estate besides your current home then please send:

Mortgage Statements

If you have mortgages on the properties and if you escrow taxes and insurance please send a copy of a recent mortgage statement(s) for those properties so we don’t double count the taxes and insurance against you.

Copy of Deed

If the properties do not have a mortgage then provide a copy of the deed as evidence that the property is owned free and clear. (Or you can have the title company do a search but that may cost you roughly $150).

Insurance Info

Please provide the insurance declaration page(s) or Insurance Agent’s information for each property. We can call the Insurance Agent and get the declarations page.

Lease Agreements

If you recently acquired a rental property and if 6 months of rental history is NOT on the previous year’s tax return, please provide the executed lease agreement(s) for these properties so we can use the rental income for qualifying purposes.

Legal Documents (if applicable)

Note: all items below must be the executed versions with all pages

The “Legal Documents” section reviews:

Divorce Decree
Bankruptcy Docs
Power of Attorney

Executed Divorce Decree – All Pages

All pages of the executed divorce decree are required – and “yes” we do realize how much paperwork that is. Please make sure you provide an executed copy (i.e. signed by all parties and the judge). Some states outside of Texas require a divorce decree, a separation agreement, and a decree absolute; we will need all three of these executed documents.

Note: Even if we are not using any income from the divorce decree we do need a copy to verify if any debt obligations exist outside of the credit report.

Bankruptcy Papers

If you have declared bankruptcy within the last seven years then please send ALL pages of the executed bankruptcy papers (i.e. the final version with all the signatures).

Foreclosure and/or Short Sale Paperwork (#)”]If you have had a foreclosure or short sale in the last seven years, please provide a copy of the executed settlement statement for verification of when it was finalized.

Power Of Attorney (POA)

If you, your spouse, and/or another person on the loan won’t be able to attend closing and needs a Power Of Attorney then please connect with the title company to create the POA. (Note: any Power of Attorney that you currently have most likely will NOT be acceptable. POAs for a mortgage need to be property specific and created for the sole purpose of the home loan.

Docs We Send You

We will be sending you documents that will need to be signed and returned.

The following items are what we send to you during the process:

Loan Disclosures
Credit Inquiries Letter
Gift Letter (if applicable)

Loan Disclosures

During the loan packaging stage we will send you loan disclosures that will contain about thirty e-signature disclosures and six “wet” signature documents. All these disclosures will need to be signed and returned before we can move forward.

Credit Inquires Letter

The credit inquire letter will also be provided in the loan packaging process. The credit inquiry letter is an list your recent credit inquiries as well as past home addresses. A detailed explanation will be required for each credit inquiry and address conflict.

Gift Letter (if applicable)

If gift funds are being provided (i.e. money is being used that came from someone that is not a party to the loan) then a gift letter will be required.

Complete Mortgage Document Checklist