If you would want your mortgage loan to be approved faster, being able to provide the necessary paperwork required by the lending institutions will benefit your case enormously. This article will aim to help you prepare the correct documentation that you will need: Income Items: Last two years of W2 forms. The most recent pay stubs you have that has been within the span of 30 days.Last two years o federal tax returns if you are self employed, earn sizable interest income, regular income from capital gains, twenty five percent of your income comes from commissions or bonuses, have a career where you take non-reimbursed business expenses and own rental property. Profit and Loss statement that is up to date for self employed. If you own more than twenty five percent of your business corporate and tax returns should be prepared. Pension award letters for retired individuals. Social Security Award letters for those on social security. Asset items: The bank statements for the last two or three months of all accounts even if you think they are not important.If you have stocks or bond, the stock or bond statements for the previous two months. Latest 401k statements or other retirement statement assets that may serve as reserves. A document explaining the source of large amounts of deposits and their sources. HUD1 Settlement Statements if you have recently sold a home. Only prepare a copy. If a previous home is being sold but not yet closed prepare a copy of Estimated HUD1 Settlement Statement. If some of the funds come as gifts from family members or friends, ask the lender a blank form of gift letter. Gifts also require a bank statement that verifies the donor's ability to make the gift, copy of the check used to procure or give the gift, a deposit receipt's copy that shows the funds being deposited into escrow or bank account. Not all statements that come from the internet are accepted especially when the printed version does not contain the account number, the borrower's name, and the institution's name. Credit Items: If you are renting, verification of rental is needed, so the name of the Landlord, the address, and the phone number.Try to give explanations on late payments, credit inquiries, collections, charge offs and liens that appear on your credit report. If you have filed for bankruptcy during the previous seven years a copy of your bankruptcy statement is needed. Others: If you have already made an offer a copy of your purchase agreement should be prepared.If you wish to show child support as income, you can show receipt of child support, copy of divorce settlement that shows amount, twelve months of cancelled checks that document actual receipt of funds. |
