Mortgage Application

In preparation for your mortgage application interview, review this list of items below that will be required by the mortgage loan officer.   It’s a good idea to obtain a free copy of your credit report at www.annualcreditreport.com prior to your interview.  Your credit report should list all of your debts, which is helpful to make sure that you don’t forget something.  In addition, review your credit report carefully to make sure that there are no errors and that all information is up to date.

Application Fee:
• Be ready to write a check at the mortgage application interview.  This fee will cover the expense for your lender to obtain a credit report and order an appraisal of the property you intend to purchase.

Salaried or Hourly Compensated Borrowers:
• Pay stubs for all borrowers for the last 30 days.
• W-2 forms for all employment for all borrowers for the previous two years.
• Names, phone numbers and addresses of each employer for the past two years, including dates of employment.  Find out who within your company verifies employment and list that person as the company contact.

Self-Employed Borrowers:
• Personal tax returns for the last two years including all schedules.
• Business tax returns for the last two years including all schedules.
• Current financial statement, signed and dated, including balance sheet and profit and loss statement.
• 1099′s if applicable.

Commissioned and/or Bonus Borrowers:
• W-2 forms.
• Copies of tax returns for the last two years including all schedules.
• Pay stubs for the last thirty days.

Own 25% or More of a Business:
• Corporate or partnership tax returns for the last two years including all schedules.

Own Rental Property:
• Copies of fully-executed, current rental agreements.

Refinancing:
• Copy of your mortgage statement if there is a lien to be paid off.
• Copy of your most recent homeowner’s insurance bill.

Have a Pension:
• Pension award letter, pay stubs and any forms showing duration of payments.
• 1099′s for last two years.

Receiving Social Security and/or Disability:
• Provide a copy of your award letter along with a recent check stub or copy of a bank statement if the funds are deposited electroncially through direct deposit.
• 1099′s for last two years.

Asset Verification:
• Make, model, year and estimated value of all automobiles.
• Copies of titles to any motor vehicles that are paid in full if less than five years old.
• Present value of all real estate owned.
• Provide the address of your bank branch.
• Copy of the last two months statements on the following accounts:
- Checking (all accounts and pages)
- Savings
- Mutual fund accounts
- Stocks, bonds and life insurance
- Money market accounts
- Retirement accounts (IRA, 401k or other)
- Any other financial instrument owned

Debt Verification:
• Provide a listing of all debts including the name and address of all creditors, account numbers, monthly payments and balance owed for the following outstanding obligations:
- Mortgage loan
- Credit cards
- Personal loans
- Automobile loans
- Student loans
- Alimony or child support payments
- Any other financial obligation

Large Deposits Within Last Ninety Days:
• Provide source of deposit and explanation letter.
• Copy of deposit receipt.
• If deposit was a gift, include a signed gift letter.  Use the following format:

(date)

To whom it may concern:

The purpose of this letter is to state that I am giving my (relationship between donor and recipient), (recipient’s name), a gift of ($XXXXXX) to be used toward the purchase of a home.  There is no expectation of repayment of this gift.

Sincerely,

(donor’s signature)

Property Information:
• Copy of purchase agreement.
• Copy of your cancelled earnest money check(s).
• Legal description of the property (your real estate agent will supply).
• MLS listing sheet (your real estate agent will supply).
• If your current home is for sale, provide a copy of the listing contrat.
• If you’re purchasing new construction, provide plans/drawings, specifications, copy of the builder’s contract and a copy of settlement statement from the land purchase.
• If your present home is under agreement, provide a copy of the signed purchase agreement.  If the property is due to settle prior to you settling on your new home, provide a copy of the HUD-1 settlement statement.

For VA Loans:
• Copy of your DD214 form.

Miscellaneous:
• Residence addresses for the past two years.
• Name and mailing address for mortgage holder and/or landlord for the last two years.
• Copy of photo ID for all borrowers.
• Copy of social security cards for all borrowers.
• If applicable, copies of previous twelve months cancelled rent checks.
• Relocation agreement if you were transferred to the area.
• If you were a full-time student during the last two years, provide a copy of your diploma or transcripts.
• Name, address and contact information for your real estate agent.
• Name, address and contact information for your attorney (if applicable).
• If applicable, a copy of your divorce decree, separation agreement, and all addenda for all divorced parties.  If the divorce is not final, provide a copy of all temporary orders.
• Written explanation of credit anomalies, including late payments, credit inquiries within the last ninety days, charge-offs, collections, judgments and/or liens.
• If applicable, twelve months of cancelled alimony checks.
• If applicable, twelve months of cancelled child support checks.  Also provide copy of court order and ages of children.
• If you files for bankruptcy within the last seven years, provide a copy of your bankruptcy papers.
• If applicable, provide the name, address and contact information of the condominium management company where you reside.
• If you are not a U.S. citizen, provide a copy of the front and back of your green card.

Please remember, it is normal for lenders to request additional documentation so be patient throughout the mortgage application process.  Keep in mind that each mortgage application is a request for hundreds of thousands of dollars so lenders must cross all their T’s and dot their I’s which takes time.  The quicker you respond to any requests for additional information, the faster and more smoothly the loan process will go.