US Mortgage - Required Documents

We believe that everyone should have the opportunity to rise
to their highest level of achievement through home-ownership

Required Documentation for Purchase / Refinance Loans

Have These Items Ready When You Apply For a Loan

It used to be that lenders required documentation from borrowers, then mailed out verifications to employers, banks, mortgage companies, and so on, in order to verify the data. Nowadays, the interest is often in speed and getting answers quickly, so "alternate documentation" has become more widely used. Alternate documentation means that underwriting answers can be obtained with information supplied directly from the borrower instead of waiting around for verifications to come back in the mail.\

The following documentations are required for most standardized loans as part of alternate documentation processing. Requirements may differ according to whether your loan is a conforming ( Fannie Mae or Freddie Mac ), non-conforming (jumbo) loan, government loan, or a portfolio loan. Verifications are still mailed out, but usually as part of quality control procedures.  A home loan is classified as a Jumbo Mortgage if it is between $417,000 and $650,000 (for the year 2008) and a Non-Conforming Jumbo if it exceeds $650,000.

Here are the documents you will need to supply to your lender to get a quick approval using alternate documentation:

Income Items

• W2 forms for the last two years
• Paystubs covering a 30 day period
• Federal tax returns ( 1040's ) for the last two years, if:
  • you are self-employed
  • earn more than 25% of your income from commissions or bonuses
  • own rental property or are in a career
  • where you are likely to take non-reimbursed business expenses.
• Year-to-Date Profit and Loss Statement (for self employed)
• Corporate or Partnership tax returns ( if applicable )
• Pension Award letter ( for retired individuals )
• Social Security Award letters ( for those receiving Social Security income )

Asset Items

• Bank statements for most recent, consecutive two months ( sometimes three ) on all accounts. All pages of each bank statement are required.
• Statements for two most recent, consecutive 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 HUD-1 Settlement Statement on recent sale of home ( see glossary for HUD-1 )
• Copy of Estimated HUD-1 Settlement Statement if a previous home is for sale,
  but settlement has not yet taken place
• Gift letter ( if some of the funds come as a gift from a family member )
• Gifts can also require:
  • Verification of donor's ability to make the gift ( bank statement )
  • Copy of the check used to make the gift
  • Copy of the deposit receipt showing the funds deposited into bank account or escrow

Credit Items

• Landlord's name, address, and phone number
  ( for verification of rental if you currently rent )
• Explanations if any of the following items appear on your credit report:
  • Late payments
  • Credit inquiries in the last 90 days
  • Charge-offs
  • Collections
  • Judgments
  • Liens
• Copy of bankruptcy papers if a bankruptcy is shown on your credit report or you
  have filed bankruptcy within the last seven years

Other

• Copy of purchase agreement (if you have already made an offer)
• Document receipt of child support ( if you desire to show it as income )
• Copy of Divorce Settlement ( to show the amount )
• Copies of twelve months' cancelled checks to document actual receipt of funds

FHA Loans

• Copy of Social Security Card ( or other documentation of social security number )
• Copy of Driver's license

VA Loans

• Copy of DD214 - if you were in the military, you undoubtedly know what this is because when you get out of the service they constantly remind you to never ever lose this form. For those who were not in the military, this is basically a one page summary of an entire military career, including test scores, important dates, awards, and other military data.

Refinances

• Copy of Note on existing loan
• Copy of HUD-1 Settlement Statement on existing loan
• Name, address, phone number and loan number of existing loan / lender