Mortgages - Required Documentation

Below you will find a checklist for required documentation based on factors such as type of loan, nature of income, credit discrepancies and asset verification.  If there is a scenario not listed here, please call us at 847-729-1900 and a mortgage lender will be happy to address your question.

 
Purchase  Application Documentation Requirements:
• Copy of Fully Executed Real Estate Contract(including names and telephone numbers of all attorneys and real estate brokers involved in the transaction)
• Copies of any Earnest Money Checks issued
• If you are selling a home, copy of current listing agreement or Fully Executed Contract, if the property is sold 

Income Documentation Requirements for Employed Borrower:
• Current Paystubs
• Most recent year W-2
• Written Verification of Employment(VOE) 
• Most recent 2 Years complete signed Personal Tax Returns including W-2’s(in some cases)
• Overtime/Auto Allowance/2nd Job – 2 yr history and verification of 3 year continuance

Income Documentation Requirements for Self-Employed Borrower:
• Most recent 2 Years complete signed Personal & Business Tax Returns with all Schedules, including K-1’s and W-2’s
• Current Paystubs(if applicable)
 
Income Documentation Requirements for Rental Income:
• Most recent 2 Years complete signed Personal Tax Returns
• Current Leases
• Proof of 6 months cash reserves of full Principal, Interest, Taxes and Insurance(PITI)
 
Income Documentation Requirements for Interest-Dividend/Capital Gain/IRA Income:
• Most recent 2 Years complete signed Personal Tax Returns
• 2 year history and verification of 3 year continuance
• Most recent 2 Months complete Asset statements
 
Income Documentation Requirements for Social Security and Pension Income:
• Most recent 2 Years complete signed Personal Tax Returns
• Current year Award Letter or 1099 for most recent tax year
• Verification of receipt of benefits for most recent 2 months
 
Income Documentation Requirements for Trust Income:
• Complete signed copy of Trust Agreement
• Verification of receipt of income for most recent 2 months & 3 year continuance
 
Income Documentation Requirements for Alimony and Child Support Income:
• Verification of receipt of total court ordered amount for most recent 6 months
• Copy of signed Court Order
 
Credit Documentation:
• Written explanation of any significant derogatory credit
• Documentation if debt is responsibility of third party(ie: divorce decree, proof of payment, etc.)
 
Asset Documentation:
• Most recent 2 months complete statements for bank/brokerage accounts listed on application.
• For Purchase Mortgages – Verification of source of down payment
• HUD-1 or Closing Statement from sale of Real Estate(if applicable)
• Explanation/Documentation of any large deposits
• Gift Letter(if applicable) – Must include: Donor’s name, address, phone, relation to recipient(must be a relative), amount of gift, subject property address, donor’s       signature, verification of gift assets and evidence of transfer of funds prior to closing.   May not be used for investment property.
 

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