Having the proper loan documentation is critical for accurate initial approval.
Providing it in a timely manner will significantly speed up said approval of your mortgage loan. It will also eliminate any surprises (deal breakers), as the initial underwriting process will leave no stone unturned.
Your mortgage loan officer can help you retrieve some of the items below, as well as identify suitable replacements if necessary. Note that while this is a fairly comprehensive list, the underwriter on your loan might request additional items as needed.
Basic loan documents:
- Copies of ID’s for all borrowers on the loan. SS cards are also required on government loans
- Most recent 30 days worth of pay stubs from each employer (I prefer 60 days if the income is paid other than as salary)
- Past 2 year’s w2’s or 1099s from each employer
- Most recent 2 tax years with ALL schedules
- Most recent 2 months of bank statements, all pages included, even if blank.
- Recent copies of any assets, including 401K, Retirement, Investments – ALL pages, even if blank (optional)
- Proof of Homeowner’s insurance or quote – company name, policy number, agent name and contact
- Copy of mortgage statements for all mortgages, with full account numbers listed
- Rental contracts/leases if rental income is used to qualify.
Self-Employment document checklist:
- K-1 Schedules for all businesses listed on the 1040 returns
- If the K-1 shows 25% or more ownership, you must have 2 years business taxes for each business – all pages and all schedules
- CPA letter stating the existence of the business, or a copy of a current business license for each business (you can also use this Utah Business Entity Search link )
- If you are trying to omit debts because they are paid from the business, you must have 12 months canceled checks showing the payments coming out of the business account.
Retirement income checklist
If you are using SSI to qualify, you will need:
- The current year’s Award Letter from the Social Security Administration. You will also need proof of continuance if you are younger than 65 years.
- Prior 2 years 1099 forms showing the SSI amount paid for the year
- Recent 3 months of bank statements showing the monthly SSI deposits
If you are using other forms of Retirement Income/Annuities:
- Current year’s retirement awards letter and proof that the income will continue for at least 3 years
- If using Investment accounts/Annuities to qualify, you must have the most recent account statement showing enough funds in those accounts to prove a 3year continuance. Annuities must be government backed to use.
Additional loan documents:
- If your property has a Homeowner’s Association (HOA), please provide the name and contact number
- If you have been recently divorced or married, please provide copies of the Divorce Decree and/or Marriage Certificate
- If using child support/alimony to qualify, please provide a copy of the Divorce Decree
- If you filed for bankruptcy, a copy of your bankruptcy paperwork will be needed. You can obtain a copy straight from the State of Utah by using the Simple Case Lookup tool (they’ll email you a copy)
- If the property is vested in trust, copies of the Trust Agreement are needed
- If there are disputed items on your credit report, you must provide a letter from each creditor stating that the account is no longer in dispute
- If your current mortgages are not reporting on your credit report, you must provide a 3-year mortgage history
- If you are using disability income, you will need proof that the disability is permanent (Doctor’s letter for example) and that the income will continue for at least 3 years
- Recent loans that have not yet been reported on the credit report need to be documented, along with a copy of the paperwork
- You will need to provide a paper trail for any large deposits or debt being paid off, showing the source of the funds.
Letters of explanation may be requires for any late payments, proof of access to funds on a joint bank account, name variations on the credit report, employment gaps and or history and whatever else may be specific to your loan scenario.