What You Need to Apply for a Mortgage

mortgageWith the housing crisis that we experienced 10 years ago, lending is most likely a bit different than it may have been the last time you applied for a mortgage. This is said not to scare you, as lenders are still lending, homes are still selling and there is still a wide range of programs for customers to choose from ( yes, there are even still programs with little to no money down for a mortgage). Contact George with any questions you may have.

 Needed Items for a Mortgage

Income Items

• W2 forms for the last two years
• Most recent pay stubs covering a 30-day period
Federal tax returns (1040’s) for the last two years, if:
~you are self employed
~ earn regular income from capital gains
~ earn sizable interest income, etc.
~ 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.
• Corporate or Partnership tax returns (if you own more than 25% of the business)
•Pension Award Letter (for retired individuals)
• Social Security Award Letters (for those on social security)

Asset Items

• Bank statements for previous two months (sometimes three) on all accounts. All pages, even if you don’t think they are important
• Statements for two months on all stocks, mutual funds, bonds, etc.
• Copy of latest 401k statement (or other retirement assets because they can count as reserves)
• Explanations for any large deposits and source of those funds
• Gift letter (if some of the funds come as a gift from a family member ~ the lender will supply a blank form).
• Additional documentation will also be needed to show transfer of gift funds

Credit Items

• Landlord’s name, address and phone number (if you rent for verification of rental)
• Explanation for any of the following items which may appear on your credit report: Late payments, credit inquiries, collections accounts
• Copy of bankruptcy papers if you have filed bankruptcy within the last seven years

Other

• Copy of purchase agreement (if you have already made an offer)
• Copy of divorce decree and separation agreement

FHA Loans

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

VA Loans

• Copy of DD214


Information in this valuable article provided by Edward Muchnick

edward muchnick embrace home loans

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