What Documentation Will Be Requested Of Me To Provide To My Lender

A frequently asked question of OwnerWiz Sales Representatives is what will a lender require from me when I apply for a home loan?

In most cases they will request documentation after they have pulled your credit report as part of the loan application process. Having your documents ready before you get started and being prepared ahead of time will save you time and stress during the loan application process.

Keep in mind that lenders and borrowing situations vary. This can also be said for the documents that a lender may request from you. Below is a list of the documentation that a lender, in most cases, will require from you to start the application process of financing a home mortgage:

ü  Name and address of landlord(s) for the past two years (if eligible)

ü  Proof of all income from the past 24 months (tax returns, pay stubs)

ü  Previous two years' W-2 forms

ü  Copy of most recent year-to-date pay stub for all applicants

ü  Proof of all deposit accounts, checking, savings, money market, IRA and brokerage accounts

ü  Three months most recent statements for deposit accounts, stocks, bonds, etc.

ü  If you chose to include income from child support/alimony, copies of court records or cancelled checks showing receipt of payments

ü  Legible sales contract signed by buyers and sellers (if you have already purchased a home)

Name, address, account number, monthly payment and current balance for:

ü  Installment loans (including student loans, auto loans, mortgage loans)

ü  Revolving charge accounts (home equity, credit cards)

If you are self-employed or paid by commission:

ü  Previous two years Federal Income Tax Returns with all schedules.

ü  Year-to-date profit and loss statement and balance sheet.

ü  Corporate tax returns and all schedules.

If you have filed bankruptcy in the last seven years:

ü  A copy of petition and discharge, handwritten explanation of the reason for bankruptcy, evidence of excellent credit since the bankruptcy.

As I previously mentioned not all lenders or borrowing situations are the same, so he is a list of miscellaneous documentation that may be requested:

Condominium Documents - If you are purchasing condo or townhouse you will need to provide the following documents:  

ü  Condo Questionnaire: detailing occupancy status, ownership, and future plans of the project

ü  Master Deed

ü  Declarations

ü  By-Laws

ü  Most recent budget

ü  Master Insurance policy

Job Gap Letter:

ü  This letter will be required if any job gap has occurred in the past 2 years, it should detail the duration of any break in employment and the reason.

Credit Explanation Letter:

ü  If any derogatory information appears on your credit report you will need to provide a letter of explanation detailing the circumstances surrounding the negative information.  Do not panic if you are asked for a credit explanation, even for the most minor marks on your credit report your lender will require a written explanation. If you have concerns just ask your loan officer if your credit issues are serious. We recommend having a current copy of your credit report prior to applying. This will prevent you from any unexpected surprises at the last minute.

Alternative Credit Documentation:

ü  You need to have no less than 4 items on your credit report or your lender will ask you to document other forms of credit until they have a total of 4 satisfactory accounts. This means they require you to document your payment history for accounts that do not appear on your credit report.

  Examples of alternative credit are (For each of these items you will either need to provide copies of the last 12 months canceled checks or a 12 month payment history receipt from the company)

ü  electric bills

ü  cable T.V bills

ü  auto insurance bills

ü  phone bills

Please go to http://ownerwiz.com for any additional tips, resources or instructions on how you can contact an OwnerWiz Representative directly.