What is the needed documentation for a loan application?
Getting prepared for the home purchase process should include gathering the needed documentation for a loan application.
The exact list of the documentation needed varies depending on the applicants situation. However, there is a basic list of documentation for a loan application that can be the basis of your preparation. Let’s take a look at it.
Loan Documentation Checklist
Not all items will apply to your situation
- Pay stubs for the most recent 30 days available
- W-2’s for the previous two years
- Federal tax returns for the previous two years. All pages and schedules must be included
- If self-employed, provide all pages and schedules of last two years’ business tax returns and corporate K-1’s
- Proof of additional income, such as Social Security benefits, child support, or alimony (if applicable)
- Provide ALL pages of most recent 2 months’ statements for all accounts; including all checking, savings, stocks, IRA, 401k, etc. The statements must show your name, account number and the name of the banking institution. Any non-payroll deposits will have to be explained and documented.
- If funds to close will come from a gift, complete the gift letter (will be provided to you) and the following:
- From the donor – bank statements showing the funds in the donor’s account and a copy of the check from the donor’s account
- From you – a copy of the deposit slip showing the gift check deposited into your account
- If funds to close are from sale of home
- Estimated closing statement showing anticipated proceeds
- Copy of final closing statement and deposit slip showing proceeds deposited into bank account
Credit / Identification/ Eligibility
- Copy of driver’s license or other photo I.D.
- Copy of divorce decree
- Copy of bankruptcy papers, including all schedules and discharge, and credit explanation letter for reason for bankruptcy Letter of explanation on any late payments, collections, charge off’s or derogatory credit
- Letter of explanation for all recent credit inquiries
- If VA, DD214 if not active duty or Statement of service if active duty
- Select your insurance agent and provide agent’s name, address, and phone number
- If refinance, or if you will be retaining your current home or own other property
- Current mortgage statement
- Copy of insurance declaration page
- If you’re currently renting, provide your Landlord’s name, phone number and address. 12 months cancelled rent checks will be necessary for private landlords.
- If you live with a family member, letter stating you live rent-free
Do you have a special situation and not sure what you will need to document it? Contact me and I will be happy to help you out.