The loan process works best if everyone is prepared.
The Realtor can help everyone if the homebuyer has all necessary information required by lenders. Mortgage companies have numerous checks and balances to make sure all necessary information is on hand, so the Realtor should make sure these are available:
1. Valid Sales Agreement including all amendments and riders with original signatures.
2. Address of residences for the last two years.
3. Photo identification and evidence of Social Security number.
4. Employers’ name and address for the last two years, including dates of employment and monthly income, and:
a. Most recent pay stub;
b. W-2 forms for the past two years;
c. If commissioned: signed income tax returns from the last two years;
d. If self-employed: signed income tax returns, both personal and business, from the past two years, and year-to-date profit and loss statements and balance sheet.
e. If the borrower was a fulltime student at any time in the previous two years, a copy of the diploma or the transcripts.
f. Evidence of any other type of income such as Social Security benefits, retirement, interest or dividends.
5. Current lending institution names, addresses, phone numbers, account numbers and balances for: a. Checking and savings accounts. b. Credit Unions. c. Present creditors such as car loans, charge accounts, student loans, child care expenses, child support and alimony. d. Mortgage lenders or landlords for the past two years. If the borrower has recently sold a home, there should be a copy of the settlement statement.
6. Copies of the last three bank statements and/or passbooks.
7. Detailing of the approximate value of any other assets such as automobiles, jewelry and household goods.
8. A list of real estate owned including property address, mortgage lenders’ name and address, account numbers, monthly payments and current balance. A copy of all rental agreements should be included.
9. Documents relating to the following:
a. Judgments. There should be a copy of release/satisfaction.
b. Bankruptcy: provide copies of petition for bankruptcy, the schedule and the discharge.
10. If the borrower is divorced, include a copy of the final decree and property settlement.
11. A check for the credit report and appraisal fee should be included.
12. The name, address and phone number of the nearest living relative.
If the borrower is a VA buyer, add these:
13. Certificate of Eligibility.
14. A copy of the borrower’s discharge and separation papers (DD-214) or Statement of Service, if active duty.