Picture it: You found the house of your dreams. You shopped around for the perfect lender. Now it’s time to get all your ‘ducks in a row’ so you can move in and start enjoying it as soon as possible. Oh boy! You know what that means – Paperwork!
Actually, it’s not as bad as all that. Because you can start gathering most of the information you’ll need to provide to your mortgage lender even before you find the home you love. And to help you start planning ahead for the day you’re ready to submit your loan application, we’ve put together a checklist for you. (Because, hey – who doesn’t love checklists?)
Following is a list of the general information every lender will require for your application – although depending on your individual circumstances, your loan officer may require additional documentation. But knowing where to start is half the battle!
Identity and Income Verification
• Your full legal name, Social Security number, and birth date. (Assume you’ll be asked for a copy of your driver’s license or state-issued photo ID card, along with a copy of your Social Security card.)
• Your phone numbers, email address.
• Current residential mailing address, along with former addresses during the past two years.
• Your lender will need to pull their own credit report. But it’s a good idea for you to get a copy of your credit report early. That way:
o You can check it for errors – and submit the necessary corrections ahead of time.
o Be aware of any credit issues that will require explanation (late payments, collections, or other derogatory items) – then create a written explanation for each item.
• Provide the name, addresses, and phone numbers of all your employers over the past two years.
• Written explanation if employed less than two years or if an employment gap exists within the last two years.
• Documentation of compensation from employer, either monthly or bi-weekly. Online pay stubs must be signed by a company representative.
• Copies of your W-2s for the past two years.
• If you are self-employed, additional documentation will be required typically in the form of Profit & Loss Statements, tax return forms, etc. Your lender will advise you what you need to compile.
Assets / Debts
• Copies of statements from your personal and/or business checking, savings, brokerage, retirement, and money market accounts that are requested in order to verify assets, income, or the sources of large deposits, excluding paychecks. Typically, borrowers are asked to send statements from the previous two or three months. (Be sure to include all pages of the statement, including ones that are blank.)
• A list of your monthly debt obligations. (Include name, address, account number, and amount).
• Document the source of funds for any large deposits on asset or bank statements.
Tax / Legal Documents
• Federal tax returns (1040s) for the past two years.
• Your lender will have you complete a Request for Tax Transcript form. This is required on all applications and gives your lender permission to verify the income reported to the IRS. Usually requested for the previous one or two years.
• If there is a Bankruptcy in your history, provide a copy of your Bankruptcy discharge papers.
Property Purchase Documentation
• A copy of the signed Purchase Agreement or Sales Contract between the buyer and seller describing all the terms of your real estate purchase transaction.
• The name and contact information of the insurance company for your new home.
It may sound daunting – but the great news is, with a mortgage broker (like Premier Mortgage Lending) – you fill out the application and provide the necessary documentation just once – and then your Loan Officer will be able to shop around to find you the best rates and terms from multiple lenders. So shop away for that new home, and use the checklist above to get prepared in advance – and you’ll be ready to close escrow before you know it!
Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.