Income, assets, credit
When applying for a mortgage loan you will be asked to present documentation commonly called “alternate documentation”. It means that a number of answers can be obtained from the borrower instead of having to wait for the answers coming from the mail. Documents you need when applying for a mortgage loan may differ on the loan if it is a conforming loan like Freddie Mac or Fannie Mae or a non-conforming government loan, jumbo or portfolio loans. Verifications of all required documents are still mailed out because they are still considered a quality control procedure. But you need to know that you will get a faster and easy loan approval by using the alternate documentation method. Get the following documents ready:
Income: W2 forms for the last two years, federal tax returns specifying if you are self employed-earn regular income from capital gains-earn up to 25% of your income from commissions, own rental property, pension award letter if you are retired, social security award letter if you are still on Social Security.
Assets: bank statements from the previous two or three months on all accounts, gift letter in case part of the funds come from a family member, copies of the gift check and deposit receipt showing the pertinent money deposited into escrow.
Credit: landlord’s full name and contact information in case you are renting, so it is for rental verification. Credit reports and copy of bankruptcy papers in case you have filed bankruptcy within the last seven years.
Other: Copy of purchase agreement in case you have made an offer.
For more information related to all documents you need to get ready when applying for a loan, ask your Real Estate Agent.
