Documentation Checklist

Below is a list of items common to the loan process. Documentation required for your loan may be different. Please consult with your loan officer. Click on an item for more information.

Credit Documents

A signed and dated signature authorization is required to pull your credit. The signature authorization is also used for employment, rent, and deposit verifications, in lieu of your signing each document separately.

We will need a legible photocopy of your valid Texas Drivers’ License, ID card, or passport to verify your full legal name and current address.

All non-US citizens are required to submit a photocopy of their valid Visa or Green Card to verify your right to legal residency in the US. Green Card copies must include the front and back of your card.

If you opened a new line of credit or took out a loan in the last 60 days, it may not be reported on your credit. In these instances, we will need to add the tradeline to your report. For this, we will need the name of the institution holding your credit, the full account number, the date opened, the full balance on the account, and the payment amount.

If you have any liens or judgments appearing on your credit report, we will need an executed and recorded release of lien letter from the lien holder, such that we can show the lien as satisfied on your credit report.

If any inquiries or additional addresses appear on your credit report, we will send you a Consumer Explanation Letter to complete and sign. Inquiries: let us know the purpose of each inquiry and whether or not a new debt was established. If you established a new debt that is not on your credit report, we will need your note or account information to have the tradeline added. Addresses: explain your relationship to any additional addresses reported for the last 24 months. We want to verify that you do now have any ownership in undisclosed properties.

If you have filed for divorce, we will need a copy of the recorded document to verify receipt or payment of child support, spousal support, acquisition of property or liens, etc. If this may apply to you, and you have questions, please feel free to contact us.

We require a recent mortgage statement for refinance pay-offs and for those owning multiple properties. If you do not have a lien on your property, we will need proof that it is owned free and clear. Insurance declarations showing no mortgagee, a HUD-1 statement for properties purchased with cash, or a paid-in-full note.

If you are a first-time homebuyer with no mortgage history and are currently renting from a non-commercial landlord, we will require 12 or 24 months of cleared rent checks to show consistent payment history.

We require tax statements, insurance declarations, and HOA statements for all retained properties, including second homes and investment properties. It is necessary that we consider all payments and liabilities into your debt ratios, including payments on your additional homes.

If you receive rental income for an investment property, we will need a copy of the current executed residential lease agreement to verify the property will be leased for at least 60 days after closing.

Property Documents

For purchase transactions, we will need a copy of your fully executed Earnest Money Contract. The contract should be signed and dated by both buyer’s and sellers.

For refinance transactions, please submit a copy of your existing survey for approval by the title company. If you have made changes to your property since your last survey, you may be required to order a new survey. Purchase transactions may come with an existing survey, but most cases require a new survey, which we will order on your behalf.

For refinance transactions, we will need a copy of your current homeowner’s insurance policy declarations page. We will update your policy to reflect our mortgagee information and your new loan number. If your policy expires within 90 days of closing, we will require you to extend or renew your policy. For purchase transactions, we will need the contact information for your chosen homeowner’s insurance agent at least two weeks prior to closing.

Employment & Income Documents

We will need copies of your paystubs showing income for a span of 30 consecutive days. If you are paid bi-weekly or semi-monthly, we will need two paystubs. Paystubs must include your full name and address, your base pay, and year-to-date earnings.

We will need copies of your two most recent years’ W-2 forms or 1099s to show annual earned income. All income forms are verified with the IRS via W-2 and 1099s transcripts.

We will need copies of your two most recent years’ tax returns. Returns should include all schedules and pages, as well as proof of filing for the most recent year. If you file an extension, we will need a copy of your extension filing, as well as an additional return from a prior consecutive year. (Ex: if you file an extension in 2012, we will need 2010 & 2011 returns, in addition to your 2012 extension.) All returns are verified with the IRS via tax transcripts. You can request your own transcripts from the IRS by visiting http://www.irs.gov/Individuals/Get-Transcript or calling 1-800-829-1040

We require a schedule K-1 for each corporation or partnership listed in Schedule E for the two most recent years’ tax returns.

If you own 25% or more of a corporation or partnership, as per your K-1 statement, we require 1120 corporate or 1065 partnership tax returns for the two most recent years.

If you own 25% or more of a corporation or partnership, as per your K-1 statement, we require a year-to-date profit & loss statement for that entity. If you do not have a previous year’s tax return or have filed an extension, we will also need a full year’s profit & loss statement for the tax year of which you do not have a return. (Ex: if you have not prepared your 2013 corporate returns, we will need a 2013 P&L, as well as a 2014 YTD P&L.)

If you receive Social Security income, we will need a copy of your official award letter from the Social Security Administration or two months of bank statements showing deposit of your SS funds.

If you are a recent college graduate and do not have two years of employment history, we require a copy of your college transcripts to verify that you were previously a student.

If you have been employed for less than 30 days, are relocating, or have not received paystubs, we will need a copy of your executed employment contract, verifying start date, salary, and location. If you are an independent contractor, we will need executed copies of all current contracts to verify your income source.

Asset Documents

We require your two most recent consecutive months’ bank statements. Statements should be full statements with all pages; account summary printouts will not suffice. All statements should include your full name and address, the institution’s name, dates, and a full account number.

We require two most recent consecutive months’ or most recent quarter’s investment or brokerage statements. All statements should include your full name and address, the institution’s name, dates, and a full account number. Investment assets are counted toward your cash to close or reserves at a value of 70% to the dollar, to account for any losses that may occur with liquidating stock. This is an investor requirement.

We require two most recent consecutive months’ or most recent quarter’s retirement statements. All statements should include your full name and address, the institution’s name, dates, and a full account number. Retirement assets are counted toward reserves at a value of 60% to the dollar, to account for penalties you may incur when withdrawing these assets. This is an investor requirement.

If your cash accounts include any single non-payroll deposits that are greater than 25% of your monthly income, we require a signed letter of explanation and support documentation, such as a check copy, lease agreement, expense report, etc.

Once your earnest money check clears your bank account, we will need a copy of the check image, front and bank, from the bank. In most cases, this is included in your bank statement for the period in which your check cleared.

If you are receiving gift funds from a relative, we require a completed gift letter, which we will provide. Gift funds may only be given by relatives. Acceptable documentation to show transfer and receipt of gift funds are as follow for most loans: Copy of the donor’s cancelled check, front and bank, and copy of the borrower’s deposit slip –OR– Copy of the donor’s withdrawal slip and copy of the borrower’s deposit slip –OR– Copy of donor’s wire to the title company Investors require a paper trail to verify that gift funds are coming from the source documented in the gift letter. Some investors and loan types require different documentation types. Please contact us if you have questions.

Ken Jacobson

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