Documents Required To Process Mortgage Loan

Documents Required To Process Mortgage Loan

Mortgage Documents Required To Process Mortgage Loan By All Borrowers

There are documents required to process your loan by all mortgage lenders. Below is the basic list of documents required to process mortgage loan by Nationwide Mortgage and Realty LLC NMLS 276777. Other documents required to process mortgage loan will be required if the situation applies such as the following:

  • Prior short sale, then closing paperwork of closing statement
  • Foreclosure and/or deed in lieu paperwork
  • Bankruptcy paperwork and all schedules
  • Child support and/or alimony paperwork if it applies to borrowers
  • Written payment agreement for tax liens and/or judgments
  • If student loans are in deferment, a statement on what the fully amortized monthly payment will be on an extended payment plan by the student loan provider

Below Is A List Of Documents Required To Process Mortgage Loan

Please provide us with the following items applicable:

  1. Paycheck Stubs:  Most recent pay stubs covering a full 30 days. If borrowers are paid weekly, then need to provide four weeks of paycheck stubs. If applicants are paid twice a month or bi-weekly, then provide two or more paycheck stubs so it covers a full 30 days of pay period. So there are no misunderstandings and to make it easier for the loan officer, please make it a point that the loan officer fully understands on how borrowers get paid. For example, if mortgage applicants receive bonus or commission income, advise the loan officer on the frequency and how long.  Borrowers who are school teachers, advise the loan officer on the payment schedule over a 12 month period. Some teachers may get paid over a 10 month period, 11 month period, or 12 month period. Qualifying income is one of the most important steps in the mortgage process .
  2. Bank Statements: Borrowers need to provide two months of most recent bank statement for deposit accounts (checking/savings). Borrowers need to provide all pages of the bank statements even if they are blank. If it is a transaction history (bank statement printouts) it must be from the bank teller. Bank account holders needs to tell the bank teller that the lender needs 60 days bank statement printouts. Bank tellers will know exactly what to provide for those that tell them that they are applying for a mortgage. The bank statement printouts must be signed, dated and stamped by the bank teller and must include the account holder’s name and account number. Most mortgage lenders prefer the actual bank statements by the bank, however, bank statement printouts that has been signed, stamped, and dated by the bank teller is acceptable. Transaction reports (bank statement printouts) are common when there are gaps in dates or sourcing funds from a gift. When a borrower get Gift Funds for down payment by a family member, the donor needs to provide 30 days of their bank statement where the gift funds were seasoned and show that the exact amount of gift funds withdrawn from their bank account. The recipient of the gift funds ( mortgage borrower ) needs to provide the bank statement printout showing the deposit of the gift funds, and the deposit slip of the gift funds.
  3. Tax Returns & W-2s: All mortgage borrowers who are salaried employees and/or hourly employees need to provide two years of tax returns and two years of W2s.
  4. Self Employed Borrowers Need YTD Profit/Loss, Current Balance Sheet, Personal & Business Tax Returns, & K- Borrowers who are self-employed need to provide two years of tax returns, year to date profit/loss statement, and current balance sheet for self -employed borrowers. Page 2 of tax returns must be signed by the borrower and tax preparer/accountant if the tax returns were prepared by an accountant. All pages of the tax returns even if they are blank pages are required.  Self- employed borrowers need to provide both personal tax returns as well as business returns and K1’s.
  5. Homeowners Insurance Contact Information : Borrowers needs to provide the copy of homeowner’s insurance or the name, address, and phone number of the insurance agent that they will be using.
  6. Divorce Decree, Child Support Documents & Birth Certificate Of Children, Alimony Paperwork If Applicable: Borrowers who went through a prior divorce, a copy of your divorce decree, alimony agreement, and child support documentation needs to be provided. If borrower is receiving and/or paying child support, please provide a copy of the child’s birth certificate to ensure that there is a 3 year continuance. Child support income, alimony income, and other income can be used as qualified income if and only if the child support income will continue for the next three years.
  7. Asset Account Documents:  Borrowers need to provide 401K Paperwork, Profit Sharing and/or Pension Fund statements. All pages are required including blank pages:  if using these accounts to show proof of funds for down payment and/or closing costs, please provide terms and conditions for the asset accounts as well as the terms for eligibility to withdraw the funds from these accounts.
  8. Liquid Asset Accounts: Liquid asset accounts such as Securities Investments, Stocks, Bonds, Mutual Funds and/or Portfolio Investment Accounts, please provide complete statements as well as all pages including blank pages.
  9. Identification: Borrowers need to provide legible copies of front and back of Driver’s License, Social Security card or other forms of identification. Borrowers in the United States on a work Visa please provide a copy of the Visa, SS card and passport.
  10. Real Estate Purchase Contract : Copies of fully executed purchase contract with all addendum needed. If purchase is a Condominium or Town Home, please furnish the association name, phone number, and contact person of the Condo Homeowners Association. Real Estate Purchase Contracts must be signed by all parties. If an earnest money deposit has been given, provide a copy of the cancelled check and the bank statement showing the withdrawal coming out of the account.
  11. Social Security Awards Letter/ Pension Paperwork: Borrowers who are on Social Security Income, please provide copy of Social Security award letter if applicable and if your receiving Social Security for children, please provide dates of birth and copy of birth certificates to show 3-year continuance.
  12. Letters Of Explanations : Borrowers will be asked to write letters of explanations throughout the mortgage process on items that the underwriter may need clarification on.  Need to provide letters of explanation for credit inquiries in the past 120 days, address variances, collection accounts, judgments, and other out of the ordinary issues that may arise during mortgage process. Loan officer will go over the request on letter of explanations. These letter of explanations do not have to be long and usually one or two sentences will sufficient. Example, borrowers with multiple credit inquiries on your credit report from mortgage companies, response on letter of explanation will be ” Shopping For Mortgage”. A letter for explanation for outstanding collection accounts can be ” Was out of work and fell behind due to no income and account went into collection”. Letters of explanations does not have to be long and your loan officer will often write the letter of explanation for you.

Please contact assigned loan officer or call or email Gustan Cho at Nationwide Mortgage & Realty LLC NMLS 27277 at 262-878-1965 or text Gustan for fast response at 262-716-8151. All secured documents should be sent to gcho@nationwidemtg.net