Loan Officer Document Checklist

This BLOG On Loan Officer Document Checklist Was Written By Trisha Mangiaracina Of The Gustan Cho Team At CrossCountry Mortgage

Importance Of Loan Officer Document Checklist

This article on Loan Officer Document Checklist is a series of training worksheets that will be prepared and saved on the Mortgage Learning Center archives for both new loan officers or experienced who came on board to The Gustan Cho Team @ Gustan Cho Associates. It is mandatory for all loan officers to make sure that all files are complete prior to submission to processing and follow this Loan Officer Document Checklist . A mortgage file that has been submitted without being thoroughly reviewed and scrubbed by the loan officer is one of the major reasons for mortgage loan delays in closings. A loan officer need to go over the following Loan Officer Document Checklist and go over each document and make sure that the subject document is complete and that there are no missing pages.


Loan Officers should review the Loan Officer Document Checklist and following link.

  • The documents that is listed on the link below are the documents that your borrowers need to send in.
  • Once your borrowers send the documents on the list, you need to go over line item by line item and make sure that there are no missing pages and all documents are complete.
  • For example, with bank statements, make sure that you get all of the pages, including the blank pages.
  • Bank statements will be numbered. For example, page 1 of 10, page 2 of 10, page 3 of 10, page 4 of 10, etc.
  • Some pages may be blank but will show like page 5 of 10 and that page may be blank.
  • However, you need that blank page because all pages needs to be accounted for in order to proceed with the mortgage pre-approval process and any missing pages will halt the mortgage process.

Required Documents By Borrowers

Documents Required To Process Your Loan

Once you receive the list of documents from your borrower, you need to thoroughly review each line item and make sure that the borrower has provided complete packages.

  • For example, do not just turn in 60 days of bank statements unless you have gone through the bank statements in detail.
  • Make sure that there are no irregular deposits, overdrafts, and that you have every page of the bank statements including blank pages.

Below Is Additional Documents Required And Details Of Above List (Link) Of Documents Required To Process Your Loan :


  1. Borrower’s Authorization: Borrower’s Authorization Form will need to be signed by the borrower  and is part of the disclosures where the opening department of the mortgage lender will send out and/or mortgage processor if the processor is the one sending out the disclosures. Loan Officers needs to make sure that they get this signed form back along with other disclosures that require wet signatures from the borrower and include it on the mortgage loan package as part of the submission to processing/underwriting.
  2. Borrower’s Drivers License & Social Security Card:  Identification to comply with the Patriot Act ( Driver’s License & Social Security Card): Make sure that the drivers license and social security cards are legible. One of the mistakes many loan officers make is that they receive these two items but do not take a look whether they are legible or not and little issues like these are things that can delay the loan process once it is further down the mortgage process. Legible copies of the front and back of your driver’s license and social security card is required.
  3. Real Estate Sales Contract On Purchase Transaction (Purchase): For borrowers who have an executed real estate purchase contract, make sure that the purchase contract is signed both by home buyers and sellers and is legible. Make a note of the closing date and that we have sufficient time to process and underwrite the loan. Thoroughly review the real estate purchase contract and make sure that all borrowers are on the contract and make a special note if there is a sellers concession towards buyers closing costs.
  4. Sales Contract On Current Residence (Purchase): Borrowers who are buying a new home but need to sell their existing home and have a pending real estate purchase contract on their exiting home, these borrowers will need to provide the Sales Contract on their current residence.
  5. Homeowners Insurance Declaration Page (Refinance): Homeowners refinancing their current home loan need to provide their current homeowners insurance declaration page.
  6. Mortgage Statement (Refinance): Homeowners refinancing their home loan need to provide their most recent mortgage statement from their current mortgage loan provider.
  7. Cash Out Letter (refinance): Borrowers who are applying for a cash-out refinance mortgage need to provide a letter of explanation as of the reason why they need the cash-out refinance. It does not have to be lengthy and can just be a few sentences such as needing cash out refinance to consolidate my bills.


Loan Officers need to realize that the pre-approval process is the most important phase of the entire mortgage loan process.

  • The number one reason of a last minute mortgage loan denial is due to the fact that the mortgage loan originator did not pre-approve the borrower correctly.
  • The mortgage business is an extremely complex field and it is very easy to make mistakes.
  • However, any and all mistakes need to be avoided at all costs because you, as a loan officer, have life affecting responsibilities.
  • A job as a loan officer is unlike other jobs.
  • One mistake a loan officer makes and pre-approves a borrower who is not qualified for a mortgage loan will mean many lives affected.
  • With a pre-approval letter, the borrower has your blessing to go out and enter into a real estate purchase sales contract and put down earnest money on their home purchase.
  • Once they enter into a real estate purchase contract and have an executed contract back, the ball is now rolling.
  • Make sure that you are 100% solid that the borrower meets all the credit and income requirements before a pre-approval letter is issued.
  • If you are not sure on the income documents due to declining income, irregular income, gaps in employment, part time income, overtime income, royalty income, child support income, social security income, pension income, self employed income, commissioned income, or other type of income, please do not hesitate to ask a senior loan officer or manager for a second opinion. The most important factor in a borrower qualifying for a mortgage loan is income.
  • A borrower can have prior bad credit, outstanding collections, charge offs, prior bankruptcy and foreclosure, judgments, tax liens, and low credit scores but as long as they have documented income, they can qualify for a mortgage loan.
  • On the flip side, a borrower can have perfect credit scores of 800 FICO PLUS and never ever had a late payment in his life but with no documented income, it means no LOAN.

Loan Officer Document Checklist: Income Documentation

Income documentation is one of the most important factors in the mortgage process. Only documented income can be used as qualified income in the mortgage process and there are strict rules on how mortgage underwriters qualify income . Below are the required documents for borrowers on the type of income they earn:


  1. One Months of Pay Stubs (all borrowers): Salaried Borrowers need to provide one month’s pay check stubs.
  2. 2 Years W-2s: Two years W-2s is required to be provided by salaried borrowers.
  3. 2 years tax returns all pages. (this might not have to be submitted with the loan program you are using but must be reviewed to ensure everything is in order on their returns and there are no hidden items that might pop up
  4. 2 Months Bank Statements (all accounts / all pages / no printouts unless contain bank name and borrowers name with 30 days covered): Two-month bank statements is required. If actual bank statements is not available, borrowers need to go to their bank and ask for two months bank statement printouts and the bank teller needs to sign, date, and stamp all pages of the bank statement printouts.


  1. One Months of Pay Stubs (all borrowers): Wage earners earning commission income such as car salespeople, mortgage loan officers, and realtors need to have two years work history as a commissioned wage earner and provide one month’s paycheck stubs.
  2. 2 Years W-2s: Two years paycheck stubs needs to be provided.
  3. 2 Years Federal Tax Returns – all pages / schedules / signed.
  4. 2 Months Bank Statements (all accounts / all pages / no printouts unless contain bank name and borrowers name with 30 days covered). If actual bank statements is not available, borrowers need to go to their bank and ask for two months bank statement printouts and the bank teller needs to sign, date, and stamp all pages of the bank statement printouts.


  1. 2 Years Federal Tax Returns – all pages / schedules / signed
  2. 2 Months Bank Statements (all accounts / all pages / no printouts unless contain bank name and borrowers name with 30 days covered)
  3. CPA Letter – Length as CPA, Number of Years in Business, Percentage of Ownership and year to date Profit and Loss Statement


Rental income can be used as qualified income if you have at least a two year track record of managing rental properties and you declare it on your tax returns (must have a two year history managing rental properties to use this income to qualify).

Here are the requirements on using rental income:

  1. 2 Years Federal Tax Returns: Pages 1 & 2 and Schedule E from the most recent Federal Tax Returns
  2. Converting a Current Residence to a Rental Property. Maximum 70% LTV on Current Residence Verified by an Appraisal or an AVM. Copy of Lease and Cancelled Deposit Check.


Gift funds can be used for down payment.

Here are the requirements on Gift Funds :

  • Gift Letter will be provided by the mortgage lender to have it completed by the donor of the gift funds and signed.
  • Gift Funds cannot be a loan and the donor needs to sign a statement attesting that the gift funds is solely a gift and will not be paid back.

Here are the documents we need by the borrower if the borrower will be getting Gift Funds for the mortgage transaction:

  1. Proof of Donor’s Ability (bank statement covering 30 days of the donor and copy of check and deposit slip as well of bank printout after deposit of borrower. New bank statement printout after the deposit of the gift funds needs to be signed, dated, and stamped by the bank teller)
  2. Copy of Cancelled Check
  3. Copy of Deposit Ticket
  4. Updated Statement or Printout from Borrower’s Account


For borrowers applying for FHA Loans, there are conditions that the lender may request:

  1. Verification Of Rent: Rental History ( Cancelled Checks). If rental verification, also called Verification Of Rent or VOR, the renter is required to provide 12 months canceled checks of the rental payments and/or 12 months bank statements showing the rental payments have been debited by the renter’s bank account.
  2. Cash receipt payment receipts by the landlord does not count and cannot be used for verification of rent proof.
  3. For those who are renting from a registered property management company, a VOR provided by the lender to the property manager of the property management company can be used in lieu of the 12 months canceled checks and/or 12 months bank statements.
  4. All manual underwriting  FHA Loans require verification of rent.
  5. Credit Delinquency Letter: Mortgage underwriters will ask for letters of explanations on all of the derogatory credit items on your credit report. Borrowers should not worry about past delinquent accounts and/or collections and a one or two statement LOX is sufficient.
  6. Inquiry Letter (last 90 days): Any credit inquiries on your credit report in the past 90 days needs a letter of explanation.
  7. Letters of explanations on credit inquiries only need to be one or two statements.
  8. For example, if there were numerous credit inquiries by various mortgage lenders, when all your letter of explanation needs to state is ” Shopping For Mortgage” and that should be sufficient.
  9. If you have any questions, ask your loan officer.

This Loan Officer Document Checklist Was Created And Published By Trisha Mangiaracina, Nicholas Ferrante, and Michael Gracz of The Gustan Cho Team at CrossCountry Mortgage. Trisha Mangiaracina of CrossCountry Mortgage is a veteran mortgage industry expert and consultant. Trisha is also the direct assistant to Nicholas Ferrante and Michael Gracz of The Gustan Cho Team Rapid Response Group at CrossCountry Mortgage and a contributing editor on Gustan Cho Associates Mortgage & Real Estate Information Center. 

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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