Home Loan Application Checklist

This home loan application checklist will help your loan process go smoother. It prepares you in advance with a list of documents and items your loan officer will most likely request as you begin the home loan process.

Home Loan Application Checklist:

• Primary residence

• Secondary residence

• N/O/O – Non-owner occupied (investment property)

Salaried Borrower(s) – (Full Document - "show pay stubs")

• W-2 forms for previous two (2) years

• Most recent paycheck stub(s) – (1 month’s worth from date of loan application)

Commissioned/Bonus Borrower(s)

• Complete copies of previous two (2) years personal tax returns

• Most recent paycheck stub(s) – (1 month’s worth from date of loan application)

Self-employed Borrower(s) – (Stated - "no pay stubs")

• Two years of self-employment
• Tax returns
• Bank statements (personal and business)
• CPA letter or business license
• Reference letters

For a copy of your Tax Returns visit the Internal Revenue Service (IRS).

Must have two years of residence history
• Must designate whether you own or rent and the length of time

• Private VOR (Verification of Rental) history – If you rent from an individual (i.e. landlord)
  a. Need 12 months of canceled rent checks
  
  b. Bank statements
  

• Management VOR (Verification of Rental) history– If you rent from an apartment complex

• Canceled rent checks

• Rent-free letter (i.e. if you live with parents or family)

For more on information about Verification of Rental History see Frequently Asked Home Buying Questions.

• Two full years of employment history required

• Include second jobs if applicable (usually require at least one full year of employment)

• Detailed explanation required for any gaps (i.e. illness, maternity leave, deployed, etc.)

• Social Security

• Military

• Child Support

* Must have copies of award letters, and proof that it is being paid (i.e. bank statements).

May use these as compensating factors and/or reserves:

• Checking/Savings accounts

• Stocks/Bonds

• Real Estate

• Retirement Accounts/401k

• Other

**Compensating factors are used as substitutes to help make your loan application look stronger if it may be weaker in other areas. For instance, if your length of employment has not been a full two years, but you have one or more of those compensating factors above working in your favor; it may help balance out the employment history to keep you moving toward pre-approval.

The following information is typical, but NOT guaranteed. All lenders vary in their guidelines.

COLLECTIONS:

• Typically collections older than two years – ignored
• Typically collections less than two years – every lender differs

JUDGMENTS:

• Judgments affecting title MUST be paid in order to close on the loan (Approval is still possible, but judgment must be paid on or prior to the day of closing)

BANKRUPTCIES:

• Chapter 7 – approval at 1 day out of bankruptcy @ 600 + credit score (Conventional loans approve chapter 7 bankruptcies)
• Chapter 13 – approved based on file date of bankruptcy FHA loans approve chapter 13 bankruptcies)

FORCLOSURES:

• Must be 3 years or older with a letter of explanation

Additional documentation might be required, depending upon your specific situation. Keep in touch with the lender during the process to confirm they have everything they need. It's not uncommon to get into a file only to determine more documentation is needed.

MAINTAINING PATIENCE IS IMPORTANT THROUGHOUT THIS PROCESS!However, if you gather these documents listed in the home loan application checklist before you begin the process you will be way ahead of the game!

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