WHAT TO TAKE TO LENDER? – GET YOUR DOCUMENTS READY!
The mortgage application process and loan process can be made easier by understanding the the documents needed and being prepared for typical hiccups in the process. So, let’s discuss What to take to Lender?
Each lender needs many basic sets of information, which are standard for all buyers. In addition to the standard information, lenders also ask for additional information to approve your loan. A good idea is to accumulate all the basics and possible other information and have it ready from day one. Be prepared for the lenders to ask for additional information. Also, be prepared for lenders to ask for updates. Check stubs and Bank Statements will need to be current through closing. In an effort to help you be prepared just click here and let us know you are looking for the complete “take to lender” checklist.
THE BASICS
Obviously some of the first required items will be your complete name, address, and place of employment, social security number. The lender will want a copy of your driver’s license and possibly your social security card. The lender will also want all of your previous residences over the past five years, how long you have lived there as well as landlord contact information.
FOR THE PAST TWO MONTHS
Paycheck stubs showing year to date earnings, Bank account information for Checking Account, Bank account information for Savings Account, Account information for any other accounts, Child Support and or alimony payments or receipts, Recent 401K and any other Retirement Account Statements Social Security, Disability, Pension Receipts. When preparing this list of items please note that the lender will want every page of the document. Often times, bank statements may have an intentionally left bank page. If there is a blank page, they want it. If the complete statement says page 1 of 6, they want all 6 pages even if it is something you think irrelevant.
FOR THE PAST TWO YEARS
Current Employer contact information: name, address, phone numbers Previous Employer contact information: name, address, phone numbers any other Employers contact information: name, address, phone numbers W-2 Forms – Tax Forms. If there are any gaps in your employment, the lender will want to know why.
ASSETS
Car(s), Boat(s), Motorcycle(s), RV, Jet ski(s) etc. All Houses, Land, Businesses, Stocks, Bonds, CD’s, Retirement Information. Stocks, Bonds, CD’s and other investments may require that you provide information on the ease of cashing them out or selling them. Penalties etc. for selling them. You will need to provide the names and addresses of each of the financial institutions along with account numbers and current value and balance.
LIABILITIES
Student Loans, Car, Boat, Motorcycle, RV, Jet ski Loans, Home Loan & Home Equity Loans, Credit Cards (Don’t forget department store credit cards- Target, JC Penny, etc. cellphone
PREVIOUS EMPLOYERS
The name, address, phone number, job position for all jobs for the past 5 years. That may include any personal Internet business or something you do on the side.
A LITTLE MORE INFORMATION . . . . .. AND . . . . . AND . . .. AND
Some other items that may be overlooked that a lender may ask for are: VA benefits, overtime, Commissions, Interest Income, Receipts showing on-time payment of rents and utilities, Copy of Divorce Decree or Separation agreement with documentation of Child Support or Alimony Payments including cancelled checks for the past 12 months or court clerk’s history of these payments, Copy of Military Orders or Copy of Employment Award Letter for a new job.
Take in mind that lenders are looking for an over all picture of your financial health. They will be looking at your credit score, but still want a clear picture of you. Think about everything you do, they want to know that when they give you the loan that you will have the ability to make the payment. Lenders want to source every penny that enters and exits your bank account. So, the bank may ask for explanations on where the money went and how it went there. Did you sell a vehicle? Did your parents give you a gift to put toward the closing costs of down payment of a home? Be prepared to explain. There are many guidelines that lenders use to help them determine if you are good candidate for approval. Explanations such as it were under my mattress for a rainy day will not fly. A responsible buyer keeps track of their finances, and pays their bills on time.
It is not uncommon for lenders to come back and ask for more information all the way up to closing. One way to help curb these requests is to have the lender submit the loan prior to contract. Ask the lender to send your information to underwriting and come up with the loan commitment. A loan commitment usually has a list of all items that are needed for the final approval – clear to close. Just take in mind that the lenders may still request more information.
The lender will re-verify credit and employment right before closing which means do not buy anything extra for your new home. New curtains, furniture and appliances may be great for your new home, but if your loan is denied due to these excessive purchases you may be very disappointed in your choices.